The Pros and Cons of Crypto Regulations Photo by Raj Chowdhury
Cryptocurrency Exchange Platform Cryptocurrency Exchange Platform The cryptocurrency exchange platform is the new tool for secure payments. Problems such as poor consumer protection, price volatility, the risk of hacking, and money laundering, are always lurking around the corner for the growing cryptocurrency market and this has become a major concern for some governments.
Recently, the BBC reported that the UK Finance Committee was calling for regulations on crypto tokens or cryptocurrencies to protect investors - news that has re-emphasized the impact of such measures.
While there is still sympathy for calling for total non-regulation by anarchists and cyberpunks, let's face it, they were the first behind this cryptocurrency movement. It's important to have an objective view of the prospect.
There is primarily a reason a government wants to control the flow of cryptocurrencies. This is the tacit pact we made with the government from the start. We hope that they will protect us and provide us with certain facilities in exchange for taxes.
Likewise, the government has a duty to protect us from fraud, but like the world, to make money from it. And given the dizzying value of cryptocurrencies, there is much to be gained once governments begin sorting through certain processes that require certain tools.
This brings us to the main benefit of regulations. By scanning the sea of digital tokens, regulators in the crypto space could spot something that is putting them in an outdated position, possibly in some areas, and they may want to shut those areas down. Scams like Bitconnect and Ponzi schemes would be more difficult to implement as they would essentially simply not be allowed or would not exist because certain requirements outlined in the list would not be met.
They protect investors from fraud. If you are an investor in a cryptocurrency and promise you something, it pays to have the support that promise with some kind of regulation, whether it is secured up to a certain value like bank deposits or if they are made to keep their promise. Regulations in this regard protect the end user from fraud.
The inspection of coins by the regulatory authorities legitimizes the cryptocurrency and thus increases its value. If cryptocurrencies are regulated and everyone knows the rules of the game, a lot of money would come out, especially institutional money that hasn't really touched this market at all.
Another benefit of legitimizing cryptocurrencies would be the change of mind that comes from the reluctant older generation, who may be more willing to invest in and trade in them, which will boost the economy.
Countries like Switzerland and Malta are leading the way with their initiative to enact regulations that encourage economic growth by attracting overseas blockchain investors looking for fertile soil to set up their businesses, and they have already given way to prominent names. like PwC, IBM, and blockchain companies like HashCash Consultants, who are making waves with their white label product