There are some bitcoin regulations that the user must follow and comply with according to the laws of their country. This article will talk about it and if you like this article, go to my website to see more.
Bitcoin is one of the most widely used cryptocurrencies in the world. It can be used to trade things, trade for other cryptocurrencies, etc. What is Bitcoin primarily used for? Bitcoin allows transferring money online quickly, securely, and without third parties. Bitcoin is stored in the Bitcoin Wallet, which is very secure. Unlike the bank, a third party is needed if you transfer money to another country.
Bitcoin also helps reduce the fee paid by a third party, bitcoin only has a transaction fee that is much lower than the fee charged by the third party. The Bitcoin system is completely peer-to-peer, traders are not interrupted by any third party. Very fast Bitcoin transfer unlike a bank needs 5-10 business days to transfer money from one country to another country.
These are the benefits of bitcoin. Some people like to use Bitcoin as payment for illegal drug trafficking. Some of the country's governments have to enact a law against this illegal activity.
Obscure, written by Bajapai (2019) countries such as Russia, China, and Vietnam have totally banned the use of Bitcoin. This is a result of the nature of cryptocurrency, which, since decentralized, can cause many illegal problems such as drug trafficking and illegal transactions.
Besides, Liang declared in 2017 that China banned all cryptocurrencies related to "Initial Coin Offering" because it is accused of "Initial Coin Offering" is an unauthorized fundraising campaign by the government. Since the "first coin offering" does not need to be approved by the authority and cannot be controlled by the government.
In other words, a policy like the Know Your Customer policy was implemented in the cryptocurrency ecosystem.
The government will create a law against cryptocurrency, it will affect how the investor views the cryptocurrency. When the government created the law for cryptocurrencies, it restricted the use of cryptocurrencies. For example, in 2018, Reina declared that the price of Bitcoin fell after the Chinese government declared closing the entire national cryptocurrency exchange.
The reason for the fall in the price of cryptocurrency due to the number of uses of cryptocurrency is falling and losing its value. Unlike China, Russia's finance minister banned cryptocurrencies, but not blockchain technology. Some countries choose to ban bitcoins, and others decide to let their citizens have the freedom to trade in bitcoins. It depends on the country itself. It is still a come for the citizen.
To conclude the article, the government must take an immediate response before it is too late. Investors need to be careful when investing in cryptocurrencies. The local authority can raise awareness of cryptocurrencies by organizing more campaigns around the world. Therefore, the government must take responsibility for addressing the negative impact of cryptocurrencies on the economy and address the issues that investors face when investing in cryptocurrencies.