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Crypto Regulation May Push Bitcoin Investors to Other Industries

10 April 2020 14:40, UTC
Konstantin Rabin

Crypto people have different views on regulations. There are some who say that it is important since it can help the field to further develop and bring crypto to the more mainstream environment. On the other hand, there are some who say that regulations can only do bad, and take away the most important part of crypto, its security, and independence from the governments.

It is hard to say which is the ultimate truth, but it is very clear that both of these views should be kept in mind. There are countries like Switzerland, where crypto regulations help the development of the field. The Swiss government said many times that they are open to further develop crypto and ensure the safety of it. There is even a regulated bitcoin mining fund launched in Switzerland. But at the same time, there are countries like the US, where regulations do no good for crypto.

There are also countries like India, where it was declared that everyone using cryptocurrencies will have to face strict laws potentially having punishments as severe as 10 years in jail. However, recent developments show that there might be room for crypto in India.

This kind of attitude from many countries has resulted in many exchange companies closing down, and some of the Bitcoin investors even announced that they would have to be pushed into the other industries.

What do regulations change?

In many fields, regulation has proved that it can lead to a change for good for many countries — something that ensures safety and a secure environment for users and clients. Regulations are used in many fields where the money is involved, including the field of Forex. As one of the XM review reads, the regulating bodies ensure the safety of clients’ money.

This can also be very important for crypto. There are many people who are worried about their funds and having a regulating body taking care of their money can be a lot of help for them. But, in many cases, regulations become a way for authorities to control certain spheres. This can lead to many problems and for crypto, it can affect the two most important aspects of crypto: transparency and anonymity.

06-12-2019 15:57:22  |   Regulation
The oversight of crypto and blockchain companies could also change the manner in which transactions are made. Initial coin offerings allowed crypto consumers of all budgets to donate to the initiatives they were enthusiastic about — but we all know that it went mostly wrong. Referring to ICOs, others claim that the implementation of stringent regulations calls for the adoption of certain essential investor rights that stock markets take for granted.

Crypto regulations worldwide are extremely diverse and it's hard to tell exactly how the whole market will react when many of the laws finally come into place. The key strength of Bitcoin is the fact that it is decentralized, which makes it difficult to regulate. While blockchain is still a developing technology when it comes to legislation given its increasingly prevalent use among businesses and consumers. No consistent policy has yet emerged around the world, and it seems to be impossible to come up with one regulation that will work for every nation since the authorities have different attitudes towards the currency. While blockchain and cryptos are becoming more common in the private sector and among customers, regulators around sectors are studying how to enforce regulations. When governments start to control the transactions and the safest parts of crypto the problem becomes relevant.

There are many different regulations on crypto, and it is very hard to tell now what they will bring. Countries like Switzerland and Australia are good examples of the fact that regulations can be useful. Crypto offers people something that not a lot of other currencies can, including the safe and secure environment that it has. Taking this away from crypto could lead to many devastating results.

Image courtesy of Medium