Crypto Regulation May Push Bitcoin Investors to Other Industries
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.
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.
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.
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.
Image courtesy of Medium