The issue of cryptocurrency regulation has been up for debate since bitcoin became very popular. In fact the cryptocurrency regulation became intense when bitcoin hit the $20,000 mark last year. Governments in various countries have had their say on the use of cryptocurrencies in their country.
With everyone country and financial giant opting for a global(or nationwide crypto regulation) there is also the fear that a bad regulation will do more harm than good. The truth is the technology(Blockchain Technology) that powers the use of cryptocurrencies is been explore for more use.
While it is true that every government have the interest of its citizens at heart. But bringing out some sort of crypto regulation policy might just bring unintended damage to these citizens they are trying to protect.
The major fear or the major factor why every government wants to regulate bitcoin is to checkmate its use. For example, aside from its anonymous transactions, transferring cryptocurrencies also attract the lowest charge. Using cryptocurrency, one can easily transfer billions of dollar with a transaction fee of maybe two to five dollar.
In September the British Financial Conduct Authority(FCA) were rumored to be introducing a crypto regulation that focuses on consumer protection and anti-money laundering(AML) policy.
This however got mixed reactions as some crypto expert and enthusiasts thought its unwise. While some business experts and analysts give it a green flag.
IS CRYPTOCURRENCY REGULATION NECESSARY
Just to be clear, every government of a country likes and wants to be in charge of wealth circulation in the country. That is why business are registered, business accounts are monitored, tax are paid etc. So to some extent regulating cryptocurrency is not such a bad idea.
But cryptocurrencies the structure of cryptocurrencies are built in such a way that its transactions are anonymous. Now take this away from cryptocurrency then it becomes almost like every other fiat. This leads us to one simple question, is it possible to have a crypto regulation that supports the use of crypto as anonymous.
The truth is government needs details of how crypto transactions work. By details we mean, who sent cryptocurrency, to whom it was sent, why it was sent, when it was sent, address of sender etc. But if you have registered for a blockchain wallet you’ll note that only an email is required to own a crypto wallet. And that is not enough information.
Regulating cryptocurrency is still a pressing issue up to date. Some countries have placed ban on its use while others are still contemplating on what to do with crypto. But the truth still remains that no cryptocurrency regulation is better than a bad government crypto regulation policy.