The time has come where the digital currencies follow regulations imposed by financial regulators. There are approximately two thousands cryptocurrencies trading on the different exchanges and many companies are planning to launch more coins and currencies. This launch and trading of cryptocurrencies started after the financial collapse that was happened in 2008.
At that time people wanted substitute of banks then Bitcoin was launched which helped investors complete their transactions at high speed. As the popularity of cryptocurrency increased, the fraudulent activities also increased with the passage of time and the currency got devalued. By looking at this situation financial regulators decided to control the crypto industry with some sets of regulations.
After that, many countries have imposed strict regulations on the crypto industry like Thailand, Japan, Malta, US, and the UK. However, Singapore being a hub of cryptocurrencies did not take regulatory measures. In the UK, the government department has intervened in the crypto industry recently. China has also regulated its crypto industry by streamlining crypto exchanges and miners.
To safe cryptocurrencies from devaluation, these regulations became necessary because investors` behavior changed the valuation of the coins instead of financial analysis. By regulating the crypto industry the number of investors can be increased because of secure and scam free market. New ICOs will be easy to launch and they will be operated in a complete legislative environment.
With this blockchain will be evaluated and the uncertainty will decrease and risk management will be easier. For the sustainability of cryptocurrencies, a complete legislative environment is required so that they will stand for the long period otherwise they will diminish.