- Although cryptocurrencies have come a long way, regulation is lacking.
- Due to lack of regulation, numerous problems have arisen.
- At each level, regulation has become a necessity for worldwide adoption.
Cryptocurrencies have become a major digital asset class due to their numerous applications and benefits. But with the services they provide, numerous misuses of cryptocurrencies have been encountered. Therefore, it has become important for people to understand that crypto regulation is a necessity. But the fact is that the regulation should not be lethal so as to completely destroy the blockchain market.
The crypto industry is now a multi-trillion dollar in market cap and it is expected to increase manifolds in the future. The reason is clear, the emergence of crypto has solved a lot of problems that banks were not able to. The introduction of cryptocurrencies has given privacy to every individual. Due to the increase in popularity of crypto, numerous problems have risen too.
Regulation of cryptocurrencies without shutting them out?
The regulation of cryptocurrencies is a major issue for governments across the world. Now there are 3 important pieces of this puzzle that need to be looked at. The first part of the puzzle lies in moderation. If the regulation is done to a huge extent, the crypto market might just get destroyed all over. However, the growth of crypto is massive and therefore, the moderation in regulation is not feasible for the government.
Another answer to this puzzle could be to manage and regulate the crypto industry without deep involvement with the actual technology. Thus, this method involves the regulation of crypto without any kind of involvement or consultation from the organizations that operate within the crypto space. This is also not possible as it will disrupt all the good that comes from blockchain technology.
The most beneficial and viable answer to this puzzle comes in the form of the last piece of the puzzle. This regulation actually depends on the partnership of the government and the crypto industry. This can also be called a truce between the two and is by far, the best option available without damaging the existence and popularity of cryptocurrencies.
This can be done in many ways using a pro-active and diluted regulatory body that would oversee the functioning of the entire crypto market depending on the location. Definitely, this can bring out the best of the crypto industry and might further its growth too. Therefore, this is seen by most as the most favorable path.