The current state of cryptocurrency regulation




 
The current state of cryptocurrency regulation

The digital currency market is under constant flux and the regulators are grappling with the methods to control investment and old systems of banking globally.

 
Cryptocurrency in day to day life
 
Virtual coins have become the important part of an individual’s lives. People are investing in it globally by putting up their money in several startup organizations for catering the requirements of the growing industry. 
 
Digital currencies have a lot of potential to wave off the banks requirement in order to act as a centralized transactional authority for regular transactions. This is made possible without any central registration, clearing of delays, risks settlement and transaction fees.
 

Product & Service Issues of Cryptocurrencies
 
Regulators have analyzed the product and service issues of Cryptocurrencies and those are as below: -
 
1) Protection of Privacy: - It is considered to be the main primary concern of digital currency. This is a part of the underlying principle. There is a use of pseudonyms which conceal out the identity, information & details of the transaction parties that is considered mandatory for privacy enthusiasts.
 
2) Cost Effectiveness: - Electronic transactions help in attracting fees & charges. This fee and charge are considered at higher value which is of transnational nature. Further, a process of currency conversion undergoes at a certain time. The value of transaction fees can exceed 10% of the amount. Virtual currency addresses this issue and tries to eliminate third-party gateways, minimize the costs as well as time delay.
 
3) Reduce Entry Barriers: - Having a proper bank account or a card for an international use needs full-proof documents for income, address or identification purpose. Digital currency plays a vital role in lowering down these entry barriers. Clients give joining at no price. There is a high usability of the services. The users are not allowed to disclose the attached documents. Furthermore, this has positive impacts with respect to offering services as it drives a coach & horses through KYC norms.
 
4) An Alternative to traditional currencies & banking systems: - Government organization has extended their control & regulation over banking systems, international transfer of money & also their nationalized currencies or monetary policies. Virtual currency provides a reliable & secured means of Cryptocurrency exchange irrespective of the outside direct control of nationalized or private banking systems.
 
5) Open Source technology & primarily participation: - There are several digital currencies that are based on the technology of open source methodology. Their software code of source is available publicly for review, development and further enhancement. 

The whole ecosystem is based on the primary participation. A closed set of individuals or an institutional organization helps in the development of software, reporting of bugs, quality testing, and further many things. They are having their own consensus-based decision making, inbuilt quality control, and self-policy mechanisms. The particular ones are for building the frameworks, carrying certain practices etc… although governance remains the most significant challenge.
 

Conclusion

Digital currency over the past year has a huge interest from the mainstream traders that may need standardized Cryptocurrency regulations for protecting low knowledge participants. These regulations will help in flourishing the ethical business models whereas unethical ones will be severely charged a penalty. The most important Cryptocurrency projects will grow and promote in distinct places that has effectiveness towards new technology. 


 About Author


Robert Bint is a senior editor at Bitex.Global; which is the pioneer in cryptocurrency trading & exchange. He enjoys creating, uncovering and disseminating new and interesting perspectives in the cryptocurrency trading industry.





1 comment:

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