Supervision And Control Of Cryptocurrencies To Be Historic

Supervision And Control Of Cryptocurrencies To Be Historic

Cryptocurrencies can be seen as a very high-risk digital asset due to their high degree of volatility and complexity, mainly because they do not have the natural backing that typical and traditional financial assets have. However, when they use the platform Bitcoin Era it will definitely reduce its risk.

Let’s see, for example, the high level of volatility of Bitcoin; at the end of the year, its price was close to 60 thousand dollars, but at the beginning of this current year, its levels plummeted close to 30 thousand dollars.

As you can see, the difference in variability in value is excellent, so much so that it has still fallen to meager prices as it was in the crypto-winter of 2018, and from which it stabilized in a short time and positioned itself again as the cryptocurrency with the most boom and demand.

Even though cryptocurrencies were created as a means of payment, the current price development shows that the market sees it more as a speculative asset, despite all the risks.

Some users choose to misuse cryptocurrencies.

Because there is no strict regulation and control based on the use and trade of cryptocurrencies, some people benefit from this lack of law to commit and operate illegal acts and transactions without a sense of responsibility and scruples.

For a long time, cryptocurrencies were used to carry out transactions directly linked to drug trafficking, known as the Deep Web (networks without supervision or control by the authorities).

Despite the risks pointed out above, analysts presume and highlight that the current technology that protects Bitcoin, the Blockchain, provides a change and benefits in the markets due to its high level of efficiency and security.

It is already being seen that Citi and Nasdaq, two prominent organizations that operate with finance, have already applied these security measures such as the blockchain for a long time.

Cryptocurrency regulation and control projects

At present, the disproportionate increase in the implementation and use of cryptocurrencies and tokens as a financial exchange is becoming stronger and more notable.

With the passing of time and seeing the profitability and benefits that they provide to trade and the economy, the entire world has embraced these digital assets more formally.

Laws promoting the prevention of money laundering are being implemented in several countries.

The regulation of cryptocurrencies is an important proposal that will prevent money laundering and contribute to global economic growth and development.

Regulatory aspects are significant for cryptocurrency investors as they will have a very marked effect on the valuation of the cryptocurrency.

Reference can be made to Ether and bitcoin, which have seen dramatic declines since Chinese regulators enacted the fraudulent digital currency startup proposals in 2017.

This situation gave way to the possibility of carrying out small transactions for all users informed of this measure where the following year, there were much more shocking falls when China established and implemented restrictions on cryptocurrency mining.

Conclusion

Since its inception, cryptocurrencies have provided financial freedom and economic decentralization, characteristics that regulation will forcefully repress, leaving cryptocurrencies with a restriction to comply with to operate them as if they were any other fiduciary currency, which is not the essence of the object of the creation of digital currencies.

The aspect that attracted the most attention to applying the regulation and control to these crypto actives was their use for fraudulent and illicit businesses, such as drug trafficking, money laundering, human trafficking, and all types of commerce established outside the laws and legal frameworks based on morals and norms that preserve life and good customs and actions of people within a society.

The regulation and control of crypto are already worldwide, even though its acceptance is minimal, and some countries have partially implemented it intending to protect the integrity and security of investors.

Although there is still much to control in the world of cryptocurrencies, if it were to be fulfilled in its entirety, billions of users would abandon this project because it would end up being the same as the current currencies.

The regulation of cryptocurrencies benefits many but legally affects others that do not even carry out illicit activities.

Let us remember that there is still a long way to go in the cryptocurrency market, and possible options for legalizing digital currencies should not be closed, only that there should be no political interests to achieve it.

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