Cryptocurrency has changed the world, and it’s only just beginning. This technology has the potential to change the way we work, save, and invest. Those in the know are already using cryptocurrency to diversify their portfolios, to invest in new ventures, and even to purchase property.
Though regulators still are reluctant to respond to the explosion of digital currencies in recent years, some are already beginning to take notice. Last month, the European Court of Justice ruled that an exchange platform based in the United States who refused to comply with US law and transfer the funds of US customers to overseas accounts could be held liable for its actions.
How do we regulate cryptocurrencies? The Internet has been regulated since the beginning of time, and while the line between the two has blurred, they are still considered two separate entities. Even though crypto is not a physical object, it is not a new concept to regulate the Internet. Therefore, there are some laws, rules and regulations that are still applicable to the Internet as we know today. Can these laws and regulations also be applied to the crypto market?. Read more about crypto regulation 2021 and let us know what you think.
Blockchain technology promises to bring humanity and freedom with the advent of Web 3.0, a truly decentralized Internet. Some have even argued that the significant growth of the decentralized financial sector (DeFi) is an important symptom of the conceptual shift from centralized to decentralized services, with Web 3.0 as the cornerstone.
Some even compare the invention of blockchain technology to the revolution started by the advent of the internet itself. Symbolically, the original source code of the World Wide Web, developed by British computer scientist Tim Berners-Lee, is released on the 23rd. June sold at auction at Sotheby’s as a non-playable token, or NFT. These three aspects – NFT, DeFi and Web 3.0 – are interrelated. But in this comparison of the Internet and blockchain, one crucial idea emerges: Without proper regulation of cryptocurrencies and blockchain, there will not be the same success in technological innovation that we have seen over the past 25 years that has changed the world as we know it.
It is now becoming clear that the lack of regulation will hurt cryptocurrency innovation. With the rapid growth of the decentralized technology sector, this area has begun to attract more attention from regulators around the world who are targeting stablecoins, DeFi, NFTs, crypto assets, smart contracts, unhosted wallets, central bank digital currencies, etc. Meanwhile, some experts, like Caitlin Long, founder and CEO of Avanti Financial, see the initial crackdown on crypto-regulation as a positive trend that will only benefit innovators. And others suggest the right way to regulate cryptocurrencies.
On the other hand, current regulations are not conducive to cryptocurrencies, and the inclusion of emerging decentralized technologies could destroy the core values of decentralization and take us back to where we started: with centralized parties controlling the space. Is this the price we are willing to pay to become a regulated industry?
Related: Decentralization versus centralization : Where is the future? The experts’ response
To strike the right balance, the crypto space needs a much deeper and closer working relationship involving both regulators and innovators. Only through a dialogue between crypto companies and regulators, government agencies and industry representatives will it be possible to find the right way to regulate the emerging tech industry – through smart regulation – and the space that promises to transform our lives – a promise that was fulfilled by the proper regulation of the internet at the beginning of the last century.
To find out what the crypto and blockchain industry thinks about this regulatory dilemma, Cointelegraph reached out to a few of them to get their perspective on the following question: Will cryptocurrencies lose their core values as they move closer to regulation, or will regulation adapt to decentralized technology and its benefits to society?To some people, a major piece of the crypto world is an insidiously beautiful concept: a disruptive technology that is highly resilient to outside influences. Yet, at the same time, this technology is highly lucrative, and can be used to keep criminals under the radar. Basically, it is the perfect tool for money launderers, and the currency has already been used in a number of criminal activities, such as the illegal sale of guns.. Read more about eu cryptocurrency regulation and let us know what you think.
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