Governments are finding cryptocurrency too mainstream and chaotic to ignore. Government agencies around the globe are targeting crypto investors with taxes, mandatory registration, and full disclosure rules. This new wave is contradictory because privacy and autonomy have been the strongest characteristics of cryptocurrency.
Questions about State Regulation of Crypto Raises
The registration by Australia of 246 cryptocurrency exchanges in April 2018 and January 2019 was praised by observers and exchanges as an indication of the direction virtual currencies are heading with regard to regulation around the globe.
Industry players view regulatory encroachment positively as a step toward respectability. The price that the crypto community will pay to become part of the mainstream economy is becoming more apparent, raising existential questions about its future direction.
Regulations threaten Cryptocurrency Independence on Shelter Humanity
While early cryptocurrency visionaries tried to avoid authority and emphasized freedom, autonomy, democracy, many new movers welcome regulation to address the trust issues that have plagued the industry.
Malaysia, Australia and Japan are just a few of the countries that have used the law to measure the virtual currency’s aspects. It will be interesting to see how much of what made cryptocurrency so attractive continue to be incorporated into mainstream law.
Satoshi Nakamoto’s revolutionary proposal ten years ago stated that the root problem of conventional currency was all the trust required to make it work. Banks cannot be trusted to keep our money safe and electronically transfer it. However, they loan it out in credit bubbles with only a small fraction of reserve. They must be trusted with our privacy and trust them to not let identity thieves drain accounts.” Cryptocurrency is based on trust rather than trust.
Regulators are rewarded with benign offers
While regulation is being introduced with the seemingly innocent promise of innovation support, …