Like It Or Not, The Future Of Cryptocurrency Will Be Determined By Bureaucrats

from MIT Technology Review

Denizens of the cryptocurrency world ought to get used to rubbing shoulders with regulators. The dark underbelly of the bonanza in initial coin offerings, rising concerns about the security of cryptocurrency exchanges, and a rush of “Main Street” investors to the scene have helped convince bureaucrats across the globe that cryptocurrency markets deserve a lot more attention. As a US Senate hearing illustrated this week, however, the question of how best to apply that attention is head-achingly complicated.

Why you should care: The stakes are high, and not just because billions of real dollars are on the line. Many think the blockchain technology underlying cryptocurrencies can be as disruptive as the foundation of the internet. Decisions by policymakers will influence whether and how the promise unfolds.

Crackdowns have commenced:

 Gaps: Regulators are still wrestling with how to define cryptocurrency, which is partly why there are still big holes in oversight.

More here.

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One Comment

  1. Cryptocurrency is a digital or virtual currency that is designed to work as a medium exchange. It is a currency that acts independently from the central market, it is one of the most volatile market that has generated a revenue of four billion dollars last year. It is such a very lucrative market that many people across the globe part take in it. There are many Denizen of Cryptocurrency that have made millions of dollars with, just simply, basic knowledge of cryptocurrency and a computer or laptop. Denizens find it a very fascinating hobby and a lucrative one too to be part of the virtual market. Many of these young innovative minds have made millions of dollars from the cryptocurrency market. However, many of these Denizens worry as there have been many talks across the globe of putting regulators on the volatile cryptocurrency market. In the United States, Senate have been meeting and talking of how to turn their attention toward the cryptocurrency market and how to regulate it. I do not think any federal agency can keep the Cryptocurrency in America under a tight watch. The problem with trying to put regulations on this market is that it is very complicated to define and understand cryptocurrency, this makes big holes in creating regulations. Another aspect, cryptocurrency does not follow any written law and federal agency has no authority over the market. The market has no obligation to the government or any law, it follows it’s own rules in a sense. This digital currency is a commodity good that can also cross state lines without any charge or fees, this is one of the most lucrative markets that a person in today’s age to be part of. For senate and any federal agency to put regulations on this cryptocurrency will be a challenge that I would like to see them complete. As of right now, I strongly believe that it is impossible to create regulations on this market and have it function without a problem. It would amaze me to see Senate implement any regulation plans on such an erratic market. Many denizens and personal friends, that I know of, have different complaints of Senate even talking about putting regulations. These denizens do not think the Senate should interact with the digital market because many of them do not want strict regulations on the market, cryptocurrency was created as using real money to transmit it over the internet. I strongly suggest Senate should not touch the cryptocurrency market, it would dissipate many cryptocurrencies user’s interest from using the digital money. If they were to implement a plan of regulation, I strongly believe that it will be very, very difficult for the regulation to even process everything that goes on with the digital market. However, I can possibly be very wrong about the whole cryptocurrency regulation as it was stated in this article by Justin Sullivan. He states, “Regulating cryptocurrency markets is a high-stakes, complicated, fast-moving work in progress.” Soon, regulated Cryptocurrency market can be implemented without a single problem and may change the internet world itself.

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