The cryptocurrency market is very volatile. However, it has attracted many investors and traders because of its potential benefits in recent years. Recently, there have been debates about whether governments should regulate these markets.
Although no government has fully approved or disapproved of the use of cryptocurrencies, most still hesitate to maintain the cryptocurrency market. It is because they believe that these currencies pose a threat to their economy.
This article will look at some of the reasons why governments are not interested in regulating these markets.
Government authorities are not regulating cryptocurrency markets because they may be more secure than traditional fiat currencies.
Cryptocurrencies give you much more control over your money. You have your private keys, which means that no one else can access your funds without your permission. It makes piracy and theft impossible to execute, unlike banks and credit cards. Scammers can quickly access your bank account and steal everything in seconds. That’s when they have the right information about you or access your online bank account.
Unlike government currencies, cryptocurrencies have no central authority or issuer, for example, a central bank. It means that third parties do not charge commissions for using them. When they use credit cards, they are cheaper for merchants who accept cryptocurrency payments, and consumers use cryptocurrencies instead of fiat currencies when they buy goods online or in offline stores.
A work in progress
Cryptocurrency markets are still highly volatile and highly fragmented. When you buy cryptocurrency, you may never know when or when the price will go up or down. The market is not yet regulated, secure or stable. It is also small relative to other traditional financial markets, which means regulators will need time to understand how they want to approach digital currencies.
It is worth noting that many governments understand this. Still, there is something that can stop them. From their point of view, cryptocurrencies are often associated with illegal activities such as buying drugs or scams such as pyramid schemes. These associations make it difficult for governments to regulate the cryptographic space. Because doing so would mean legitimizing an area where criminals operate freely.
Decentralized cryptocurrency system
The cryptocurrency is based on a decentralized system. It means that it has no central authority or sole administrators, such as a government or a bank. As a result, many countries are not interested in regulating the cryptocurrency because they do not want to lose control of their currency.
Cryptocurrencies have been around since 2009 and have been gaining popularity ever since. Especially after Bitcoin became popular in 2013, its price reached $ 19,000 per coin in December 2017. The main reason why governments are not interested in regulating cryptocurrencies is that they do not know how to deal. them!
Cryptocurrencies still need regulation in some areas, such as tax laws and e-commerce laws. However, there are other areas where cryptocurrencies will revolutionize the way we live today, such as the healthcare industry.
Here doctors can perform surgeries remotely using robots controlled by telepresence technology, without having to go through all those long hours of training required before becoming surgeons. Or it could revolutionize education systems where students can attend online classes while sitting at home. Banking systems where you no longer need an ATM because all your transactions are done through your phone.
The cryptocurrency market is too volatile for the authorities to consider regulating it. Volatility can be attributed to hype, speculation and manipulation. In addition, the high volatility of cryptocurrencies makes them unsuitable for the trade of retail investors who do not have the necessary skills and knowledge.
Cryptocurrency markets are also susceptible to fraud because they lack regulation and transparency. An example of this is Mt Gox, a bitcoin exchange that went bankrupt after losing $ 850,000 worth of $ 480 million. In addition, there have been cases where hackers have stolen digital exchange coins or wallets when people buy crypto with a credit card. In addition, the reputation is tarnished due to piracy when they convert the cryptocurrency into a fiat currency or any other cryptocurrency.
Control over money
The cryptocurrency market is growing at an alarming rate. More and more people are looking for ways to exchange their cryptocurrency. That means charging it in fiat currency and making payments anywhere in the world. However, governments are struggling to keep track of how much money is flowing through cryptocurrencies and where they are going. The problem here is that there is no central bank or institution to control all transactions involving cryptocurrencies.
You can move your money around the world quickly and easily with cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) or Litecoin (LTC). You can also regain access at any time, so you don’t have to worry about banks closing your account if you owe them money.
In addition, the cryptocurrency provides real-time transparency showing all transactions made in your network ledger. It allows consumers full control over their funds without any interference from third parties, such as government authorities that regulate how much they spend on goods / services online. “
Payment processing system
Most governments have strict rules regarding money laundering and financial crime. This is because they have seen how these things can affect their countries over time. So, for example, when you send an international bank transfer, there are a lot of checks that have to be done before the money goes anywhere.
These checks include documentation and proof of identity, and verification of the two banks involved in the transaction. If you want to make a payment or transfer money with credit cards, it will take three days. Sometimes more so that your funds reach your bank account.
In addition, some banks also charge extra fees for making these transactions each month, which can increase quickly if you do them regularly! Cryptocurrency solves all these problems by allowing anyone in the world to access their funds without the need for any paperwork! You can only use cryptocurrency exchanges like Coinbase right now, without any problems.
The cryptocurrency will not be regulated by the authorities
This article showed that cryptocurrency markets are part of a much bigger picture. The financial system is not yet able to process transactions at such a high rate. This is one of the reasons why governments are not interested in regulating them. Therefore, cryptocurrencies will not be regulated until they become current.