CRYPTOCURRENCY REGULATION: affecting the progress of cryptocurrency

THE aftermath of a roller coaster end to the crypto year 2017 bore forth enthusiasm and increased demand for utility and autonomy for cryptocurrency enthusiasts and experts.

Contrary to conceived belief of uninterrupted all time highs, early 2018 saw a shocking 50% decline in major coin prices and a huge dip in total coin market cap hence leaving a few newbie’s and cryptocurrency users doubtful.

The above dip also had in unison seen massive sell offs, increased spread of media FUD, government ban cum regulation, reoccurring cases of hack, government ban, ICO scams and also predominant calls for taxation of cryptocurrency earnings with each of these factors taking its negative effect on the coin market.

At this time and as in all realistic financial spheres, stability in line with slow and steady growth seems to have returned to the market after a few bloody weeks and red markets. In recent times Government and a few financial regulatory powers have taken a snare at the potential pros and cons of this new currency wave powered by blockchain technology.

In a bid to curb excesses and as claimed ensure guidance, regulatory measures are been drafted as benchmark for varying cryptocurrency niches; from trading, mining, initial coin offerings and more all aimed at safer exchanges and a healthier market.

A few of these regulations include verified registration of cryptocurrency account holders information to curb money-laundering, terrorism, track records and animosity of coin exchange transactions as emphasised by the American Securities and Exchange Commission.

The People’s republic of China remains at the top tier of cryptocurrency regulators with an outright ban of ICO’s, clamp down on all crypto related bank accounts, total shut down of all cryptocurrency mining activities and most drastic ban on internet access to all cryptocurrency related activities.

Also the European Union has made public plans to regulate cryptocurrency amid security concerns, tax evasion, and risk factor for investors, operational failure and manipulation.

However, it is yet to be seen if these regulations would affect progressively on the cryptocurrency market as most countries and financial institutions have given no stern legislation or final verdict on its usage and exchange.

Taking a sneak peek at the US congress meeting, it is opined that blockchain and crypto technology are the future and hence its industry should set itself regulation guidelines in line with a “DO NO HARM” approach which promotes decentralization and freedom for cryptocurrency investors.

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