Here’s why politicians have been reluctant to regulate cryptocurrency
The growth and popularity of cryptocurrencies has undoubtedly been one of the most important economic developments in recent years.
Surprisingly, regulators initially shied away from enforcing any regulatory measures on this new technology, thinking it was just a fad that would not survive the test of time. Apparently, they were very wrong and now cryptocurrencies are sought after as a strong alternative and a more secure one. Read on.
No Regulation For Cryptos: Here’s Why!
Nicole Sandler, head of digital policy at Barclays, argued that the apparent reluctance of policymakers was actually deliberate during a recent panel at the Citi Digital Money Symposium in London, which discussed crypto regulations in the UK, Europe and the US.
Related: Bitcoin and Ethereum Will Explode Driven by Global Banking Crisis; Experts Unanimously Agree – Coinpedia Fintech News
Sandler explained that politicians did not see cryptocurrencies as a serious threat to the traditional financial system. Instead, they believed that crypto was a fad that would fade away over time. As a result, policy makers did not put regulations in place to govern the use of cryptocurrencies.
“I think one thing that certain policy makers have said is that they left this market to do what it wanted to do because they thought it would essentially die,” she said. “And it hasn’t died, it’s grown, it’s grown, it’s grown.”
But in recent years, as cryptocurrencies have gained significant traction among investors and businesses, this view has changed. Regulators and lawmakers were forced to rethink their approach to cryptocurrency as a result, and there is now a growing understanding of the necessity of regulation.
The current state of crypto regulation
Around the world, the rules and regulations for cryptocurrencies are very different. Countries such as Japan and Australia have created detailed guidelines for handling cryptocurrencies, while China has taken a more restrictive approach by banning certain activities. The US is still figuring out how to regulate cryptocurrencies, and different organizations have different ideas about how to go about it. Some African countries have banned cryptocurrencies altogether, while others are more accepting.
Overall, it is still unclear how crypto will be regulated in the future, but we can only hope for the best.
It has also been made clear that in the absence of proper regulation, several prominent exchanges and firms have announced their departure from the US. This problem needs to be solved before more people make similar moves.
Also read: Banking crisis approaching: Is crypto the future of safe investment? – Coinpedia Fintech News
