The cryptocurrency industry may soon be under full regulation by regulatory bodies that have sought to control it a long time ago. It seems these bodies are actually mad at the design and function of the system and will do anything to get their hands on it.
It would seem though that the industry is helping regulators to find reasons for regulation every single day. Although the industry is still evolving and advancing in technology, more stringent measures are being put in place by the government to ensure the industry comes under the full regulations which are mainly focused on exchanges that have become prime targets of hackers.
The more hacks there are, the more regulators will reach out to bring exchanges under their control. This is kind of funny because the cryptocurrency industry has existed for 8 years+ without being noticed until the phenomenal price hike of bitcoin in the year 2017 that caught regulators attention.
The price hike didn’t only get the attention of regulators though, it also caught the attention of hackers and fraudsters who now use various means to get cryptocurrencies from crypto owners. Financial crimes in the industry have increased with increasing value of cryptocurrencies generally, which also attracts regulators. The industry is therefore in for an imminent regulation if these trends continue.
It is sad however because everyone in the industry knows what the result of full cryptocurrency regulation will be. Crypto exchanges must therefore take some steps to protect the industry while regulators find ways to fully regulate the industry to reduce its abuse.
First of all, crypto exchanges must establish clear guidelines to guide their activities universally in terms of issues involving security, customer identity and so forth. This should help to reduce the incidences of fraud and improve the reliability of exchanges as investors are giving up on cryptocurrencies because of insecurity.
The case of market manipulation must also be dealt with. Exchanges artificially raising the prices of cryptocurrencies is an evil that must be curbed. There must be policies in place to curb this in order to avoid government policies that may end up doing more harm than good in an attempt to regulate the market prices.
The fall of major exchanges like Mt Gox and several others that have been hacked tells any keen observer that cybersecurity needs to be beefed up. Sensitive information that grants access to investors’ funds must be properly guarded at all cost. No amount of money spent on security is more than the damage that occurs if there is a hack.
Crypto Exchange Platform Zebpay has just shut down operations because of cease regulation orders from RBI, Countries like india and China with massive Population seems to be having issues on how to curtail Crypto Regulation which mostly leads to Unresearched Ban Rules.
Their population sizes are the main challenges of figuring out regulation that works for everyone while still maintaining control of such a large economy.
The World is evolving and technologies like the blockchain technology has been loved by millions of people and is continuously gaining Adoption and More use cases.
The Market has Been Reacting Positively since the past few days with Altcoins like XRP,LTC and ETH Showing positive Movements.
The post Regulators tighten Grip on Crypto Industry as Market Booms appeared first on ZyCrypto.