Cryptocurrencies and regulations have been in a long-standing stagnant relationship, with insecurities brewing from both camps. Regulation of cryptocurrencies has been an idea which has been fantasized about a lot by many bodies, especially government bodies. Cryptocurrency’s sudden rise was still a mystery to many, and not being able to tell which direction its development would go, was a thorn in the flesh of many critics.
Cryptocurrency’s smooth sail into the world of many possibilities would, however, turn into a bumpy ride. Scams, theft, and hacks have plagued the crypto industry from time to time, which has seen investors lose over millions of dollars’ worth of investment.
With price volatility already being a menace in the crypto industry, these additional problems again led to the resurgence of the regulation idea. To many, regulation at least would keep cryptocurrencies in check, and prevent any price fluctuations in the market. Others also saw cryptocurrencies, as a significant way which government bodies could crack down on cryptocurrencies.
For some time now, the idea has been the subject of many arguments, but with the current state of the crypto market, the idea of considering regulation looks to be shooting high. With last year’s horrific performance of cryptocurrencies still lingering in the minds of many, calls for regulations are increasing day by day, but the real question is, whether regulations can help cryptocurrencies get back of their feet, without investors losing a chunk of their fortunes.
News about governmental bodies looking to regulate cryptocurrencies hasn’t been scarce this year. In the early stages of January, the Texas Department of Banking published a supervisory memorandum which provides updated regulatory guidance, regarding the treatment of cryptocurrencies under state law. Although the memorandum stated that bitcoin and cryptocurrencies have “sparked new discourse on the nature of money” and the “transferability of value,” the document stressed on the fact that, it was aimed at expressing the department’s interpretation of the Texas Money Services Act as it pertains to activities involving cryptocurrencies under existing statutory definitions.
Still, in January, the New York State government set up a digital currency task force that will investigate legislative and regulatory recommendations as well as many another issues for the rapidly growing cryptocurrency market and the use of blockchain technology.
Crypto Investors, for some time now has seen regulations as a devised way to halt the development of cryptocurrencies but with the current unpleasant reality unfolding right in front of their eyes, the notion that regulations could do more good than harm is given serious consideration.