Cryptocurrency regulations often ride the wave of panic attack across the fans of decentralized economy. While few regulators strongly appreciate the usage of cryptocurrencies, many others are suspicious and thus initiating the ban.
Governments must regulate not ban cryptocurrencies
Doctoral Researcher Jai Singh who is a sectional Lecturer in Finance with the renowned institute, ICMA ( International Capital Market Association Centre) is advising the government to be more optimistic.
Regulators should look at effective ways of encouraging the use of blockchain-based currencies, rather than enforce a ban and drive them underground. He kept on suggesting; “That will determine a lot for the coming year,”
One important to point is that amidst the downfall of crypto prices, crypto enthusiasts have increased from 18 million to 35 million over the last year. The government should realize that these 35 million users are in the context of a ‘downturn into the market’. And as such, what could be the volume of users when the market actually grows!
Yesterday coingape reported a coverage that stated FSB (Financial Stability Board), an international body that monitors and review the global financial system has recently appreciated cryptocurrency and said that the virtual currencies are not a threat.
The note was added by Reserve Bank of India (RBI), an Indian central bank in a report released in connection with cryptocurrency regulation in the last week. FSB’s comment reads as follows;
”The FSB has undertaken a review of the financial stability risks posed by the rapid growth of crypto-assets. Its initial assessment is that crypto-assets do not pose risks to global financial stability currently,”
Cryptocurrency Supporters Demand Clarity and Sensible Regulation
Besides Singh, in late December 2018, Binance CEO also spoke about the sensible crypto regulations that can accelerate innovation. However, he added how few countries are still uncertain about the cryptocurrency industry.
— CoinGape (@CoinGapeMedia) December 19, 2018
Unlike crypto friendly nations, Bitcoin and other cryptos are presently banned across many countries including Russia, Vietnam, China, Taiwan, Bolivia, Kyrgyzstan, Ecuador, and others. Pointing out to countries like Malta and Singapore where cryptocurrencies are neither banned nor completely open, Singh urged regulators to follow the footsteps and support the mechanism of decentralized economy.
With Institutional Products, 2019 Will Be a Better Year
2019 is likely to bring many other projects by market leaders like ICE, Nasdaq, Goldman Sachs, fidelity, and these projects will likely to ‘strength the market’. As Jalak Jopanpura said in an interview with CNBC yesterday, digital assets exchange like Bakkt backed by NYSE will likely to make 2018 a more useful year for cryptocurrencies.
— jalak jobanputra (@jalak) January 3, 2019
Observing the fund security and custodial solutions, future markets and SEC’s clarity on crypto to be announced, Singh concluded:
“As transaction monitoring technologies, surveillance, and KYC systems become more sophisticated, it will be challenging to claim that cryptocurrencies are in any way more exposed to criminal activities and money laundering than fiat money,”
Will Indian Govt. pay attention to requests made by fellow countrymen is an outcome we eagerly await, but banning a technology because it is not completely understood makes no sense, rather regulation might be the way to look forward.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com