To regulate or to ban? Everyone is talking about the cryptocurrency mania and the future of it; some are calling crypto a complete fraud, while others consider it a reliable medium of exchange and the most significant innovation in the financial world. The unexpected growth in Bitcoin (BTC), Ripple (XRP) and other digital currencies stunned investors and regulators, forcing them to look at the factors that are driving prices higher.
While blockchain technologies have solved the problem of time and higher costs in cross-border payments, their anonymous features have opened the doors for criminal activities – allowing criminals to move their wealth through online transactions without showing the original identity. This is because several prominent names in the financial sector suggested a complete ban on digital currencies.
Is It An Excellent Idea To Ban Cryptocurrencies?
Countries like China, India, and Bangladesh has banned cryptocurrency trading and all the activities related to ICO’s to protect the country economy from the illegal movement of money to other countries. China has announced that they will not allow any form of cryptocurrency trading platform, while Indian authorities have ordered cryptocurrency exchanges to stop their operations for the indefinite time.
South Korea has also initially decided to ban virtual currencies; they retreated from their earlier stance and only presented laws that will bar anonymous transactions.The global authorities are yet unsure what to do with these alternative currencies, the idea of imposing the complete ban wouldn’t be easy for authorities considering the vast popularity and several positive aspects related to these currencies.
Regulations Will Help The Crackdown On Illegal Activities
The Bank of England governor presented the firm idea of regulating cryptocurrencies to start the crackdown on illegal activities.
“A better path would be to regulate elements of the crypto-asset ecosystem to combat illicit activities, promote market integrity, and protect the safety and soundness of the financial system,” he said.
Other than illegal activities there is nothing wrong with cryptocurrencies. Though investors have been raising questions about the underlying value and the massive volatility, regulating and expelling criminal activities would allow the markets to correctly price digital currencies on crypto markets.
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