Rules are essential in this world. Imagine life without laws and regulations. Everyone does what they want and their actions have consequences. Lawlessness and disorder are oppressive. Because very few would benefit from such a system.
Our ancestors lived without a governing body, but looking back in time, we can all agree that humankind did not live in perfect harmony. , maintaining harmony between regions. A code of conduct to be observed provides socially acceptable standards and provides an appropriate environment for development. Without rules to follow, it would be difficult for a community to live peacefully. People fight over resources. That is why we need regulations to coexist with others.
Not only do we have rules for good and bad behavior, but we also need them for safety. There are some regulations in both manufacturing and service industries. The extent to which governments enact legislation depends on the amount of risk. There are more laws governing certain industries such as food, health, education and transportation than others. Failure to take the necessary steps puts you at risk of substandard service and unsafe products.
Yet untrained and unskilled people take advantage of unsuspecting consumers to pretend to be experts. will cause impact. Therefore, having laws regulating the sector would be a good thing and would have a positive impact on the industry. Any sector must go through a stage where stakeholders and governments develop a strategy for managing the business. In turn, this leads to the evolution and stability of the industry.
Opinions vary on whether the cryptocurrency industry should have some degree of regulation. Since its introduction it has remained unregulated, providing loopholes for fraudsters to explore. Some stakeholders said regulating the sector would go against the spirit of establishing a digital currency. I’m here.
On the other hand, some believe it is the right move for consumers, even if it may slow the development of the sector. Despite calls to make the industry independent and inaccessible to government agencies, that is no excuse for fraud. There are already suspicions that cartels and rogue business actors are using the platform for laundering.
They take advantage of the sector because there are no regulations. Viktar Prakapenya’s view is that the crypto industry needs to be regulated, and he believes it is best to consider the positive impact this move will have on the industry. It provides a suitable platform for all investors to profit from the industry and keep rogue individuals out of the market.
Cryptocurrencies have been around for a few years, but people are skeptical about their future impact on the world. Without regulation in the industry, further development of digital currency is impossible.
For example, several countries have banned the cryptocurrency trading platform Binance in their jurisdictions due to money laundering and tax evasion allegations. It would be best for stakeholders to embrace change in the form of industry regulation. Without service providers setting rules to follow, the sector would not integrate or compete with other financial products.
If unregulated, cryptocurrencies remain in the shadow of financial instruments offered by regulatory bodies. The view that the absence of government regulation is necessary to preserve cryptocurrency freedom is inaccurate. On the contrary, the rules enforce it. We can see this in the tech industry’s example of data privacy.
Companies obtain and use user information without consent, creating a need to regulate this sector. Brands choose what to do in the absence of regulations and standard operating procedures. Strict laws and penalties were required for companies violating data protection laws.
If industry insiders were doing the right thing, the law would have been lenient. Technology companies today have no choice but to comply with the law. Therefore, it is in the best interest of stakeholders in the cryptocurrency industry to work with regulators to enhance the freedom envisioned by the industry.
Crypto industry players’ assumption that the sector could remain unregulated will return to them. It is impossible for the industry to grow any further, affecting its workers, partners and users. Things may be different for cryptocurrency service providers in the future, as governments will eventually make efforts to regulate every industry.
Rather than waiting for that to happen, it would be best for brands to initiate the process. Pioneers are the most stubborn to regulation in their industry and the ones who suffer the most when it happens are the Pioneers. doing. The expert view on the matter is that the laws set out to regulate the industry are likely at fault. Required.
Having an unregulated industry is not a new phenomenon. When the Internet was introduced to the world, not many countries enacted laws regulating its use. Today you can find internet usage in most countries around the world. The cryptocurrency industry will go through something similar regardless of its resistance to regulation.
It is best for stakeholders to lead the process to ensure that the law considers the needs of all stakeholders. Without the right information, legislators pass laws that are unfavorable to businesses in the cryptocurrency industry. But talking to lawmakers and government officials is the best option. All stakeholders participating in cryptocurrency mining and processing must contribute to regulation.
Cryptocurrencies are not regulated across Europe, but countries are taking steps to enact regulatory legislation for the sector. There are currently proposals for European legislators to consider how to protect crypto assets, which will change the way the industry operates.
It is the mission of the stakeholders and it is in their best interests to help Congress craft the best legislation in the crypto market. This will be part of the European Digital Finance Strategy. This initiative will streamline the sector and weed out those who engage in illegal activities through the platform.
Researchers and other global organizations with an interest in cryptocurrencies assist service providers with accurate information on industry regulations. With the convergence of technology and finance, FinTech actors have a role to play in educating others. The entity understands the industry’s potential and the ideal regulatory framework. They believe that trust is needed among all players for the rules to deliver results and drive market growth. Adopt Still, we need to take a holistic approach to the regulatory framework and consider the environmental impact of cryptocurrency mining. Including a requirement to use sustainable technology in processes helps protect the environment for future generations.
Cryptocurrency pioneers are innovators and do not like to work under rules, but the regulatory potential of cryptocurrencies should not be threatened. may be concerned about the profits of Remember that fear can stunt growth. Legislators are focused on creating the best possible environment for all parties, not hurting businesses. Moreover, the government understands the impact of cryptocurrencies on the financial sector and is therefore not against financial interests.
According to Viktar Prakapenia, the ideal regulatory framework should support investment and promote industry growth. Stabilize the cryptocurrency market and protect investor assets. Therefore, industry regulation is not bad as it excludes manipulation from external entities. On the contrary, it will increase public confidence in digital currency and drive industry growth.
About Victor Pracapenha
Victor Placapenha Founder of VP Capital, an investment firm focused on fintech and blockchain companies. Entrepreneurs have developed successful software companies and sold them.
Viktar Prakapenya has contributed to the development of innovative and cutting edge technologies. His expertise spans various fields such as business, information technology and law.