Regulating Cryptocurrency: Yes or No?
Elusive cryptocurrency may sound, we cannot deny the facts that at some point, there has to be a regulation. But founders of cryptocurrencies worry that regulation may remove the essence of what cryptocurrency is for. Let’s weigh the factors.
Control Against Money Laundering
Money laundering comes with many forms that even big banks are spending thousands of dollars just to identify money laundering activities. Come to think of it, money laundering is happening since world war, yet continues to happen up to this day. Cryptocurrency is a more complex system. It is more likely that money launderers would turn to cryptocurrency to continue their dirty laundry without getting caught. They could move transactions swiftly across the glove with offers & coupons. Regulating cryptocurrency could help prevent illegal activities such as money laundering.
Tax System Integration for Better Economy
Let’s be honest, we all hate to pay taxes. If we are talking about regulating cryptocurrency, imprisonment due to tax evasion from using crypto coins is also possible. It’s already happening in China and could also happen in the West. On the brighter side, regulating cryptocurrency will help the economy and the government in running the country. Purchases from online shops like lazada and zalora will be taxable using crypto coins. There are some downsides of this, especially on the side of the public. However, if we are thinking long term, regulations might bring cryptocurrency in a better state.
Fair Approach Designed to Benefit Majority
When we think about regulations, we associate it with restrictions. But since cryptocurrency is above the standards of conventional currency, perhaps we could think of regulations designed to benefit the majority instead of the chosen few. What the public worries about adding regulations to cryptocurrency is control. Designing a law that favors the majority while keeping the essence of this exchange requires deep evaluation.
Control is not all bad. But passing regulations concerning cryptocurrency is not an easy subject. If cryptocurrency is going to be a roadmap for criminal activities, surely control is needed. Experts of cryptocurrency suggest focusing on balancing the impact these regulations may cause. It can be done by creating a whole different authority focused on preventing crimes instead of changing the integral principles surrounding cryptocurrency.