Bitcoin and digital currency legislation; good or bad?
Legislation in the digital currency space is an issue that never seems to be solved. The main question is that if a law is passed for this area, will it be for the benefit of this industry or to its detriment? Cointelegraph in an article answers this question recently.
Some proponents of digital currency insist that legislation is good for the industry. Debating that it paves the way for a major acceptance of digital currency among consumers and businesses. On the other hand, some believe that legislation for this innovation will guide to an unpleasant end and suffocate it. This will be to the liability of digital currencies as opposed to digital currencies against Fiat currencies, which have the full support of central banks.
We see that both scenarios come true in the real world. Switzerland has gained a standing for being a digital-loving country. The two organizations that deliver banking services to digital currency customers are licensed by the Swiss Financial Markets Authority, which is undoubtedly a major milestone.
Certainly, the Swiss government’s positive perspective towards digital assets Facebook’s decision to set and register the non-profit Libera Association was not unaffected by in the country. Statistics indicate that China’s blockchain industry is benefiting from this positive procedure. An “open attitude towards digital currencies.” A report that the value of the top 50 Swiss blockchain companies in the first half of 2019 doubled to a total of $ 41 billion confirms this claim.
In contrast, we have the other side of the coin. The United States has been very strict about legislating digital currency. And is creating obstacles to the project for fear that Liberia might weaken the dollar or even threaten the global economy. Some politicians have expressed strong concern that blocking the development of such innovations will make other countries with worse intentions stronger in the growing industry.
Consider a country like India that has imposed strict laws on those involved in digital currencies. Which could even lead to sentences such as 10 years in prison. Such a tough stance, coupled with the fact that the digital currency business has been completely banned from banking services. It has led to the closure of several digital currency exchanges in the country.
There are also warnings that smart Indian developers and entrepreneurs may spend their abilities and skills in another country. Or in other words, brain drain may occur in that country. This means that the Indian economy will lose billions of dollars in payment. To sprinkle salt on the wound, the government is putting more emphasis on implementing the law. If the law was not introduced to parliament in the winter of digital currencies, and this has led to a prolongation of the period of indecisiveness.
With these interpretations, what are the pros and cons of legislation? Is it possible for this fledgling industry to easily fit in with established financial institutions? Given this partial landscape, in which some countries have embraced digital currencies. And others have shunned them, will the technology become global?
Advantages And digital currency legislation
Well-known proponents of digital currency have been extraordinarily cautious about all aspects of digital currency legislation. Apple co-founder Steve Wozniak has warned that most nations want to exercise as much control as possible to maintain revenue streams.
Others worry that this may harm the two positive features of digital currencies that make them popular. It means to be anonymous and transparent. It is believed that bitcoin and other digital currencies are to be completely decentralized. And separate from the economic infrastructure. That caused the 2007 recession. As a result, introducing a cryptocurrency to the law robs you of some of the freedoms that are so appealing to this asset.
Legislation for digital currency and blockchain startups could also change the way investments are made. Initial Coin Offering (ICO) Despite all its drawbacks, it enables digital currency users with any amount of capital to contribute to projects they are interested in. Gathering future grants in a style similar to securities causes these investors to step aside in favor of people with higher assets.
There is a risk that the rules and frameworks will be difficult to adapt to the skyrocketing speed of blockchain. And digital currency ambitions, and a similar scenario to what happened to Google and Facebook. Which flourished as the Internet began. In this regard, many people in the world of digital currencies are worried that this field will eventually be regulated by officials and people who have no understanding of its underlying technology.
Not everyone believes that legislation for blockchain and digital currency will be catastrophic. Referring again to the initial public offering of coins, some argue that strict restriction would allow vital protections for some investors, just as they do in the stock market. Legislation can also be a seal of approval that many establishments need to invest billions of dollars in the industry and materialize legislation in this area.
Ensuring that the standard for crypto startups is at the same level as the initial public offering of companies can enhance the quality of new projects. However, this process will not be free. The initial public offering of coins, the initial public offering of exchanges. And the offering of securities tokens is often done quickly and efficiently. And strict regulations and disclosure measures slow them down.
There is also an issue called crypto scams. The industry has been introduced to the world for almost a decade. And to this day it continues to address the issue of high-risk, fraudulent investments that cause millions of dollars in losses to helpless investors. Some believe that the fact that these events happen so often and repeatedly demonstrates that the world of digital currency needs more experience to gain legitimacy.
On the other hand, some say that self-regulation is the key to this problem, self-regulation is an opportunity for businesses in this field to monitor each other’s performance. And make sure that everything is facing each other.
What Is anything waiting for currency legislation?
Despite the differing opinions and uncertainty about where the digital currency. And blockchain industry in China will stand in the coming years in terms of legislation when it comes to determining. And estimating the general atmosphere, intelligence, and awareness of prominent exchange managers. Central banks, government agencies, and investors can be very valuable.
The Crypto Finance Conference says its goal is to create sparks of light in the heart of darkness. And it acts as a lighthouse in the turbulent waters of the industry. Experts are ready to answer personal questions, and there are plenty of networking opportunities for participants. To make meaningful connections and delve deeper into areas of personal interest.
The conference, held at the Swiss Alps in St. Moritz from January 15 to 17 (January 25-27), focused on digital currency legislation. The central banks’ approach to national digital currencies was also briefly reviewed. The sessions focused on the Swiss ecosystem and banking-related challenges in the blockchain and digital currencies.
The meetings were aimed at carefully analyzing what will happen on the winding road to legislation. At a time when the digital currency industry is entering a new decade. The Crypto Financial Conference is consolidating its position as a key component of the industry.
