Is There A Way To Regulate Cryptocurrencies

Blockchain and cryptocurrency is currently the talk of the town, and there is no doubt on the fact that both these terminologies are extremely amazing but on the other hand, let’s face it, they are dodgy as hell too. Dealing in cryptocurrency requires some serious skills, and above everything, you have to make sure that you are always updated about the rates and the ups and downs of the currency you’ve bought. We’ll cut it short for you, cryptocurrency is a risky business, you either become a billionaire over time or you lose it all that you have so it all depends on what type of a person you are. If you are someone who likes to play in risk then yes, blockchain and cryptocurrency is your field.

Now one thing is for sure that cryptocurrency is here to stay for a long time which is why the need of the hour is to find ways through which cryptocurrency can be regulated. Meanwhile, we need to be careful that those regulations don’t destroy the future of crypto.

Here are a few ways through which government can protect the consumers and regulate cryptocurrency, all at the same time;

1- Regulating the exchanges

We all know the fact that all the foreign exchange flows through the currency houses or banks and what happens next is all the choice of the user. Now, the same rule should be applied when it comes to cryptocurrencies. Especially if you are a professional trader then make sure that all your transactions run through a regulated exchange. The only thing required for this process at the moment is that the banks should now open accounts for exchanges so that all the traders can pay the taxes and combat with the illicit behavior in a better way.

2- Clearing up of the tax situation

The need of the hour is for HMRC to clarify it’s stance. You see the thing is that blockchain requires a token to work and that token is traded in the form of fiat which means that there will always be a chance to earn profit which is why clearing up the tax situation is necessary. There has been a big change in the crypto industry, and that is the applicable tax on the crypto to crypto transactions. Now, a lot of people out there are yet not sure if the tax is applied on them too, so the thing is that all of this tax situation needs to be cleared up and the government should specify and clarify the traders about the taxes.

3- Need of a framework for an ICO

Know this that an ICO has its own place in the cryptocurrency market and it can be difficult for you to know if the ICO in which you invested is legitimate or not. Now, in this situation obviously you need to make some vast research. Right now a lot of people out there are just blindly investing in their ICOs without realizing where all their investments and money are going but this time when you think of an ICO, you better check out ICObuffer and all other such platforms that are for real that can actually give you some profit in return for your investments.

4- Let the exchanges manage the ICOs

The major benefit of letting the exchanges manage the ICO is that this way there will be a specific central point of control and above everything, there will be reduced illicit activity. The only thing is that if an exchange wants to offer any ICO then it should first be meeting the certain criteria of that ICO. In other words, the team and all the tech of the exchange should first be audited, or their background must be checked properly in order to avoid any inconvenience later.

It took years and years for Satoshi Nakamoto to create Bitcoin in the year 2009 and well, this is a clear indication that yes, cryptocurrency is not as easy to handle as it seems. We’ve mentioned the ways through which crypto can be regulated so if you are looking for an answer then know that yes, there are chances of the regulations to take over.