Why does cryptocurrency need regulations
I think a very important topic that should be discussed in the cryptocurrency and blockchain space is the topic of cryptocurrency regulation, which is been left in uncheck. Or it has been discussed but I think it was not duly deliberated.
On the other hand, different people always seem to have different views whenever the government brings up the subject of cryptocurrency regulation. As for their reason, they fear that the Government does not like Cryptocurrency as it empowers citizens, but that's a topic for another day.
Regardless, I among many would still believe cryptocurrency needs proper regulation if there is to be wider use and massive adoption. The adoption of cryptocurrency has indeed increased over the years and still increasing, but the truth is that there is still a larger population that has yet to understand what cryptocurrency is and how to be a player in the cryptocurrency world.
Just as Binance CZ CEO stated, "blockchain and cryptocurrency platforms need to align with policymakers and regulators to come up with certain regulatory measures which in turn promote adopting of cryptocurrency, as well as user security and privacy."
I wasn't able to cite the above statement as I read it in an article in which the author didn't cite his source
Now you might not agree, but here's why I believe cryptocurrency regulation is needed:
Cryptocurrency regulation could help eliminate some risks. Considering how volatile cryptocurrency can be in terms of price, of course, dealing with it could be risky. But there are other risks that surpassed price volatility; An individual can just decide to create a token and market it without having good intentions rather than lining the pull and leaving investors clueless.
Many have fallen victims to rug pulls. Am sure almost everyone has read or heard about the recent SQUID token massive rug pull. Many of our authors here have written about it. (You can also read all about the SQUID token here authored by @MintDice and here authored by @scottcbusiness )
This rug pull left investors devastated as they have lost their savings.
And this lead me to believe Scams as such, and crypto crimes would be diminished or lessened if there is a regulatory body in place governing cryptocurrencies.
It is no longer news that many people have been ripped off using different tactics. May it be through airdrops or hacks. All of this could be lessened if there are global regulations and policies governing cryptocurrencies.
In doing so, the cryptocurrency world will be safer for new players, and the veterans too as innovations increase as does adoption.
What do you think?
Thanks for stopping by to read my article. I sincerely hope the article is worth your time. And please let me know if you disagree (or if you do agree)
