Cryptocurrency grew significantly in 2017, and then the regulation discussion came up. Many believe regulation is necessary to ensure it will remain more stable in the future. On the other hand, many who have invested in the cryptocurrency world would reject the idea of any regulation.
It is very difficult at the moment to picture exactly how this will work, as the crypto world is so new.
The blockchain platform that cryptocurrency transactions are carried out on prides itself on being open to everyone. It is, however, essential for cryptocurrency to embrace more regulation, to ensure the growth and maintenance of it. Without regulation, cryptocurrency will remain niche, not be considered a genuine method of trading currency which could also be exploited by criminals.
Avoid laundering of money, fraud, and crime
A crypto world with little regulation is vulnerable to money laundering, fraud, and scams. Money can be laundered in the crypto world to avoid paying taxes. This could become a lot easier at the moment, with sports and horse racing betting sites using cryptocurrency, as criminals could use a popular betting activity such as horse racing that has many events per day. Gambling is traditionally a method used by criminals to launder money.
No regulation in the crypto world would mean it is near impossible to detect when criminals are using these platforms to hide and launder their money with gambling. Hence the reason why horse racing betting operator Unibet has taken the strategic decision to wait and see how this aspect of the market progresses.
Give it integrity in the world of finance
If cryptocurrency is going to a major currency that is commonly used in transactions worldwide, it has to accept regulation. Most crypto coins are valued in US dollars or other fiat currency, showing how much it currently relies on traditional currency. Cryptocurrency is going to exist alongside fiat currencies for some time yet, therefore to give it more credibility and integrity in the financial world, it has to be regulated like our traditional currencies.
Not accepting regulation means the crypto world is likely to stay relatively low-key and not considered a viable method to carry out a transaction.
Bring about trust
Carrying on from bringing integrity, more regulation will also lead to people trusting cryptocurrency. Cryptocurrency is frowned upon by the majority of governments worldwide. To bring about trust, cryptocurrency has to be recognized by governments worldwide, and this inevitably means it will have to be regulated. A trusted currency will lead to growth and investment in the cryptocurrency world and it will help attract new audiences.
We are already seeing a number of online gambling sites employing cryptocurrency.
A well-regulated currency will increase the popularity of activities such as betting on horse racing that can offer excellent value. The odds offered by crypto coins are likely to be far better than anything else on the market, and regulating cryptocurrency will help to reduce the volatile nature of it, which will increase trust.
Written by Guest Author @ https://coingape.com/is-more-regulation-the-answer-for-cryptocurrencies/ July 30, 2018 Guest Author