Crypto can’t be regulated with existing knowledge and here’s why
Crypto can’t be regulated with existing knowledge and here’s why
Regulation

Crypto can’t be regulated with existing knowledge and here’s why

By Giorgi Mikhelidze - 12 Sep 2020

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While there are some regulations that helped the field to further develop, the knowledge that today’s society has about crypto is simply not enough to come up with something that can lead to ensure the safety and fair principles for crypto. 

Regulations are very important in every sector and they should come from a great deal of knowledge to not end up restricting several fields. When coming up with regulations, countries should keep in mind that in the end, the economic gain should be the thing to look for. 

The sector is developing and there still is a lot to learn about it. For instance, the prices are ever-changing and the regulation that works for a certain period of time can not work after some time passes. 

Australia is a great example of adopting regulations that work, but it still is not certain if the regulations will be the same in the coming years. As the market changes, there is a need to drop off the regulations that once worked, and come up with new ones that will make the market fair for traders, miners, and those who are just interested in the field. 

Crypto is very actively used in many fields already, and restrictions can affect the world economy very badly. For example, FX trading with Bitcoin is very popular, but if there were regulations that restricted them from using crypto, it would make crypto-depended traders lose their opportunities.  Forex trading is very popular around the world, and crypto is an active part of it. What forex traders do is that they sell a certain type of currency, while, at the same time, buying another one. 

Crypto offers people something that the rest of the currencies are lacking and it is the safe, secure, and private environment that it has. If we take all of these away from Crypto, it will be left with only its price and that is not the ‘innovative part’ of crypto at all. 

Most of the people depending on crypto use it because it offers never-before known privacy. The waiting time is minimal and unlike more traditional banking methods, crypto can offer clients the ability to make transactions without worrying that their steps are being followed or checked at any moment. 

Regulations in some countries

There are countries like Australia, Japan, Switzerland, etc. that work very hard to make the field as fair and stable as possible. They have some regulations, but most of these regulations focus on the development of crypto, and they are designed especially for their own markets. Adopting those regulations in other countries can lead to plenty of problems. 

The thing is that when it comes to crypto, because of the diverse attitudes in different countries, it is impossible to come up with the best and universal regulations. There are some countries where the crypto is simply illegal, this makes finding the best solution impossible. 

Crypto regulation, knowledge is the key in this type of situation

The more knowledge we have about crypto, the easier it is to control it. Regulations should work to develop a specific field, not to make it less important or degrade it. 

There are some countries that have a very friendly attitude towards crypto and they work every day to make this currency popular in their countries, but at the same time, there are some countries that are simply afraid of this innovation. 

These kinds of diverse attitudes towards the field once again prove that there simply is not enough information and knowledge for the field to have regulations that will do more good than harm.

The future of regulation

Crypto is developing and changing every day. The development is so fast that finding a perfect regulation for the whole sector sounds to be impossible. But the future can bring a lot of knowledge and information about the field. 

Knowledge is important in every field, but crypto needs a certain type of understanding. Using it can be a risky investment, but if you have a piece of information about it, you could end up being hugely successful. 

But, people should be afraid of regulations. The thing that is scary is regulations without knowledge, that hurt everyone. In the end, regulations should be designed so that everyone can benefit from them. 

When crypto was at its first stage, the safety and independence from the central governments was something that the crypto-enthusiasts were looking for. The best part for them of Bitcoin was that it was not backed by the government, and it was free from sanctions and regulations. But this does not mean that there should not be any regulations. 

Regulations can work well when they are made with a lot of care and knowledge. Using the experience of countries like Japan, Australia, and Switzerland can be a good idea. They have managed to come up with regulations that can work well both, for state and for crypto users. 

In the end, the most important thing is the knowledge that we have, and for now, there is not a lot of it available. There are some organizations that work very hard to spread the word, and attract as many people as possible. 

Regulations should be designed especially for a specific market, and specific thing. Taking the experience of one country and implementing it into another will never work.  

Giorgi Mikhelidze
Giorgi Mikhelidze

Giorgi is a Georgia software developer with two years of experience trading on the financial markets. He is now working to spread the knowledge about the Blockchain in his country and share all of his findings and research to as many crypto enthusiasts as possible.

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