The use of cryptocurrency in the past one year has grown tenfold, and it is becoming increasingly complex to understand how each one of them is going to work out. Several countries are now accepting cryptocurrencies with open arms while some are trying to shut it down. However, this year most of the governments have been planning to at least put forward some regulations so it would control the usage and the strength of the cryptocurrencies.
Here is how the regulation of cryptocurrencies working around the world and why consumer protection is an eminent responsibility of the government in it.
Cryptocurrency Regulations in the United States
The United States currently does not have any regulation over its cryptocurrency but plans to do it soon. The Deputy General attorney of the country has said that they’re coming up with a comprehensive strategy surrounding cryptocurrency. In regards to the regulation, the Securities and Exchange Commission has halted several ICOs recently and has warned its investors of the risks involved in cryptocurrencies.
However, the government has accepted cryptocurrency to some extent as the commodity futures trading Commission has allowed the Cryptocurrency derivatives to be traded publicly. The government, time and again, has maintained that they want to make sure that the cryptocurrency is not used for Cybercrimes. They have maintained that a lot of schemes involving these currencies do not fall under the traditional financial system. Therefore, a strategy is needed that would involve representatives from several law enforcement agencies to make sure that these cryptocurrencies are being put to good use. The challenges for the government, however, remains the education and complete knowledge of the working of these cryptocurrencies.
Apart from the US, countries like Canada, China, and India do not recognise cryptocurrencies as legal tender or plan to regulate them to a great extent. On the other hand, countries like Japan and Switzerland have been quite accepting of it. There are also countries like South Korea and Russia which still have not decided about cryptocurrencies. It’s this grey area that we need to tackle soon, to ensure proper crypto justice.
Consumer protection regarding cryptocurrency
The reason why governments want to regulate cryptocurrencies is that the unrelated nature of the same makes many people fall prey to several scams. Many consumers have reported suffering heavy losses new to their account closures on trading platforms. Apart from this, the Bitcoin crash recently brought the most number of complaints from the consumers. Therefore, it becomes essential to have policies that protect their interests under all circumstances.
The government wants to preserve the idea of affair economic space where the interest of the consumers, as well as the business products they consume, are protected. However, the revolution in the cryptocurrency area promises to bring the power of the money in the hands of people who use it. Thus, controlling the to and fro of the income by fair means would be very difficult. As a result, the government wants to take efforts that are more public-oriented and offer the right solutions in case of any damage.