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Home Opinion

Crypto Had Been Free Like a Bird, But it is Time to Clamp its Wings – Regulators

by Judith Riseshine
August 29, 2019
in Opinion
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Regulators all over the world are driving hard on digital assets, conjuring up the scenario of clamping the wings of a bird to prevent it from flying away. They believe that the cryptocurrency has grown to maturity and should be controlled, though it is not in nature of the digital asset to be regulated, the regulators have insisted on control.

In his report, the founder and CEO of AAX, Peter Lin, stated that the cryptocurrency has enjoyed enough freedom to be regulated. He went further to say that crypto regulation is only a healthy approach, the outline of the global regulatory framework is taking shape at the moment and we should embrace it.

Why the Regulators Think Cryptocurrency Should be Regulated.

According to the International Monetary Funds document defining the digital money, the extent of risks and policy recommendations; privately issued Stablecoins is risky to the consumers and financial stability. This can be proven when measured against, Liquidity Risk, default risk, market risk, and foreign exchange risk.

It further stated that digital assets could thrive and draw capital inflows away from fiat currencies in countries with a high inflation rate and weak institutions. Noting that the virtual assets service providers (VASPs) such as crypto exchanges will find it difficult to comply with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT).

This happens because the digital assets are chained in a decentralized technology with stakeholders scattered across the globe.

What should be the Starting Point for Cryptocurrency Regulation?

The Central Banks can protect monetary policy, prevent monopoly by issuing their digital currency, just as it is being considered in China. They can provide issuers of Stablecoin with access to central reserve and approve public sector partnership.

Operating license should be granted based on supervision and VASPs’ ability to profile customers, monitor transactions and report suspicious activities. Industry-standard could be defined to secure wallets and clients data, transactions being done in compliance with Know Your Customer (KYC), AML, and CFT regulations.

Cryptocurrency regulation will increase growth and sustainability in the industry. It is important as well for the digital asset to become the reserve currency and break away from all limiting forces.

Today's Gazette Telegram

Tags: BitcoinCrypto RegulationsCryptocurrency
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Highlights

Elon Musk Loaded Up In Dogecoin before Pumping Bitcoin – Peter Schiff

Crypto Investor Explains Why Cardano will Soon Topple Ethereum

Cardano’s IOHK Rebrands, Enters Final Stages of a Large Government Contract

Analyst Explains why Bitcoin Price Could Crash to $6,400

Online Search for “Dogecoin” Surpasses “Bitcoin” in United States

PayPal Q4 Earnings Report Shows Users More Active after Buying Cryptocurrencies


NewsLogical Inc. is a U.S.-centric firm established in 2019 with the aim of providing resourceful and up-to-date cryptocurrency and blockchain information.

Email: info@newslogical.com

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Dislciamer


Contents on NewsLogical.com are only for informational purposes and should not be construed as financial or investment advice.

Trading cryptocurrency is considered a high-risk activity that requires technical knowhow because digital currencies are generally volatile.

Contact financial experts for guidance before making any cryptocurrency investment decision.

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