While some political and corporate leaders have been eager to invest in and adopt cryptocurrencies, others are entirely hostile. Turkish President Tayyip Erdogan recently declared outright war on the Bitcoin network. President Erdoğan: "We Are At War" President Erdoğan expressed his opposition to Bitcoin in a meeting with Turkish students this Saturday. The event comes after one of them asked if the country's central bank would adopt cryptocurrencies. Erdogan responded with total rejection: "We have absolutely no intention of embracing cryptocurrencies. On the…
Scams, Ponzi Schemes, and The Crypto Market
Scamming is the elaborate process of taking advantage of uninformed individuals or organizations and using their ignorance to get away with their money. Scamming has always been prevalent anywhere money or wealth is involved. Since scams are everywhere, the area of cryptocurrency and blockchain is no different.
Cryptocurrency scamming techniques vary in their degree and complexity. A new and enthusiastic investor is easily dejected by the overwhelming amount of information they need to consume to stay ahead in the space.
Almost all the experts and advocates of Blockchain and cryptocurrency unanimously agree that the best way for the sector is for governments worldwide to step in and start with regulation. With regulations, the investors would feel safe, wrong-doers will have a sense of fear, and the entire space would be free from ill-intentioned entities.
The Role of Regulation
Understanding the cryptocurrency sector, its technicalities, implications, and origins are something every prospective investor should do. But we all know that preaching is one thing and actually following it is another. That is the main reason why non-informed investors all over the world are scammed or robbed of their earnings – because they blindly trust someone who claims he understands. There are almost always laws, task forces, and regulators who try to keep the system in check by policing the financial sector from all kinds of wrongdoings.
But the same cannot be said about the cryptocurrency sector. Most people now are open to considering it as a part of the financial system; billions of dollars’ worth of value is traded and generated almost every day. Yet there is no sign of a global unison on how to regulate the space.
Governments all over the world are majorly concerned with the cryptocurrency aspect of Blockchain technology. They understand the possibilities and advantages of blockchain technology, and many openly embrace the change. But when it comes to cryptocurrency, almost always, they turn their heads in disgust.
The reason can be that a “cryptocurrency” directly challenges the monetary authority within their country. It introduces a new form of monetary value for daily use to compete for the already existing sovereign currency. Governments most usually perceive this as an act of hostility rather than an economic innovation.
Regulation is the Final Step to Global Adoption
One of the more important and long-term solutions to this problem is the call for Regulation Worldwide. Since most countries’ cryptocurrency sector is still considered a grey area, most hackers take remorse. With no regulation, hackers think they can use that to take advantage of non-protected users. They stay safe as there is no one to catch them even if a complaint is made.
There are no laws that deal with such scrupulous practices in countries where there is no sufficient regulation. The problem faced by all the governments worldwide is that it is virtually impossible to control the use, propagation, and adoption of cryptocurrencies. They can try to slow down the propagation by asking intermediaries to disassociate themselves with anyone found to do so. Isolating the users so that the “virus” doesn’t spread.
Thus, we urge all our users to lead the stride in the adoption and regulation of cryptocurrency and blockchain, as it is the best case for all of us to stay safe and protected.
Sovereign Interest in Regulation
Over the past 4-5 years, the legislation of cryptocurrencies, blockchain, and similar instruments has become one of the most important regulatory authorities tasks.
In most cases, regulation acts as a safety net for the public. Bitcoin and blockchain are merely a decade old, and most people who try to get into the ride have a bare minimum or nil understanding of the technology. Regulations will provide a barrier to scrupulous practices and protect the interest of the consumer. Well planned regulation will ultimately differentiate cryptocurrencies into different architectures based on the function they serve.
It is in the best interest of regulators to try and form a regulative guideline for using and innovating in cryptocurrencies and blockchain. Jurisdictions that have managed to form a basic framework are reported to benefit from innovation’s inflow hugely. Blockchain start-ups can pop up in places where legislations are hugely favorable. Malta, Estonia, Switzerland have all seen immense traction in this case.