The necessity for regulation has become more and more obvious amidst the increase of crypto users around the world.
Innovations we should accept, not reject.
Fast digitalization speed in almost all industry sectors including crypto provides new workplaces and new opportunities for millions of people. This broad process of significant changes for our way of living is also influencing our perception of various fields.
Certain events and concepts are closely tied to certain things and ideas that have been developing in our society for hundreds of years. Such status quo can be seen from the way different sectors work and from the social attitude towards various issues in different groups.
This is an extremely complicated social structure that has been developing over the centuries. However, since the onset of 21st century, the world order that previously seemed perfect, started to fall apart.
The main role in this process play digital technologies and their ability to replace physical effort by the virtual one, making the process faster and more convenient. Efficiency is what really makes the innovations of the 21st century fascinating and appealing. The wide range of their functions continue inspiring public as the digital world is rapidly growing.
Not so long ago it was impossible to imagine the world where stationary phones would be replaced by tiny smartphones. Nevertheless, we live in the era of smart technologies and gadgets. You can select any type of digital accessories, such as smart TV, watches and even home technics, of these make our lives easier as our daily routine is also changing fast. Shift in the financial sector towards crypto. Hardly any of the industrial sectors were so far from digital technologies as finances. Major players of this field have always feared innovations and novelties.
Many considered them as a threat to the well-adjusted system mechanism. As Z generations are approaching its full establishing, the industry of finances have realized the necessity for some radical changes. The youngest of our societies are guided by the innovative process. They were born and merged in the era of technological progress, and, as a consequence, are accustomed to this process. They seek for new products, new services that are more convenient and faster. This is one of the main reasons why all the commercial banks develop web or mobile platforms ready for servicing. So the times when we survived without them look like distant past. Nevertheless, all of such spaces that represent virtual bank branches are something completely new for us. Just 10 years ago we could hardly imagine neo-banks or mobile wallets.
Nevertheless, 2009 has become the largest breaking point for the financial industry of the new millennium. This marked the true revolution and the advent of the biggest modern innovation – cryptocurrency. Bitcoin that regularly appears in the countless global headlines, has become the first decentralized virtual currency in the world. Launched in 2009, it looked quite inconspicuous until its price surged and exceeded the mark of $10 000 in 2017. While comparing the trading strategies for cryptos with other financial assets, it is almost impossible not to notice the clear similarity between them. Thus, types of crypto traders that usually restrict orders or stop-orders, look very much like the FX order types used by traders every day in order to delete certain risk or automate it.
Nevertheless, this can be just a matter of time, and then traditional trading methods transfer into crypto, stocks and currencies will become the carriers of this “exotic” label.
Global crypto regulation. The growing amount of people use cryptos all around the world. The wide spread and usage of them represents, on one hand, a big achievement, and on the other, a big threat. Such crypto assets as Bitcoin position themselves as decentralized, transparent and anonymous currencies. While making transactions with BTC, one may, of necessary, delete the mark that can be traced and leave only the transaction identificator that contains no personal data.
So there is no surprise that many of the criminal organizations began using virtual currencies for illegal purposes. This has attracted the attention of national governments, especially after the significant growth of BTC prices seen in 2017.
In general, each type of financial regulation, no matter whether we mean monetary, fiscal or regional, exists for a number of reasons. Most of the issues mentioned in these legislations are implied in order to prevent illegal actions, scam and other kinds of fraud. Others are closed tied to the market and aim for stimulating the local or international economy. Certain parts of these legal acts does not look like traditional restrictions.
This should not be a surprise as virtual currencies represent a special field that requires for specially developed approach. Still the connection between the reasons why such rules are introduced and how they are applied, is obvious. Today we can clearly see that the crypto regulation follow the template of financial acts that have existed for centuries.