The Dangers Of Regulation

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Cryptocurrency: The Dangers of Regulation Research suggests that government and large financial institutions should not be allowed to regulate cryptocurrency, because eventually it will change cryptocurrency to mirror our current paper currency system, and ultimately remove the freedom and anonymity associated with the use of cryptocurrency. The use of Cryptocurrency has become more prevalent across the globe. It makes sense that regulation would be the next step in the process, but if not done with a desire to break from a traditional approach large financial institutions and governments will end up establishing the standards and determining the value. At that point cryptocurrency may still carry the label of a decentralized form of…show more content…
Russia, China, Canada and the United States have all regulated Bitcoin differently, and no country as of yet has completely endorsed Bitcoin. While Bitcoin may be the most well-known crypto currency, there are several other decentralized peer-to-peer currencies such as, Blackcoin, Dash, Coinye, Peercoin, and Litecoin. In all there are over 700 varieties of cryptocurrencies currently available. Cryptocurrency is still at a very early stage, where many of today’s leaders do not quite understand the currency. It appears everyone is waiting for someone to make the first move. There are several concerns that prompted discussion of regulating cryptocurrencies. One concern is the use of cryptocurrency exchanges, which facilitate virtual currency transactions and exchange to denominated currencies. Virtual exchanges have proved extremely difficult for law enforcement to monitor for illegal activity. The U.S. remains particularly concerned that cryptocurrency will pose added challenges to combating terrorism. The exchange of money via virtual networks is seen to attract “cyber-criminals” which makes detecting acts of illegal funding extremely difficult. The concern is if adequate controls are not implemented, terrorist groups may successfully finance their illegal operations in the U.S. or elsewhere. One can easily imagine how the cryptocurrency industry could develop into an exclusive source of funding, serving the needs of already illegal
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