I asked AI to Predict How Governments Will Respond to the Growing Crypto Markets in the Aspect of Regulations: Prediction of Crypto Regulations by AI
We are going to talk about different scenarios for the prediction of crypto regulations by AI. We asked AI and GPT to predict how governments will respond to the growing crypto markets in the aspect of regulations.
Experts mention different reasons for government efforts to establish regulations on the crypto market like financial stability, security, and even terrorism but we believe that taxation is blockbit Dailytheir most important desire.
Why do Governments Regulate the Crypto Market?
There are lots of different reasons behind the willingness of governments to do regulations on the crypto market we will explain some of them here.
Governments claim that they must prevent any probable illegal activities. These activities may be money laundering, terrorism, or robbery.
On the other hand, governments like to protect the nation from scammers and fraud people. Unfortunately, there are many thieves in this market who try to steal investors’ money every day. That’s why the prediction of crypto regulations by AI is important for market participants.
Crypto and digital currency have financial values and people tend to use them for financial transactions, exchanges, and daily uses. Hence, crypto can alternate traditional financial situations all over the world and it was foreseen that governments would interfere in the market.
Human life differs from animal life, known as jungle life, by rules and laws. If governments allow a large market like crypto to be not regularized, it can affect other aspects of society and increase the possibility of ignoring laws by people.
What Is the Current State of Crypto Regulations?
Cryptocurrency was totally free of any kind of regulations and rules when it started the appealing journey of becoming a prominent financial system in the world in 2008.
Initially, nobody could guess that Bitcoin, Satoshi Nakamoto’s son, could go further expectations and rise to 69,000 dollars. But, it happened in 2021 and shocked the world.
Even a large portion of human beings who did not know the name of Bitcoin became interested and the crypto market spread in unexpected amounts.
It was the spot where governments got motivated to walk in and change the condition because of the reasons mentioned in the previous section. We will talk about possible events in this regard in the shape of the prediction of crypto regulations by AI.
Today, everything is changing fast and laws are coming day after another. Many exchanges are obligated to do KYC verifications and companies are asked to provide salary revenues.
In America, the biggest economy in the world, the SEC is restricting the presence of different exchanges and companies. The US is trying to establish the most serious regulations on crypto markets.
So, it is very important to know possible scenarios on the way and adapt them sooner than others to the loss and increase the revenue.
In this article, we will illustrate the possibilities that AI suggests as a prediction of crypto regulations. We asked AI to predict how governments will respond to the growing crypto markets in aspect of regulations.
Different Scenarios as Prediction of Crypto Regulations by AI
These are some possible events ahead that may occur for crypto and will affect prices highly.
Meanwhile, we found awesome pieces of information and updates on regulations and SEC issues HERE.
Keep watching the market having these scenarios in mind and avoid risking positions in all situations.
1. Exacting Regulations on Exchanges
It is not only a possible scenario for future regulations but one of the first actions that governments committed toward crypto’s growth.
Binance and Coinbase face issues in this regard, especially in the United States of America, and made changes to coordinate with new situations.
KYC is the core of these regulations and exchanges will be obligated to store the information of users securely and share it with security bodies in governments.
It will be in contrast to basic notions and desires of blockchain networks and the Web3 revolution in the internet. Privacy was the most bolded feature of blockchain that was advertised in large portions.
But with new regulation laws, all those wishes will be demolished under the feet of governments.
Recently, Kucoin has been forcing customers to complete KYC verification. It is a big movement back toward centralized exchanges.
2. Global Standardization
Global standardization is the second possible prediction of crypto regulations by AI. All individuals know global organizations like the UN. Those are old organizations that were founded to protect human being rights.
It can be expected that large economies try to convince all countries all over the world to create a new global organization to control and discipline the cryptocurrency exchanges.
There are lots of charming predetermined goals behind these organizations like protecting investors’ liquidities, preserving money laundering, and unified regulations for all persons in the world.
But it cannot be denied that all these activities to create global and united organizations around cryptocurrencies will aim to gather tax for the government.
It will be hurtful to say this fact, but we have to say this is against basic notions of blockchain networks again and will destroy all hopes of those who want complete freedom for internet users.
3. Developing Previous Laws
The third foreseen scenario is the prediction of crypto regulations by AI is deepening the laws that were determined before.
In this scenario, governments will not set new regulations and goals but they will try to change old regulations and promote them for more extreme restrictions on the market.
Of course, it will help the crypto market to develop faster and become more popular because these rules can facilitate the cooperation of governments and active digital companies in the crypto land.
We can say it will be the best possible scenario for investors who do not like to be watched by third-party players of the game. Because the current regulations are not able to watch all the details of the blockchain network.
In other words, regulations will not be added in other important sub-domains of the crypto industry. So, privacy-concerned investors can enjoy their freedom for a while.
Unfortunately, this is not a beloved scenario by governments and there are little chances for it.
4. A Thorough Ban on Crypto
Let us be clear! This is totally impossible. this is a big claim but it wouldn’t be an absurd one.
Banning the crypto market cannot be removed from the list of prediction of crypto regulations by AI, but it would not be practical in the real world.
When we look at some countries that tried to ban the crypto market at all we see that this cannot be done; not only in big pictures, but also in details.
The nature of being decentralized will not allow third-party intermediates to interfere with the network and ban it at all. Meanwhile, there are many benefits that encourage governments to let the crypto go on.
On the other hand, a complete band will lead to the emergence of a black market which will increase the risk of money laundering.
Also, peer-to-peer decentralized exchanges will grow in a banned market and there will be no control on these kinds of marketplaces.
5. Self-regulatory
Self-regulatory is the best option that is placed at the bottom of the list as the fifth and final scenario of prediction of crypto regulations by AI.
To be honest, it is the best possible method for controlling the dangers of the cryptocurrency market, but it does not seem to be the plan of governments for this market.
By self-regulatory we mean that governments will take themselves away from the market and allow internal institutes, built by experts of the market, to manipulate the laws.
Self-regulatory will decrease any possibility of managing or danger of scammers. The market will remain uncontrolled by foreigners and a comprehensive freedom will govern the details.
Same time, these internal institutes know the basics of the market better than foreign parties and can help different participants of the market to bring large amounts of innovations to the field.
But we advise you to forget the self-regulatory possibility for future events. Because governments will not lose the chance of taking advantage of the crypto market. Governments need tax to increase their income and crypto is the best platform for this earning.
Conclusion
Important: we should note that all mentioned possible scenarios as a prediction of crypto regulations by AI are only possibilities. There is no MUST in the market.
It all depends on various situations of different factors like public sentiment, taxation laws, and government treatment.
As the final hint, we should say that governments love tax. So, they will not let the crypto be free as it has been till now.
