Why We Should Look Forward to Greater Cryptocurrency Regulation

Cryptocurrency is, as of 2019, still a largely unregulated market. There are few rules that determine proper behaviour and little — if any — laws that can punish bad actors.

Jul 13, 2019 · 4 min read

Despite a handful of notable exceptions, such as regulations set out by the SEC in the US, and Malta’s “blockchain island” approach, it’s still very much anyone’s game — a gold rush, if you will.

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The fact that regulation is inevitable might sour a number of people’s moods, but it shouldn’t. There are plenty of positives that will come with oversight; here are a few of them.

Scam Prevention

Laws and regulations will help reduce the number of schemes present, because of two reasons: the threat of prosecution, and systems being put into place that make those schemes more difficult to perform. In turn making it a lot easier and safer to invest and trade in cryptocurrencies.

Limiting Market Manipulation

This also means that the value of a coin is often independent of its actual technology or potential — it’s all about making money, which can result in actual world-changing tech getting left behind or forgotten.

Regulation can keep this from happening. Not only will coin purchases be decided by belief in technology, it will help keep the crypto economy safer as a whole.

Greater Legitimacy

Once cryptocurrency has greater regulation in place, it can enter the mainstream world fully. Businesses won’t be as hesitant to accept them as tender because there’ll be more robust protections in place.

Preventing Financial Crimes

Since cryptocurrencies are largely anonymous, with the only identifying quality being the wallet address, people can still pretty much go on with their underhanded and illegal activities.

Legislation and regulation can put a serious dampener on those activities. Money laundering becomes a lot more difficult when the authorities have better means of checking wallets for suspicious activity. It can also serve as a way to protect you from theft, should the worst happen to your wallet address.

Clarifies Cryptocurrency Taxonomies

The world of Bitcoin and other altcoins is so young that a proper dictionary or taxonomy doesn’t exist yet. This also makes it difficult to manage tokens and coins that transfer from one country to another, as the regulatory gaps between different entities make it difficult to see which laws actually apply, and where.

More Investor Interest

However, with regulation comes safety. No one wants to get on a rollercoaster that seems poorly maintained, but many are willing to leap onto a thrill-ride if they trust that the company behind it has their interests at heart.

Environment Stability

Fortunately, regulations go a long way towards stabilizing the cryptocurrency environment. Much of the crypto-market’s volatility owes itself to traders being able to do what they want with little accountability. As regulations come in, underhanded strategies will dwindle, and those that do remain will be incredibly difficult to pull off. This in turn leads to more consistent numbers, and thus, a safer environment for traders around the world.


If you want a brighter future for Bitcoin, or any other cryptocurrency, you should be rooting for laws to pass — and soon.

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