Do Crypto Needs Government Regulations?
In 2017 we have seen ICO boom where most of the projects were showing a piece of paper named Whitepaper and raising tons of money and promising people that their project is the next revolutionary product and it will gonna change the world and will bring more transparency in the system.
But soon after the bull market there comes bear market and all the projects vanished leaving investors with their so-called revolutionary tokens that have no value in the present day. 95% of projects are down by 95% in value.
This made retail to stay away from the crypto market as most people have lost money up to 90% in the bull market of 2017, their trust from the market was vanishing slowly and gradually. Retail was burnt at that time, it was a pure gamble market.
So the point is how retail will again come to the crypto market? How they will be protected? How cryptos will be mass adopted and when? The answer is Crypto Regulation.
Why Regulations are Important?
Taking care of all the points in the above sentences — For mass adoption of crypto, we need regulations by Government that will bring more trust among the retails and will protect investors from the bad actors in the space.
There can be many reasons how regulations can be helpful for this nascent stage financial technology but it should be reasonable and responsible, some of them are —
- Mass adoption — Many people afraid to hold crypto because of the uncertainty by the Government about Crypto. If we want crypto to be accepted in day to day lives then it certainly requires Government regulations.
- Technological Developments — More and more innovators will come forward that will strengthen the development of new technologies.
- Limiting illicit payments — Regulations will reduce the use of crypto assets to be used for illegal transactions and also helps in reducing cyber-attacks.
Recently we have conducted a poll in MrcryptoIndia Telegram channel about Crypto Government Regulations, got 58 votes and out of that 43 % of people don't want government regulations in the cryptocurrencies.
Cryptocurrencies promote the idea of decentralization & the total decentralization structure cant be achieved if Government will regulate crypto. But the question is if the Government doesn't interfere in the cryptocurrencies then what's the guarantee that investors will be protected from scams? How people will believe in this new Financial system?
So what do you think? Should it be a responsible and reasonable regulation on crypto by Government or no regulation?
Discuss with us on telegram group