Despite More Than One Thousand Digital Currencies, Regulations are Still Lacking
VP of Digital Single Market, Andrus Ansip, has spoken about the importance of crypto and blockchain technology, explaining the incredible potential behind them and how regulations should not intervene in their development. Both technologies provide enhanced protection of assets, traceability, and trust throughout the world.
Despite the revolutionary significance of the technology, proper regulations must be placed to facilitate the continuous development and ensure that no technology is utilized for criminal activities although a few nations continue banning and severely restricted the new tech.
A major stepping stone for blockchain-tech is expansion and awareness by individuals. Trust in Technology published a report, reporting that almost 60 percent of people are unaware of the technology’s existence. Financial institutes and governmental authorities are the two types of entities utilizing databases and recording transactions on ledgers, although both have been heavily centralized so far. Given that blockchain in nature is decentralized, it removes the need for a medium to provide every individual with ledger copy of their very own.
Crypto-mining is a means of essentially “mining” cryptocurrencies from individual blocks on a chain through complicated algorithms. Currently, the number one reason for extreme regulation of several countries is cyber-crime. Many cases of fraud, hacks, and scams have plagued the industry, turning regulators away from the technology.
Last year, Belarus was the first nation to completely legitimize digital currencies within its borders. Official authorities designed a system for several IT and technology companies to launch their own offices, such as Multiversum, another startup dedicated to launching a strong blockchain program.
Faunus executive, Pavel Bykov, stated that cryptocurrency adoption on a global scale will undoubtedly provide incredible benefits. Bykov supports regulating cryptocurrencies although he doesn’t agree with the tightness of regulations like certain governments have placed.
Instead, he firmly believes that criminal activity and malpractice with the new age technology can be stopped by authorities and still provide the necessary safety of investors. He points to the Czech Republic, the current hub of crypto throughout Europe and states that its success is fueled by the positive acceptance of the technology.
He also noted Ukraine and its development of initial coin offerings and the support provided by the government for any crypto-related business.