why regulation is bad for cryptocurrency

why regulation is bad for cryptocurrency?

Some regulation is needed, but over-regulation could kill or limit innovation and growth in the crypto market. On the plus side, regulation expands the investor base by bringing more legitimacy to the crypto space.2021年11月16日

Furthermore,Is regulating crypto bad?

Crypto will still likely be a risky investment, like individual stocks, but investor protections could make the market less vulnerable to outside manipulation. Safer markets can lead to more investor confidence, which often means greater value over time. “[Regulation] is important for investor confidence.

In this regard,Why should crypto currency not be regulated?

Push the balance too far in one direction, and the federal government will overly burden cryptocurrency issuers, discourage innovation, and harm U.S. global market competitiveness. Too far in the other direction, and the federal government may fail to adequately protect both consumers and investors.

Furthermore,Is regulation good for crypto?

Regulating cryptocurrencies could be a key element and healthy development for the industry. Greater regulatory guidance, if well targeted, can help reduce speculation among crypto assets in assets, as more institutional and individual investors come in, Khanna says.

Beside above,What are the Cons of regulating cryptocurrency?

Major problems include: Volatility in the market affects a token’s ability to serve as a medium of exchange. High speculation and artificial pricing continue to persist. Many cryptocurrencies still face scalability issues.

Related Question Answers Found

Why does the government want to regulate cryptocurrency?

Governments also want to regulate cryptocurrency because it is a very practical means for tax evasion and criminal activity since cryptocurrency payments do not need the clearing authorities of the traditional financial system to operate.

Can the government track cryptocurrency?

Zoe Thomas: All right, coming up, cryptocurrencies have a reputation for anonymity, but now the government is sending a message to crypto thieves, they can track you down.

What are the cons of ethereum?

Cons: Scaling Issues: Unlike Bitcoin, which serves a single purpose, Ethereum serves as a ledger, a platform for smart contracts, and so on, which can lead to flaws, breakdowns, and hacks.

What happens if you don t report cryptocurrency?

Failure to report If you don’t report taxable crypto activity and face an IRS audit, you may incur interest, penalties or even criminal charges. It may be considered tax evasion or fraud, said David Canedo, a Milwaukee-based CPA and tax specialist product manager at Accointing, a crypto tracking and tax reporting tool.

Can police track Bitcoin?

Although it is reported that most bitcoin transactions (98.9%) are not associated to criminal activity, the birth of cryptocurrency has provided individuals with new mediums to facilitate criminal activity. As a digital currency, there is no way to track or identify who is sending or receiving Bitcoin.

Can the FBI trace Bitcoin?

The trail of Bitcoin addresses allegedly links all that money to online illegal drug sales tracked by FBI and Interpol. If Bitcoin’s privacy shortcomings drive users away, the currency will quickly lose its value.

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