Cryptocurrency Regulation: The Road Ahead

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The fate of the dot-com industry in the early days of the internet makes many people feel that Bitcoin and other digital coins are going the same way. However, the cryptocurrency lovers refute this argument by saying that digital coins are pretty different from the earlier dot-com industry that badly failed. Then the detractors claim that the current valuation of the digital coin remains wild.

However, the people in the next camp feel that this is just a passing phase, and it takes the digital coins a few months to return to the top. It is a reality as we have seen Bitcoin going up to 64K USD in March, and then in June and July, it went down by half, reaching 30K USD. Again in November and now in December, the cost is 67K USD. Now, we will be dealing with the moot issue – how digital coins are regulated; let’s check on this:

How does the regulation come into the picture?

You can know about it on sites like Now, the regulation came into the picture when the people of the digital currency domain were seen coming up with the idea of IPO or initial public offerings designed only to bring in more money from different investors. Instead of coming up with specific contributions coming over the crypto-based changes, we see people receiving tokens. There is a vast range of ICOs that seem to work fine.

However, with many more options in this field that have emerged, venture capital remains on the top. The people who remain conscious about this job talked about the role of the SEC and other agencies in regulating the ICOs and other things happening. It is primarily because many ICOs prove to be a big scam in many ways.

Regulation of ICOs has become vital since it is moving faster. One can find an excellent meteoric rise of the coins, and the SEC is seen giving a good signal that has added an excellent concern regarding people who had to face fraud. It has further given a good reason to gain a massive growth of ICO in the previous two years. Most government-based regulators are becoming too apprehensive that too many people are now classifying the ICOs and helping people govern the tax.

One of the critical concerns people feel with the regulators is reducing the ICO used for illegal activities like terrorism and money laundering. Many critics raised their objections and questioned the legality of the coins. The governments and central banks also voice against the coins, but they have failed to reap any outcome.

Some experts say digital currencies often showcase an altogether new asset category. It may be very different and remain the critical tokens of people with different functions like securities.

However, this may sound so true when checking the utility tokens. In a broad sense, speaking about utility tokens, we can see many more people now investing with their value. The modern-day tokens are now categorized differently. The issue seems too strict, and many more tokens are acting smoothly. We see the digital currencies acting like instruments of betting and voting when we speak in terms of different security issues.

Diverging Directives

We see the legal aspects of controlling the ICO taking shape; however, most governments are unsure about the next step. They fail to understand how they are going to govern this domain. With the help of forecasting the SEC guidelines, the future in the US alone proves out to be a daunting task. But when we look at the standard view, the asset remains world-class, and it proves out to be par with the US securities laws. On the other hand, we can find some aggressive posters by the SEC. The fact is you need to remain very much clear about this confusion regarding ICO. It will help make things easy for different governments with divergent views on the same.

We have examples of China being closed and the US being open apart from Switzerland being liberal. Thus the regulators have to check this aspect before coming to any common conclusion.

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