Crypto Frontline

Could Regulation Have a Positive Impact?

Could Regulation Have a Positive Impact?

Could Regulation Have a Positive Impact?
February 24
15:20 2018

The greatest fear cryptocurrency investors have in 2018 is related to regulation. Since the beginning of the year, all major cryptocurrencies had been down by more than 50 % from last year high and that shows the trust investors had is much lower, but also that the cryptocurrencies bubbles and Bitcoin bubble had burst.

Is regulation really that bad?

To answer that question, it really depends on the government. Some might come out with a package of laws that could potentially help the industry. We already see signals of cryptocurrency regulation in the US, South Korea, and other countries, but that does not mean the laws will hurt digital coins.

What people that own cryptocurrencies need to understand is that at the present time this industry does not work like an ordinary business. There is a strong need for a regulatory framework that will contribute, among others, to the diminishing of the current scamming companies that are not bothered by anyone and that are running with clients’ money.

Also, there is a huge problem with taxation. People that manage to generate profits with cryptocurrencies, whether is through mining or price differential, find it hard to declare their income. Simply because central banks and governments do not recognize cryptocurrencies as actual money. Also, because cryptocurrencies have appeared recently, there was no time for the government to come out with laws that will set out some proper rules so the cryptocurrency industry will function properly.

People are scared about this issue and they have reasons for that. Since some countries proved to have an aggressive approach to cryptocurrencies, like China and Singapore, cryptocurrency owners have dumped their coins, which led to the selloff that started since the beginning of 2018.

The year 2018 will be full of changes for the cryptocurrency industry and some countries will most likely come out with a proper legislation. So far, South Korea is one of the countries that seem friendly to digital coins, but we expect others to follow as well. You don’t need to worry because regulation will make cryptocurrencies a reliable business.