Cryptocurrency is a new technology that has many questions and few answers, which is why governments around the world are trying to regulate it.
The government has no regulatory control over cryptocurrencies. This means that they don’t have as much power in terms of regulation as we do think they do.
Decentralization Keeps the Government Off Crypto
Cryptocurrencies are the hottest new technology in the world. And yet, although governments around the world are taking an interest in regulating these innovative new tools, none of them have taken action just yet. Why?
Governments don’t typically regulate cryptocurrencies because they are decentralized. This means they rely on peer to peer transactions and do not require the support of a specific government. There are also some countries that have banned cryptocurrency altogether, but this is rare and usually done in response to money laundering or fraud cases.
If you’ve been following the news from the crypto world lately, you know that governments around the world have begun putting policies in place regarding blockchain technology. Yet their decisions aren’t unanimous. In fact, there’s a lot of debate among different nations about crypto regulation. So why does everyone seem to agree on one thing: cryptocurrency is not going away any time soon.
Crypto is Here to Stay
There are many reasons why the government does not apply crypto regulation. First, regulators have not yet figured out how to deal with cryptocurrencies and have no idea how to classify them as they are not backed by a central authority, they are autonomous and they are not issued by a government-owned entity. Second, because there is nothing to regulate, regulating cryptocurrency would be like putting a crown on top of an elephant.
The short answer is that the regulatory framework for cryptocurrency was created by the private sector, not the government.
The United States government has not interfered with the regulation of cryptocurrencies. In fact, in this session, we will discuss all that is needed for crypto to receive SEC approval.
The Gov’t Cannot Interfere with Cryptocurrency Regulation
The government doesn’t regulate cryptocurrency because they don’t understand it. The fact is, we have seen the rise of bitcoin and other digital currencies because they are decentralized. They are not controlled by a person, corporation or country. This means that no one can have control over them. The only way they can get control is if they regulate it however this then takes away the whole purpose of its existence.
The cryptocurrency market is a free market in which anyone can invest. However, there are no government regulations that have control over any aspect of the market. This is because no state has explicitly stated that they recognize a cryptocurrency as a legal tender or regulate it as such.