Bitcoin regulation continues to become one of the most heated and dreaded topics that adopters and entrepreneurs have to deal with. It is like the taboo in the modern society. However, many view the need for a regulation of the digital currency in order for it to go into the mainstream and be accepted by a larger number of people across the globe.
While the need for a regulation seem to be the logical step to further push Bitcoin’s journey to a wider acceptance, many believe this defies the very nature of the first-ever cryptocurrency.
Bitcoin, to the uninitiated, is a peer-to-peer cryptographic currency that functions within its own network over the Internet. It is decentralized, which means that it is wholly controlled by every single Bitcoin user in the world. Thus, no one will be able to manipulate it, not even the financial institutions.
Given its powerful features that prove to be more beneficial to the users, it becomes a threat to the current financial systems. However, proponents of Bitcoin regulation also cite the highly volatile nature of this digital currency as a reason. Price fluctuations expose bitcoiners to higher risks of losing the value of their money. This fact may, therefore, surprise new adopters, leaving them confused as to how their recently bought coins now have a lower value.
Some countries have already taken actions to address the growing trend that is Bitcoin, and not all turned out to be in favor of the digital currency. For instance, Russia is bound to ban the use of Bitcoin, China’s central bank expressed its disapproval of the cryptocurrency while the primary financial institution in Bangladesh said using Bitcoin is a ‘punishable offense’. Likewise, Bolivia and Ecuador banned the coin.
However, regulating Bitcoin should not translate to an outright ban. Some countries, in fact, are forming a regulatory board to ensure that the use of Bitcoin will be monitored and safer for the people. Japan is looking optimistic with its Japan Authority of Digital Assets (JADA) while Canada has already enacted a law that regulates bodies that use Bitcoin.
Nevertheless, any kind of regulation is met by violent reactions. Even the state of New York, with its BitLicense proposal, is frowned upon even by Bitcoin companies. After all, why is there a need to control this digital currency?
On a different note, some government bodies believe in the true nature of Bitcoin, and therefore, opted to skip monitoring it. For example, the California state legally recognizes it as a form of money.
Bitcoin regulation, indeed, is a complicated topic that holds a very important aspect in every bitcoiner’s lives. After all, this is where the future of Bitcoin lies.