Since the early days of Satoshi Nakamoto’s Cryptocurrency idea and revolution, there has been an influx of new users, websites, columns, businesses and individuals heavily interested in the new world order and these changes notably came with beneficial and consequential adjustments.
The teeming population of individuals and companies that garnered interest in Crypto rose to an extraordinary rate in the past three years and this development caught the eyes of different financial regulatory bodies. Rightly so, the government and financial bodies had to come rid the space of greedy and selfish individuals that are hellbent on amassing wealth for themselves rather than providing premium and equitable services using Blockchain and Cryptocurrency technology.
The recent events where users were getting scammed by project teams or losing their precious fiat for Whitepaper models had to be curtailed at some point, the reason various regulations are now being put in place by several governments. This is just starting out and in the next few years, drastically rigid procedures would be in place to aid naive individuals or investors in their decision making when it comes to investing in cryptocurrency projects.
ARE REGULATIONS NOW COMING INTO CRYPTO?
This is a question that has been asked so many times due to the nature and vision of Blockchain and Crypto. Satoshi Nakamoto, Bitcoin’s creator and the Pioneer of Blockchain technology had no intentions of any future government regulations on his precious technology when the genesis block of Bitcoin got mined in 2009 (https://en.bitcoin.it/wiki/Genesis_block) but latest developments suggest it’s much needed and very fast.
Bitcoin’s creator operated with a popular pseudonym to circumvent any and every government jurisdiction that could indict him for creating an unregulated financial system at the time and this has grown over the years to be the norm of this space. This was also a card played by him to avoid the regulation of cryptocurrency and it has worked so well since inception.
With regulations flying in here and there, things are now changing and the norms of crypto are taking a huge shift. This was hugely emphasized after the resounding $40M Bitcoin hack on CZ’s Binance, and further suggestions of crypto communities to Re-org the Bitcoin network (https://bitcoinik.com/cz-wants-to-reverse-bitcoin-is-it-possible/)
If such network Re-org had taken place, that would mean a once unregulated decentralized system had taken several steps backwards on its vision to accommodate the cold hands of influential individuals that could perpetually turn it to a plaything for themselves, but luckily, many enthusiasts and believers kicked against this at the earliest thought.
BENEFITS OF CRYPTO REGULATIONS
One of the benefits of regulating crypto is to provide better financial protection for users, individuals, and firms exploring the space on a daily basis. With different government financial bodies instigating strict rules on projects and businesses using Blockchain and cryptocurrency technology, the number of individuals bound to lose money has been drastically reduced.
The fact that governments can now track crypto transactions to an extent seems like a welcome development to a few sections of the crypto society and the normal world. The danger of money laundering and the repercussions that follow suit (Terrorist group fundings, etc) has been seemingly mitigated to an insignificant rate.
Further expansion on this is guaranteeing the excitement of the entire populace as various legal frameworks have been put in place to curb bad actors who got into this space to milk novices to their fill. Anyone trying to create a cryptosystem today would always do well to align his promises and model with any working or viable financial institution due to the fear of being brought to equitable justice if they fail.
CONSEQUENCES OF CRYPTO REGULATION
At this point, it is safe to say that Satoshi Nakamoto’s vision of an unregulated financial system is sparingly fading away. The norms that bound this technology since its inception has been hugely depleted in the last few years and there is sadly no turning back from this as governments are now exploring this technology for national use, and this screams massive regulations.
The ideas which bitcoin and crypto were borne out of; which are decentralization, anonymity, uncensored, unabridged, and a P2P public ledger financial system might get abolished at this rate with these various regulations. We might get to a stage where transactions would no longer be confirmed or mined on various blocks by miners at different locations but carried out by government-owned financial organisations.
This doesn’t bode well for a system that has been touted as a suppressor of government powers on citizens. It is gradually playing into their hands and it might only be a matter of time before the drastic change that would transform every vision of Satoshi Nakamoto kicks in.
Its all good for a system that has crippled so many financially while enriching others to get regulated, but when it gets to a stage where standards and history have to take a dive to accommodate changes, then things switch up very quickly.
We are left to assume that the future bodes well and an ultimatum gets reached on how to further expand this space with subtle regulations here and there, but things aren’t looking so well on the regulatory aspect of cryptocurrency and Blockchain technology.