Is Global Crypto Regulation Even Possible?
At present, the 'legal status' of cryptocurrencies varies between countries, especially with the continual progression of we've got the technology associated with it. However, Within the opposite direction, some countries have even gone to the extent of banning the use of cryptocurrencies altogether, as is observed in UAE.
Therefore, can cryptocurrency ever be a plausible way of financial transactions on a worldwide scale therefore, how will law squeeze into this, given its 'unregulated' nature?
What exactly is 'Cryptocurrency'?
'Cryptocurrency' was created predominantly as a virtual way of financial exchange, in which 'cryptography' is used so to secure all financial transactions made via digital cryptocurrency.
Cryptography is essential for securing digital financial transactions, especially as a defence against 'cryptanalysis', in which is a technique of analysing computer so to reveal what might be hidden within them. For example, a cryptanalysis's main objective would be to termed as much about data prior to it being encrypted.
However, among the key aspects which makes cryptocurrency stay ahead of other kinds of currencies, especially digital, is that it utilizes a 'decentralised control' via 'blockchains', in which provides a public financial transaction database, as opposed to the more prevalent 'centralised' digital currency or central banking systems.
So, do you know the legal concerns?
The possibility of a digitalized global economy by having an unregulated decentralized economic climate brings by using it many concerns, specifically for the legal sector.
For instance, Law on the national level faces challenges alone using the regulation and compliance with other laws in other countries – therefore, a globalized unregulated economy can bring with it many misnomers, by which can lead to mass economic and financial chaos on a global scale – with one of the key threats being tax evasion and insufficient financial transactional transparency.
Can global cryptocurrency ever work?
If cryptocurrency ended up being to be regulated to some greater extent on a worldwide scale – could it alternatively become a positive way to enhancing unity and global international relations to a greater degree, instead of an unregulated threat to national societies?
For instance, law can positively prompt using cryptocurrencies by ensuring the important thing role of the legal sector within the regulating financial transactions, bringing national law into a new cosmopolitan limelight.
As nations compete to become new world leaders within the 'FinTech Market', probably the alternative means to global leadership is really a unification of nations within global regulated digitalized economic climate such as cryptocurrencies. However, it appears that at the moment, the world is far from this idealist technological dream.