The Need for Cryptocurrency Regulation
With the rise in popularity of cryptocurrencies, there has been a high call for regulatory frameworks. Most governments and financial institutions acknowledge the potential of digital currencies to disrupt traditional financial systems but at the same time show concern about fraud, market volatility, and consumer protection. Analysts say a regulatory framework is inevitable in order to innovate in a stable environment while protecting investors. This may involve, for example, setting anti-money laundering practices; issuing guidance regarding how to make transactions transparent; and providing guidance on ICOs. How to find the right balance between promoting innovation in the crypto space while still providing strong oversight aimed at protecting consumers and ensuring the integrity of financial markets continues to be the subject of considerable debate.
