Why Will Crypto Be A Revolution Of Regulation For Investments?
Crypto, everyone is familiar with its incredible profits and gains. With the enhancement of digitalization, the currency is also going in electronic form. One of these forms is Cryptocurrency.
It was primarily begun in 2009 by a programmer, and you know, just for fun. He doesn’t even have an idea what he started. Also, now the allover crypto worth is around $2,882,216,836,07924. Which is equal to the GDP of some small countries.
Numerous investors earn billions after the growth of cryptocurrency. A few years back, some people thought crypto was a cheap form of currency but now, their mouth is sealed by the uprising of its value day by day.
How Is Crypto Current Missed In Terrorism And Illegal Transactions?
As there is no role of the government of any country or any supreme authority to supervise the regulation of crypto, it is being used in several illegal transactions for terrorism and crimes.
Generally, whenever any online transaction takes place, some supreme authorities keep an eye on it and have an in-depth knowledge of sender and receiver, whereas, in crypto, the currency is in the hands of numerous owners. That is why it is really difficult to track the main planner of the illegal transaction.
Nowadays it becomes a trend to perform online translations through cryptocurrency for illegal endeavors like terrorism, Naxalism, crimes, thefts, and laundry. All these activities take place from the Dark web ( unseen depth of internet ).
Many fields are continuously growing due to untrackable funding through crypto. Some of these unlawful activities are mentioned below:
- Terrorism: Everyone is aware that terrorism is just a political stunt by powerful nations to stop the growth of the growing country, which they are worried about.
- Money Laundering: Billions of worth black money are renovated into white through crypto. Nations like India face a lot of loss from this.
- Ransom: Ransoms are taken in the form of crypto, which is an untraceable transaction and the criminals are free.
What To Do To Track And Prevent Illegal Transactions Through Crypto?
Cryptocurrencies like Bitcoin, ChainlinkLINK, LitecoinLTC, dogecoin, and many more are some most circulated cryptocurrencies all over the world. They are wrapping more than 70% of cryptocurrency. Previously it was easy for security forces and secret agencies like RAW and FBI to track online transactions but after the circulation of crypto, it is next to impossible for them.
Now, it becomes a need to perform and take some necessary steps to tackle the issue. After many meetings of nations and even in UNO, there has been a decision that every nation has full leverage to manage the issue according to their preferences. However, the decision is given in the hands of the nations themselves.
In 2018, after seeing the increasing no. of illegal transactions through cryptocurrencies, regulations are made by nations to prevent it.
What Is A Regulation In Crypto?
Regulations in crypto are some set of rules and laws decided by the supreme authority of the nation to track the transactions of cryptocurrency. Moreover, it is one of the most essential steps that need to be taken to maintain the law and order of a nation and protect it from being jeopardized.
Regulation by India (RBI)
RBI is the Financial governing body of India, which regulates the circulation of currency and all capital issues. In India, transactions in cryptocurrencies are banned in 2018, but earlier in 2020 the same will be ordered by the Supreme Court to continue trading and transaction in cryptocurrencies
But the traders and investors need to pay the tax decided by the RBI on every crypto transaction. Even the transaction is completely tracked by the government.
Risk and opportunities in regulation
Crypto is the future of digital currency. It’s believed that by 2050 all currencies will be eliminated and only crypto will be in circulation. In 2020, the Supreme Court of India decided to make crypto investment legal in the Indian stock market. Also, now the investors can freely invest in them.
There are some opportunities for a group of people by the regulation these are:
- Fresh or new investors will easily invest in crypto as there is no need to study the history of crypto.
- Is easy to invest and withdraw your capital from crypto. Even in India, some online investment platforms provide free brokerage fees for crypto investment.
- They are safer and prudent than other investment opportunities like NIFTY 50 and the Stock market.
- It will contribute towards the GDP of a nation because of its transparent investments and high tax.
Are There Any Risks In Regulating Crypto?
With some opportunities the regulation of crypto has some risks too, these are as follows:
- The market of cryptocurrency is unstable. It can crash anytime as the backbone of crypto or major investor has the power.
- As crypto is the digital currency it can be hacked and stolen by hackers.
- Even in some parts of the country, the cryptocurrency is not known and people deny receiving payment in the form of cryptocurrency.
- A huge group of people in India are still uneducated and have no idea what digital currency is?
There are many other market risks, as of now the whole transaction in India takes place in the form of Indian currency only, whether cash or UPI. If crypto is regulated the standards of the market must change and it is the biggest disadvantage of regulation of crypto.
It led to an increase in the number of frauds and conspiracies. The introduction of crypto leads to the unevenness of the stock markets. Also, people started to invest in cryptocurrency only which causes other stocks in the market to crash and face a massive loss.
NFT stands for “non-fungible” tokens that can be in the form of videos, audio, games, or even pictures. NFT must be regulated later than another cryptocurrency because the value of NFT is not the same for every person, it is just like a barter system. Moreover, those who want them will pay more, and the one who does not want it will not pay for them.