The cryptocurrency market seems to be a major concern for most countries. The fact that this is decentralized finance and is not regulated is a serious issue. To this effect, there are a number of countries that have started to take stringent measures to control cryptocurrencies. India is the first country to make the bold move of attempting to regulate cryptocurrencies like Bitcoin. All companies in India that are dealing with cryptocurrencies are now required to disclose such transactions in their balance sheets. This move by the Ministry of Corporate Affairs is aimed at making sure there is transparency in all cryptocurrency dealings.
All the companies that have started trading in cryptocurrencies have to show the profit or loss of the virtual currency. In addition, they would be required to declare the amount of cryptocurrency they are holding. The details of all deposits, withdrawals, trading, and investments in virtual currencies need to be declared as well. The government of India is acting in response to calls from various agencies like the IMF on the regulation of cryptocurrencies. This is a great step in the right direction and this may help in the regulation of the cryptocurrency market.
The European Union has 28 members which it controls and seems to have an upper hand in this process. The ongoing discussion will take shape and certainly bring a revolution to the operations of the cryptocurrency world. In the United States, the Virtual Currency Business Act was formulated by the Uniform Law Commission, which is a non-profit. The Act was aimed at unifying the state laws such that entrepreneurs can be clear on the parameters of the virtual currencies. While the law has been introduced to 4 states, it is only in Rhode Island that has shown commitment to this law.
Regulating Cryptocurrencies is Balancing Act
While there are genuine platforms like Big Money Rush where you can trade without worry, there are risks in the crypto market. Scammers have taken advantage of the fact that this is an unregulated market and have ripped off so many people. The good news is that there are many international bodies who keep working on ways and policies to regulate the market and this will be a great achievement. Getting transparency in relation to crypto investments will be a good way to make sure that crypto assets and investments are kept in check. Most experts and analysts believe proper regulation will be a major boost for cryptocurrencies as they will be accepted easily.
Currently, it is estimated that there are over 7 million investors in India who have invested over one billion dollars in cryptocurrencies. As such, the government cannot impose an outright ban as this would affect the economy significantly. This is the reason the Indian government is looking for an easier avenue to control the crypto market. It is impossible to dismiss the traction that crypto has made, seeing that there are big companies like Tesla and PayPal who have embraced cryptocurrencies. As such, there is no country that would want its citizens to fall back on such gains.
From the moment Tesla, through its CEO, Elon Musk announced that it accepts Bitcoin as a payment option, this shifted the cryptocurrency world. There are many companies that are following suit and as such, there is a great need to regulate the market before it is too late. Crypto exchanges are also at the heart of cryptocurrency trading and investments. There is also a need to regulate the exchanges.
With the new measures that are being put in place by different countries and agencies, there may be a solution to the cryptocurrency regulation after all. Steadily, things are taking shape and this will increase the confidence of potential investors in virtual currencies.