Here’s Why Policymakers Have Been Reluctant To Regulate Cryptocurrency

The growth and popularity of cryptocurrencies have undoubtedly been one of the most significant financial developments in recent years. 

Surprisingly, regulators initially shied away from enforcing any regulatory measures on this new technology, thinking that it was a mere fad that would not survive the test of time. Apparently, they were very wrong and now cryptocurrencies are sought out as a strong alternative and a safer one. Read on. 

No Regulation For Cryptos: Here’s Why!

Nicole Sandler, head of digital policy at Barclays, argued that the apparent reluctance of policymakers was actually deliberate during a recent panel at the Citi Digital Money Symposium in London, which discussed crypto regulations in the United Kingdom, Europe, and the United States.

Related: Bitcoin and Ethereum Will Explode Fueled by Global Banking Crisis; Experts Unanimously Agree – Coinpedia Fintech News

Sandler explained that the policymakers did not view cryptocurrencies as a serious threat to the traditional financial system. Instead, they believed that crypto was a fad that would fade away over time. As a result, policymakers did not put in place regulations to govern the use of cryptocurrencies.

“I think one thing certain policymakers have said is that they left this market to do what it wanted to do because they thought it would essentially die,” she said. “And it hasn’t died, it’s grown, it’s grown, it’s grown.”

However, in recent years, as cryptocurrencies have gained significant traction among investors and businesses, this view has changed. Regulators and lawmakers were compelled to reevaluate their approach to cryptocurrency as a result, and there is now a growing understanding of the necessity for regulation.

The current state of Crypto Regulation

Around the world, the rules and regulations for cryptocurrencies are very different. Countries like Japan and Australia have created detailed guidelines for handling cryptocurrencies, while China has taken a more restrictive approach by banning certain activities. The United States is still figuring out how to regulate cryptocurrencies, and various organizations have different ideas on how to proceed. Some African countries have prohibited cryptocurrencies altogether, while others are more accepting. 

Overall, it’s still unclear how crypto will be regulated in the future, but we can only hope for the best. 

It has also been made clear that in the absence of proper regulation, several prominent exchanges and firms have announced their departure from the USA. This issue must be addressed before more make similar moves. 

Also Read: Banking Crisis Looms: Is Crypto The Future Of Secure Investing? – Coinpedia Fintech News