Initial Coin Offering has made the world red for tech start-ups around the world on block chain networks. Revolutionizing and awarding is a decentralized network that can assign tokens to the users supporting an idea with money.Do you want to learn more? Visit original site
Profit-spinning Bitcoin turned out to be a ‘asset’ for early investors that delivered several returns in 2017. Investors and worldwide exchanges in cryptocurrency capitalized on the potential to spell big returns on their own leading to numerous online exchanges increasing. Other cryptocurrencies like Ethereum, Ripple and other ICOs had delivered even better performance. (Ethereum grew 88 times over in 2017!)
While in a matter of days, the ICOs landed millions of dollars in the hands of entrepreneurs, ruling governments initially chose to keep an eye on the fastest fintech development ever that had the potential to raise millions of dollars in a very short time.
Countries around the world are mulling around to regulate cryptocurrencies
But the regulators became wary as the technology and its underlying effects gained popularity as ICOs began mulling funds worth billions of dollars, which were also published on whitepapers on proposed plans.
The governments around the world seized the opportunity to interfere in late 2017. Although China completely banned cryptocurrencies, the US SEC (Securities and Exchange Commission) highlighted the risks posed to vulnerable investors and suggested treating them as securities.
A global regulator to govern cryptocurrencies worldwide is the need for the hour and could lay down universal rules to regulate the newest mode of financing ideas. Right now, each country is attempting to regulate virtual currencies through legislation, which is currently being drafted.
If the economic superpowers with other countries would build consensus by creating a regulatory authority with laws that know no national boundaries, this would be one of the biggest breakthroughs in developing a crypto-friendly environment and promoting the use of one of the most open fintech frameworks ever-â the blockchain.
A uniform regulation consisting of subparts relating to trading in cryptocurrency, returns, taxes, fines, KYC procedures, laws relating to exchanges and punishments for illegal hacks will give us the following benefits.
When it comes to a legislation that will regulate cryptocurrencies worldwide, it’s not all advantages. There are some inconveniences, too.