Different countries are trying to regulate cryptocurrencies and ICOs, but this is not an easy task. The United States Justice Department is working in a “comprehensive strategy,” a specific approach towards regulation cryptocurrencies. It is important for governments not to kill the market by imposing very strict regulations but neither leave it unregulated. That’s a difficult equilibrium to find.
United States Justice Department Crypto Regulations
Apparently, the US Justice Department is searching for new ways of regulating virtual currencies. As the cryptocurrency market is getting more and more interest from the media and the society, regulations must follow. There is not a clear path followed by different states about how to regulate this volatile market.
Regulations must be addressed as soon as the market shows signs of being mature. Regulations before it can completely destroy it or slowing it development by restricting its potentialities. If there’s not a clear framework, it can also be a problem for individuals and investors that may lose their investments.
Cryptocurrencies cannot be compared to fiat money because it works in a completely different way. It also expresses a society that is tired about the old system and wants to change. It is a way to express how society sees the future of money and relationships between individuals and enterprises.
Most of the regulations should attack the illegal activities around cryptocurrencies, including money laundering, criminal fundraising and terrorism financing. This is a clear problem that sometimes is directly linked to cryptocurrencies, when in reality, the problem is wider. Drugs and criminals have always existed and they have always found a way to avoid regulations and operate.
For example, Singapore has expressed its intention not to regulate cryptocurrencies, but instead, all the criminal activities that may use virtual currencies. This is what the head of the Monetary Authority of Singapore, Ravi Menon, commented
“Our attitude is to keep an open mind about (cryptocurrencies and bitcoin). Very few jurisdictions regulate cryptocurrencies per se. The currency itself does not pose the kind of risk that require regulation. Our intention is to look at the activity around the cryptocurrency and then make an assessment about which regulation would be suitable.”
At the moment there is not clear information about what the Justice Department is expected to do. It can also happen that the discussions that are taking place now may not find a clear solution in the months to come. The regulatory measures can wait; it is not something that should be treated as fast as possible.
Other experts believe that cryptocurrencies need to be regulated as soon as possible or before they become mainstream. There is no clear plan as of today. The G-20 will let us know better which is the panorama in front of us regarding crypto regulations.
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