Bitcoin and other cryptocurrencies are decentralized, and you can transact them on decentralized exchanges. Unlike traditional currencies regulated by the government, banks and governments have no control over Bitcoin.
There have been efforts to regulate Bitcoin and other cryptos, but the process has been challenging and is yet to succeed.
Regulating Bitcoin means governments and banks will control it, taking its users through the taxation processes and determining the number of coins miners can generate within a certain period.
Just like central banks decide on everything to do with money and when to print more, the same regulations would apply to Bitcoin.
The only problem is that when Satoshi created Bitcoin, he set a limited amount of Bitcoin at 21 million, meaning that more Bitcoins couldn’t exist.
Although the government might succeed in regulating Bitcoin, it might only succeed in some aspects. Reports from some world economic forums indicate no international regulations regulating Bitcoin.
International bodies have been working to assess the risks and policies to respond to the rise of cryptocurrencies. Their common agenda is stabilizing monetary systems and steering economic growth.
As the use of cryptocurrencies continues to increase worldwide, more regulations might emerge and apply. When this happens, the Bitcoin landscape also evolves from implementing these regulations.
For instance, some countries have regulated the use of Bitcoin and do not allow the mining process. An example is China, which saw most miners in the government move to countries that do not restrict the use and investment of Bitcoin.
What Is The Current State Of Bitcoin Regulation Worldwide?
As the regulations on Bitcoin continue, some countries have accepted it as a legal tender while others have banned it altogether. El Salvador pioneered accepting Bitcoin as a legal tender with the hope of regulating it and helping curb inflation.
Although the country accepted Bitcoin as a legal tender, digital currency usage is low. The government has bought 2381 Bitcoins and will buy one Bitcoin daily for an unspecified period.
Other countries have followed the same trend of accepting Bitcoin as legal tender.
On the other hand, some countries like China banned the use of Bitcoin in their country to regulate it. Most countries worldwide have yet to have a stand on how exactly they want to regulate cryptocurrencies.
Such actions show that there is no particular way to regulate Bitcoin as different governments have their vision.
Depending on the regulatory policies in your region, you can make a good Bitcoin investment on a platform like immediate-connect.com.
Through the white house, the US government developed an executive order enabling cross-agency collaboration regarding regulating crypto.
A global and well-coordinated measure to regulate crypto would protect users and safeguard their investments from fraudulent and illicit activities.
This way, crypto abusers might no longer be in the picture, and crypto users could have some protection as they use and invest in Bitcoin and other cryptocurrencies.
Although this rule of law has not worked, it could be a good move to stop fraudulent activities surrounding Bitcoin. Individuals have lost their crypto to the wrong hands, while some have used it to transact for crime’s sake.
Regulating Bitcoin and other cryptocurrencies may take a while and might only be partially achievable like traditional currency.
Still, a trial could help prevent crypto’s use in crime and fraudulent activities that affect innocent users.