What is cryptocurrency?
Cryptocurrency is digital money and has no physical forms. It is in an electronic forum and the exchanges could be done online with cryptocurrencies. Basically, cryptocurrencies are the online medium of exchange and are secured by cryptography which means all your financial transactions online with the regulation of cryptocurrencies are secure and safe.
Why should a cryptocurrency be regulated:
As cryptocurrency is a virtual currency, therefore, it also comes with few challenges hence it is very important for countries to regulate the cryptocurrencies. Let’s have a few reasons here why the cryptocurrency regulation is required:
- Secure and Balanced Value:
Many times there are major fluctuations in the value of cryptocurrency and hence it becomes very difficult because often the value goes high and low which could be a loss as well as again for investors but regulating them leads to stabilizing the value of cryptocurrencies.
- Promoting Safety:
Regulating cryptocurrencies surely promotes safety and security by minimizing fear. In the past theft of digital money has happened and the proper regulation of cryptocurrency makes it safe and secure.
Cryptocurrency around the world
As we know that cryptocurrency has taken over the entire world which increases the responsibility of the government of different countries to regulate the cryptocurrencies.
There are many countries where cryptocurrency is well regulated
7Cryptocurrency is well regulated in Europe well and is regarded as legal also it is set by individual member states. Switzerland has made a progressive attitude towards the regulations of cryptocurrency in the country.
The USA has the most positive outlook when it comes to the use of cryptocurrency as they see cryptocurrencies as security. Though the laws vary from state to state in governing exchanges.
Under the Payment Services Act. Japan considers cryptocurrency as the legal property and therefore, has the most regulated and progressive environment for cryptocurrency.
- Cryptocurrencies in the UAE
The UAE primarily controls the trading of cryptocurrencies by DIFC, ADGM, and the rest of the United Arab States. According to the declaration released by DFSA, the DIFC official regulator, no organization is permitted to issue DIFC cryptocurrencies.