Why Cryptocurrency Regulation Is Vital

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Let’s have a look at a positive view about the right regulation

I admit it, I’ve entered this industry almost involuntarily; everything started from different aspects, experiences and facts that consequently led me to the inside. I can honestly say that the entrepreneurial vision I have always had towards the labor market, made me understand that there are no systems that create money from nothing; there cannot exist systems that generate profits on debt based on a simple trust given to third parties, without rules that must be applied, checked and enforced.

Do you know why? History teaches us very well. We have already had past experiences in which humans have been proven unable to manage with good sense the economic, financial, technological or industrial revolutions. Everyone today looks at the blockchain revolution for the simple profit that it allows them to make. How many really focus on the technology on which it is based? How many focus on the potentiality that it can offer in creating and implementing business projects, startups or new business models that can offer concrete solutions to simple or complex common problems?

The truth is that most of the people, professionals and amateurs, who approach this world, do it with the first purpose of being able to earn money, lots of money, quickly, without even worrying about having secured a safe way out . It is easy to buy cryptos, but is it easy to sell them and collect the corresponding value in FIAT currencies? The answer is obviously not. We all know why, but we also pretend not to know, not to worry about it, as if not talking about it could help us to solve the problem. Problems can not be solved by letting time go by; that is a great way to magnify problems and increase their risk.

What risk am I talking about? I’m talking about the lack of regulation to which the exchanges must undergo, clear written rules, that must be respected. Today, the vast majority of exchanges operate in freedom and absolute anarchy. Consumers and private investors consider and talk about exchanges as if they have obligations and duties. But the truth is that instead they are just simple private companies that must respect the rules that they themselves decide to apply on themselves. There are no guarantees, there are no super partes criteria, there are no guarantors. There is nothing like this. Many people spend their time talking and writing about the cause of a collapse that decreases capitalization, or a pump that makes causes market prices to fall. Everyone worries about a possible regulation because it could cause the very nature of decentralization to lose, or because it could lead to a tax on income and profits derived from the speculation generated by investments in cryptocurrencies. But nobody cares to go deeper into the foundations looking for greater stability that can bring huge benefits for everyone. That’s why we need regulation.

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Francesco Redaelli

Co-Founder VP Business Development at Koinsquare | Advisory Board Member at Friendz, Viso, Akaiito and Volans | FinTech, Blockchain and ICO Expert at ICObenc

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