People wonder what regulations? You are right. The government kept urgently thinking about regulations and they just cannot come up with something on their minds because crypto is a very new technology that they have never been able to capture and use the existing regulations to help regulations progress. So what regulations then?
TL;DR
It will likely take years for regulators to come up with regulations. However, recently crypto rushes have made them rethink their existing positions. However, there will be the uncertainty of regulations introduced yet crypto will continue outpaced regulations.
Here is a 1 min summary of the article if you want to skip the reading.
Why Regulations
Nobody wants regulations unless the industry has made society in worse positions. That is what most people believe in. However, regulations can be a tool to erase competition and make one company a monopoly. It is a double-edged sword that can advance existing businesses while pressuring new innovations.
What Is Regulation
No one knows what regulation the government wants to put on the crypto. Current regulations are uncertain and lack of definition of cryptocurrencies. There are no official legal definitions of crypto because regulators are lack understanding of digital assets.
Year of Rug Pull
From Mark Cuban to many individual investors, 2021 was a year of rug pull. Million dollars were scammed. Mark Cuban even called for regulations on Defi which regulators now paid more attention to. Squid Game token is another scam that rug pulled people with millions of dollars.
Crypto Exchange Concerns
One of the biggest cryptocurrencies exchange in the world, Binance, was under investigation. Many countries across the globe from the US, UK to the EU and Japan have tightened up regulations. Countries like China banned crypto completely and others are working on CBDCs to counter crypto rise.
2022 Is Regulations Testing Year
It is likely regulations are uncertain and yet continue blasting in the crypto communities. Regulations will divide into pro cryptos and con cryptos. There will be more debates on the topic yet nothing may immediately resolve.
In Conclusion
Regulations may not be the end game of crypto and the communities will continue to evolve faster than regulations can catch up.
Stay tuned for the 2022 Prediction #5: Institutional Crypto Adoption
This article is also published in Cryptologist as parnership publication.
Photo by Keith Hardy on Unsplash
Note: the post was shared on multiple platforms here.
You can refer my previous article lists here
Digital Commodities- the Unlimited Resources of Commodities Has Born
Universal Income in Crypto Way
DeFi 1.0 is Officially Dead - Welcome to DeFi 2.0
NFT Has a New Purpose
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Metaverse - Second Life Era
Bitcoin ATM Adoption and Its Potential Security Vulnerabilities
When Corporations Are Running By Everyone
The Fundamental Value Is Irrelevant
Coinbase At Huge Reputation Crisis
CBDCs' Flaw Design
Regulations Start Hitting Crypto Exchanges
From Bitcoin Standard To Zero-Knowledge Proofs - Decentralization 2.0
Shiba Hits 1 Million Users (Army) Milestone: What is Next?
How To Avoid Crypto Scammers
Crypto Philanthropy
Shiba Game - When Meme Meets Metaverse
Twitter CEO Steps Down - A Full-Time Bitcoiner
Change of Macroeconomy Landscape
CBDC Is Losing The Game
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El Salvador's Bitcoin
Market Sentiment Has Changed
Brief History of Ethereum and How Ethereum 2.0 May Over Promise
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IMF Keep Crying Out, Crypto Adoption Keep Accelerating
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Defi Enters To Crypto Bond Phase
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Global Regulations Are Coming Or Can They
IMF Did Have A Plan to Run Global Regulations
Doge Starts Moving
A New Malware Will Steal From Telegram
Smart Money Is Out, Institutional Money Is In
Wait, Web3 or Web 3.0 or web3
Airdrop?! Not So Lucky Anymore!
2022 Prediction #1: L1 Scalability
2022 Prediction #2: L2 Bridges
2022 Prediction #3: Zero-Knowledge Proofs or ZKPs
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Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.
