Cryptocurrency, at present, is subjected to endless rules and amendments by many financial supervisors and regulators. In an attempt to further develop the market, the financial regulators are constantly introducing and altering the existing cryptocurrency regulations. This move might not prove beneficial as the overlapping laws might create chaos and hamper the progress of the virtual currency. The saying ‘Too Many Cooks Spoil The Broth’ stands perfect for this scenario
A professor at the University of Arkansas School of Law Carol Goforth recently published a paper about the consequences of having crypto regulations fall under a number of conflicting laws. She voiced her opinion that various laws defined by the U.S. authorities simultaneously will eventually hamper the success of cryptocurrency.
Crypto assets are currently regulated in the U.S. as property by the Internal Revenue Service (IRS), as money by the Department of Treasury’s Financial Crimes Enforcement Network (Fincen), as commodities by the Commodity Futures Trading Commission (CFTC) and as securities by the Securities and Exchange Commission (SEC). This has resulted in a set of extended cryptocurrency regulations and confusing requirements that will thwart the impending progress. Moreover, the expenses associated with complying with all of these obligations can be prohibitive and time-consuming for U.S. crypto businesses such as exchanges, as mentioned in Bitcoin News.
In regards to the regulation of cryptocurrency, India is not far behind. According to the recent developments, the Indian government panel has recently submitted a set of crypto regulations to Mr. Arun Jaitley, the Finance Minister of India. However, the actual content of the report has not been revealed yet publicly.
Considering India’s current stance regarding the concept of cryptocurrency, there might not be any positive developments. The Reserve Bank of India (RBI) also outlawed banks from providing services to cryptocurrency companies earlier this year. One of India’s largest crypto exchanges, Zebpay, closed in September 2018 as a result, saying the ban had “crippled” its operations, as reported on ETH News. On the whole, cryptocurrency regulations are essential but must be introduced in a sensible way.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]