With constantly changing political climates and increasingly volatile markets, the future of cryptocurrency regulations seems to be constantly changing. Countries such as China are clamping down on cryptocurrencies with a plan to launch their own crypto options. At the same time, other countries like Switzerland have embraced the use of cryptocurrencies and are encouraging the promotion of businesses offering ICOs and using cryptocurrencies for transactions.
In the United States and other countries, the scramble for lawmakers is to create regulation on the decentralized nature of cryptocurrencies. This further creates movement by the cryptocurrencies to stay ahead of regulations, something they are easily doing with the advancements in blockchain technology.
The Legal Concerns
Over and above the confusion over the classification of cryptocurrencies, there is a growing concern around the world about the use of crypto assets. The nature of these digital currencies proses a concern by some for the use of these assets in the funding of terrorism and large-scale money laundering by criminal organizations and “bad actors.” While the evidence of this type of use of cryptocurrencies is largely unsubstantiated, it is a driving factor for the argument for increased regulation.
Increasing Concerns Over ICOs
Another driving force to develop some uniformity in creating regulations around cryptocurrencies is the increasing number of investor lawsuits against ICOs. Perhaps the largest class-action suit is against Tezos, which faces both investor fraud and securities violations after the $232 million ICO.
The future of regulations in most countries is to provide some level of protection for investors while creating safeguards for crypto assets and legitimate ICOs. How this will play out is yet to be determined, but it is moving quickly.
