Are you a big Bitcoin lover? How about a crypto lover just in general? A lot of people are wondering where is BTC headed in 2023. Also, not everyone is sure if they should invest since a lot of worry about its regulations. Did you know that the Indian government is planning to introduce a bill during the ongoing winter session of Parliament to classify cryptocurrencies as financial assets? They will also try to protect the interests of small investors. If you are wondering where is this headed and if it is important to keep an eye out, just continue to read and discover everything down below.
9 Reasons Why Bitcoin Regulation Is Important
1. It helps and prevents market population while protecting investors
Regulations aim to add investor protection and make the cryptocurrency market less susceptible to manipulation. Our market manipulation and price volatility are the most common topics in cryptocurrencies and with the crypto world. BTC itself has had a lot of ups and downs and is known to be the biggest and oldest crypto. By not having authorized information the process of regulation and trading becomes too hard to follow for any investor.
2. Allows selected types of cryptos
Did you know that nowadays we have more than thousands of different, legit, and successful cryptos? Cryptocurrencies are a new asset class and with that comes new challenges for regulators. Although everyone is always focused on Bitcoin, Ether, Ripple, or Dogecoin, the truth is that others are on the rise, and keeping an eye out for them should be crucial. This is why a regulatory authority clearing cryptocurrency is required. With it, all information can be disclosed with any form of potential risks.
3. Risks with technology
Given the rapid rate of technological change that we experience on a daily or weekly basis, it is no wonder that people can (and will have) questions. Seeking help from professional financial advisors that know how to work in crypto (especially BTC) will become a skill. Every investor should be informed of any potential risks with their further move. Regulation will become mandatory, especially as new currencies become common and on the rise.
4. Common online frauds, cyber scams
How many times has this happened to you? Or how many times were you worried that it may happen to you? Investing in cryptocurrencies comes with another risk that people don’t know how to approach or deal with, and that is online fraud. Hacking is a major threat worldwide that can happen to anyone, especially when not careful enough. With the help of proper regulations, the authorities can implement measures to help cryptocurrency investors protect their assets. SEC and CFTC have issued multiple warnings about scams pertaining to cryptocurrency investments.
5. Money laundering schemes
You couldn’t believe how many different types of money laundering schemes are out there, involving cryptos. For a lot of people, unregulated work or work ”under the table” can come off as a huge problem. Funding criminal acts or approaching the crypto industry can be a huge challenge if not regulated at the right moment and spotted early on. You should keep all the investors’ real identities and verify their locations at any moment, especially if you plan on buying or selling your BTC. This is important for your own safety since it is better to be safe rather than sorry.
6. Tradeable assets
Did you know that there is a need for clear classification of cryptocurrency in India? A the moment cryptos are not a legal tender backed by the central government or the RBI. This means that you can’t act or use cryptos for debt, equity, or a commodity. Regulations are slightly different from one country or from one continent to the other. At the moment there is a need for strong penalties for any violation of KYC guidelines, just giving you a heads up and keeping everything in order.
7. Investor protection
The value of virtual assets is also prone to market manipulation and price volatility. This means that people can dictate the price point and that others can predict if it is going to crash or rise, given the circumstance. Cryptos will fluctuate, especially Bitcoin. Sometimes it is down to $47K but manages to climb up to $57K in less than a month. This is why disclosure of underlying assets, their performance, and adoption is vital.
8. Well-known crypto assets
Did you know that some Indian platforms are offering more than 300 crypto assets for trading at this moment?! However, how can one pick out just one or know who to trust and where to trade? Which platform is safe and has had a background check? A regulatory authority clearing the crypto assets is needed. Luckily, BTC is already well-established and considered to be legit, but how to know the origin of one coin specifically before it becomes yours?
9. Risks are there
There is a big risk of technological changes that could even make the blockchain obsolete in the future. No one can know or predict the market and its future moves, but you can do some calculations. This is why the value of digital assets or when it comes to buying digital assets requires the asset class to remain relevant for the long term. Certified financial advisors trained in crypto assets can play an important part.
Did you know that you can donate Bitcoin?
Since it is not that easy to track and it is not as regulated at the moment, nothing stops you from being giving and generous in terms of donations! At Couponxoo you can easily make an anonymous donation to however or wherever you like. Depending on your preferences and requirements, you can submit the funds from your wallet to the charity organization’s address directly or through a broker. Charity organizations also increasingly use Bitcoin because of its relatively lower transactional costs and fees. Enjoy these amazing perks while you still can!