Is a Global Cryptocurrency Regulatory Framework Feasible?

Now we are seeing that big crypto coins such as bitcoin, litecoin, ethereum, and there are many more, including stable coins, have become a part of this world of finance. Crypto is unique and more beneficial because that offers low fees, fast and international transactions, and you can store the value without depending on a third party. But there is one big problem that everyone is facing, which is the regulation of crypto. We need crypto regulation that works globally, the same for all countries.

Why Do We Need Crypto Rules That Are Global?

We can't say that crypto belongs to X country or Y country because it is built for the globe automatically. Within a minute, you can send your crypto from Mumbai to Kuala Lumpur. This is very nice and beneficial, but at the same time, there is a challenge. On crypto, the world's country has different opinions. Some countries banned crypto, and some accept it. You can see the mixed rules and regulations all around the world regarding cryptocurrency. Scammers are taking advantage of this lack. There are crimes like terrorist finance, money laundering, and scams that are associated with crypto, and a global crypto framework can set one rule for all over the world for crypto so that the crime can be reduced.

What are the Challenges of Making Global Rules for crypto?

Global rules and regulations sound like an excellent idea, but they are not easy to apply. Because, as I said, the world's countries have different rules and opinions on crypto. China has completely banned crypto because, according to the Chinese government, this is a threat to the Chinese currency, and they also want to promote the Chinese digital yuan. On the other side, El Salvador made it completely legal to use bitcoin and crypto. Now you can difference in both countries, and this is just one example.

Control is the second big trouble. Countries do not want to lose their control, and the countries' governments want to manage the financial world, and they fear that crypto will take away their ability to control. There is one more fear that global rules can be helpful for one country, but the same rules may not be good for the other country.

Crypto is technology which always changing, and you can also see new coins coming daily. Now let's say there is a global rule that exists for the world for crypto, then in this case, frequent updates are necessary, and this is gonna be a difficult task for sure.

What Could a Global Framework Look Like?

FATF is already working on a global crypto framework. This is impossible for all the countries of the world to come under one regulation for crypto, but a group of countries can do this. This is what FATF is doing and helping in the crypto business in countries. Controlling everythingis not good, but yes, preventing crime is necessary to protect users. Investor protection, fair taxation that can't harm innovation, and implementing basic rules that companies must need to follow are the things that could be implemented.

So the main thing is focusing on only on the big issue instead of controlling everything.

Final words

Global regulation for crypto seems impossible for now but group of countries can come together to work on it and also instead of controling everything, focusing on big issues with implementing fair taxation can be a game changer for this innovation. what say? let me know in the comment and sharing this post is necessary.

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