Cryptocurrency regulation
The cryptocurrency wave has destroyed the traditional schemes which used to regulate money and financial assets. Furthermore this new trending market has created great opportunities for participants, but it also carries significant risk.
Countries and government are trying to understand how they work and how they could be regulated in order to make this market safer. Generally we say “cryptocurrency”, but this market offers different kind of crypto which have been divided in coins, token security and token utility.
Government agencies made this division, but in some cases coins/tokens show several qualities which make labeling them difficult. In other cases, like in muslim countries, also religion can help make regulation and acceptance difficult.
This article was originally published on UpCounsel.
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“Blockchain can help governments”, says Blockstream CEO
According to Blockstream CEO, Austin Hill, blockchain technology will be able to help government regulatory agencies.
What Blockstream is?
“We want to power interoperable markets that are fair and accountable. Openness, accountability and public ledgers should be the norm and should not require users to sacrifice privacy. We seek to empower users with trustable and secure financial mechanisms via public auditability of their transaction history without disclosing more than is necessary for the integrity of the blockchain”, reports their official website.
“We’re changing how the actual ledger works. It offers huge cost savings for financial organizations in the area of regulatory compliance, trust with other organizations because right now there’s a huge amount of reconciliation that has to occur where everyone has their own copy of the ledger and no one agrees”.
“This technology offers some of the best potential to actually remove systemic risk. And a lot of regulators around the world are beginning to realize that, so they’re looking at their own solutions even at the national government level to say if we do support fiat currency issued on a blockchain, what is the right technology to do so?”
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