The quantum of regulations in the cryptocurrency space is consistently going up. It is not just in India or a single country. Governments all over the world are creating newer and newer regulations to halt the march of cryptocurrencies. Some might argue that it is to benefit and regulate the cryptocurrencies. However, because cryptos are decentralized, some might argue what the need for such regulations is. The question which we are trying to tackle today is whether cryptocurrencies face a threat from increasing regulations?
Do cryptocurrencies face a threat from increasing regulations?
The developer is also hopeful that in the very near future, the cryptocurrency developers and the regulators will work together. It will allow the developers to create a proper ambiance for investing in cryptocurrencies. Moreover, the regulations will be more practical which will ensure that cryptocurrencies grow and also the developers can allay the concerns of the investing community as well as the regulators.
Moreover, it does not have an entirely public blockchain. That is why it is tough to track the transactions. Perhaps, that is why many exchanges are dropping Monero (XMR) fearing that it may draw the regulatory ire.
When you look at the actual usage of Monero (XMR), it is consistently rising. That is because darknet, as well as many other users, are using it for paying for services and goods anonymously. Not all of these transactions are entirely illegal. It is being touted by many as one of the best cryptocurrency options to transact in. If it continues gaining more and more limelight in volumes, it can sure to rise from its current position of 13th, when it comes to market Cap and climb into the top 10 options.
While the developer might be right in thinking that regulations won’t kill cryptocurrencies, but it remains to be seen how it impacts the growth of the cryptocurrency industry.