Regulation Of Crypto-currency Around the World
Updated: Jun 24, 2020
“Cryptocurrency is freedom, Banking is slavery”
ABSTRACT -This article generally speaks about the framework of Cryptocurrency all around the world. The abstract currencies are the new instrument brought out, which are basically abstract objects. Currencies as a sense which can be exchanged between person to person. Virtual currency or Cryptocurrency is protected cryptographically. Due to advancement in technology and innovations, the rate at which virtual currency or cryptocurrency are being used is at a high rate.
Cryptocurrency is a lot of planning to function out of the contact of nationwide regulation, but in reality, there time valuations, transaction volumes, and consumer bases reply substantially to news about narrow actions. The impression depends on the particular dictatorial grouping to which the news relates: procedures interrelated to universal bans on cryptocurrencies or to their cure under securities edict grasp the most adverse effect, followed by news on struggle funds laundering and financing of terrorism and on restricting the interoperability of cryptocurrencies within time markets. Although the cryptocurrency market relies on keeping up economic institutions to activate and these market segmented across jurisdictions.
WHAT IS CRYPTOCURRENCY?
A cryptocurrency is a form of payment that can be used to buy online goods and services in exchange. In today's time, many companies are coming out with their currency knows as tokens which can be used to trade specific goods and services that the company provides. This type of payment generally used a kind of technology known as 'blockchain' which is also a decentralized technology that manages and records transactions as peruse. At present, there are nearly about 2,200 different types of cryptocurrency according to a market research website, generally known as “COIN-MARKET-CAP”.
IS CRYPTOCURRENCY LEGAL AROUND THE WORLD?
Regulation of cryptocurrency around the world varies significantly. In several countries, cryptocurrency is absolutely banned whereas in some countries may be recognized as cash but not as a currency. There are also some countries that maintain uniform laws on how cryptocurrency is supposed to be taxed and defined. Whereas, some countries caution their authority about the use of cryptocurrency and aspects out about how risky it is to trade or accept cryptocurrencies. It is often found that government regulation is time bounding to reply to changes. Much of these regulations mainly go around Bitcoin and not cryptocurrency in general. The regulations involved should agree to flow with productive growth but constricted on contracts during various terms. However, from a traders perspective, this kind of mechanism can be seen to benefit as its resources are more protected if things are going wrong theoretically.
TYPES OF CRYPTOCURRENCIES - A BRIEF ANALYSIS:
1. BITCOIN (BTC): It is the most commonly known currency which is considered as an original cryptocurrency created in 2009 as open-source software. This generally allows users to make peer transparent transaction, those are generally secure through algorithm present itself in the blockchain. These kinds of transactions generally allow anyone to make any kind of trade throughout the world through the use of Bitcoins anonymously.
2. LITECOIN (LTC): This was launched in 2011 basically to have an alternative to Bitcoin. It is also an open-source, completely decentralized (i.e, having no central authority) payment system which is used around the world.
3. ETHEREUM (ETH): Created in 2015 it generally focuses on the working of the programming code of any decentralized application allowing the developers to pay for each transaction fee and services on the Ethereum network.
4. RIPPLE (XRP): Released in 2012, for the financial transaction which basically acts both as cryptocurrency and digital payment mainly created for a fast, more secure, and low-cost method of transferring money.
5. ZCASH (ZEC): A digital currency built mainly on the original Bitcoin codebase, where the core focus was on privacy i.e. without disclosing names or any sort of code or the amount transacted the user can use Zcash, making it a more secure transaction.
6. STELLAR LUMEN (XLM): Created in 2014, the main function of this type of transaction was that users are allowed to send any currency which they own to a different country to someone else. It allows cross-border transactions between any pair of currencies.
Bitcoin can be useful for many people, as being an international currency can be used in any country without any conversion between currencies. As we know blockchain being completely safe, the money reaches out to the right person. All this helps Bitcoin to attract more users and someday in the future, it may replace the official currency. There are some disadvantages but it can be improved.
ABOUT THE AUTHOR:
Ankita Sarkar is currently a 4th Year student studying BA.LLB course at KIIT LAW SCHOOL, BHUBANESHWAR. The author can be contacted at https://www.linkedin.com/in/ankita-sarkar-2a0aa0160
Editor: Jayant Upadhyay
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