A major shift has occurred in the crypto market this year since China placed a ban on crypto. Many regulatory bodies are beginning to take more bold actions as regards crypto trading in their countries. Binance, most recently, suffered a ban in the UK.
Traders and users in the UK cannot make deposits or place withdrawal requests using the GBP which makes business tough and nerve cracking for those with assets on Binance platforms.
What is the Endpoint of the Crackdown?
This short crackdown on Binance users is part of a wider crackdown plan. As we all know cryptocurrency operations are not under any financial regulation in any country and this has caused issues between the government and many cryptocurrency exchanges as they have not been able to make profits off these business operations.
As many international authorities become concerned about cryptocurrency operations, they’re using this ban on Binance and crackdown from China as a way of grappling with cryptocurrency in the future.
Binance has claimed to take adhere to the regulatory laws. But is still facing challenges in several of its operating countries that include Japan, the US and Ontario Canada. With this move from these countries, it’s quite clear that crypto traders and trading platforms should expect stricter laws in the future and these countries are already putting their moves in place.
What is the Use of the Regulation?
Regulation would empower the enforcer with the power to make or mar cryptocurrency. And just like Binance users in the UK have experienced, letting local authorities make such decisions can hurt your trading operations going forward.
If many countries copy the high-handed approach of the Chinese, it could be deadly as the reason for the Chinese actions is to continue controlling their monetary system. However, any regulation of this currency will cut against cryptocurrency’s decentralised nature as stated on britishbitcoinprofit.org
The main purpose while many people using this system is because it eliminates the middlemen of financial systems. With these regulations in place, these middlemen are looking for ways to get back into the chain of command.
The issue with this regulation is that if cryptocurrency agrees to go mainstream and reaches its full potentials, it cannot act outside of the ruling system. Financial regulations may have its perks but it protects the owner from unexpected catastrophes and fraud. So, what’s in it for cryptocurrency?
What Does This Ban Mean for Cryptocurrency?
Crypto investors need to be careful especially in countries where few regulations are already in place as continuous regulation would cause hindrance for the crypto industry. With the recent regulations going around, many countries are now introducing AML policies for virtual currency systems which every trading platform must register.
With this move, you may not be able to operate on platforms that are not licensed in your country. You must use exchanges licensed in your country so you can avoid having your assets confiscated.
Regulation May Not Be Bad After All
With the number of individuals and businesses with an interest in cryptocurrency, not many governments will take that root of placing restrictions or bans. However, it’s still a risk because if your country places a restriction, this can affect your portfolio value.
If countries on the other hand put together reasonable regulations, it can help the country economically and also expose more people to the use of crypto exchange and digital currencies as consumer confidence increases.
Now that regulations and restrictions have not been passed in many countries, you can still purchase your crypto coins at different exchange platforms. To find what suits you, you need to decide the features you need to operate perfectly.