WHAT ARE REGULATIONS?
Regulations refer to rules or laws that are put in place by a governing body to control or guide certain actions or behaviors. They can be used to govern industries, protect public health and safety, or promote social and economic goals.
NEED FOR REGULATIONS IN CRYPTO
Regulations are needed in almost every industry, not exceptional in crypto industries , the major reasons are… .
TRANSPARENCY : As most of the activities in the crypto market are so hidden as we won’t be able to know even who bought the rest of the shares except us or how the drop and gains of the coins are determined and when it happens.
In short it is hard to predict on the market like others markets with the available information which makes it non transparent. Bringing in some regulations can change this confusion among users by providing additional information which is completely transparent.
FRAUD AND FINANCIAL CRIMES : Almost establishing transparency can solve this issue of frauds and financial crimes too.
There is great increase of frauds and financial in this hidden crypted market where things are dealt within codes and encryption which makes it easy for the illicit crypto service providers and individuals to make use of these features as an advantage for their benefit to make customers frauds and thus t crime increases.
ILLEGAL ACTIVITIES : By adopting rules and regulations , the groups and individuals who use this dark market as a financial platform for their illegal activities can be found out through the transparency of data.
STABILITY AND INTEGRITY : Regulations can help to prevent market manipulation and ensure that the market is fair and transparent. This can help to build trust in the market and encourage more mainstream adoption of cryptocurrencies.
SEC AND REGULATIONS
As we all know that SEC has been tightening the regulations of the crypto market considering the losses which can incur due to high liberal policies.
After the crash of FTX a large number of exchanges are aware of the dynamic changes in the market conditions and possible policies.
Hence making it important for the crypto performers in their diligence to consider all the possible changes that can happen within the policies of the crypto market.
Overall, regulations can help to promote the growth and stability of the crypto industry while protecting consumers and the market from fraud and other negative activities.