The regulation of cryptocurrencies is a delicate issue that has been trying since the creation of the first digital currency, that is to say at the beginning of 2009. The tokens achieved a great shift in the global economy, however, also caused problems; really minimal. Because of these “problems” multiple financial institutions, such as banks and companies, took the initiative to regulate the maximum possible digital coins, and subsequently, added to the political systems to the regulation of the cryptocurrencies.
Contents
What is the BIS or BIS?
The Bank for International settlements, abbreviated as BIS or acronyms of English, such as BIS, is known for being an institution belonging to many central banks of the world; it is theoretically the Central Bank of the banks. The BIS is primarily responsible for promoting the union among the major banks of the world, so as to achieve a better organization among institutions. In addition, it is characterized by being an autonomous entity, which is not required to, file charges against any government.
Why seeks to regulate the cryptocurrencies the Bank of International settlements?
Initially the BIS did not accept any of the cryptocurrencies, which resulted, made comments with the passage of time on the subject in a negative way. However, they have recently initiated a request for comments to the participants of the BIS, so you will know what to do about the topic. The agency has requested the participation of all the banks that make up, in order to take action in the matter. This is a search to get the opinion of each representative, to initiate a regulation project for the cryptocurrencies; which they consider indispensable. Now, the search is for the regulation of digital currencies due to a number of disadvantages that have caused traditional banks. In addition, they also use it as an excuse, the fact that the cryptocurrencies have caused the problems of trust in the users, since that, there have been scams with the same. On the other hand, many experts have carried out reviews actually harmful to the cryptocurrencies, in which they talk about which tokens are active, and no control, in which the practices of illegal activities abound; for these reasons see the need to regulate them and control them. In the same way, also speaks about the decentralization of the cryptocurrencies, which represents a serious problem, as they are not controlled.
What would happen if they manage to regulate the cryptocurrencies to a global level?
Clearly the regulation of the cryptocurrencies is an event that puts the willies to many users, since they, have large amounts of money invested in tokens. Therefore, this event could cause a major economic crisis in many aspects, as they would lose large amounts of money that are invested in tokens. In addition, later these would lose their value; as well as is happening with the regulations of Bitcoin in China, which are the possible responsible of the low that had BTC in the last weeks of November. On the other hand, it is possible that your utility remains the same, however, cannot be used with the same freedom that currently exists; therefore, they would lose profitability for the people who have them. However, a regulation does not mean that you no longer use, because, this just means a greater control over the same. Which will limit a lot of your scalability in the market, the utility, and similar aspects.
What will happen if it approves a regulation on the part of the BIS?
The BIS talks about cryptocurrencies as a method of active immature, that represents the seriousness needed in finance; it is for this reason that they see it right and necessary to make such regulations. Among the comments more prominent on the part of the BIS, it is mentioned that, these coins have a utility, very broad in the scope of a criminal, since they can be used for many purposes of fraud. It is possible that mainly seek to get the ID of the users, so as to know who is actually traded; this would mean that the addresses and real names will be exposed. One of the first objectives of the BIS is to provide confidence to the users, therefore, it is quite possible that the method mentioned is the first to be implemented. However, it is likely to look for other methods to regulate the use and be able to obtain a higher security with criptos. Although, there is also the probability that the cryptocurrencies to pass to be accepted by the banks and there are no more regulations. However, would be subject to further changes and adjustments. The following two tabs change content below. I am a young man from Venezuela 18 years, lover of technology, innovation, and economic events that govern the world. One of my passions are cryptocurrencies.