Cryptocurrency (Blockchain) trading, CB concerns and regulation
Blockchain coins/cryptocurrency(Crypto) have been viewed with caution by Central Banks(CB) world wide. There have been a range of reactions: acceptance, silence, total ban, and so on. Developing economies are concerned with the economic instability that a dominating Crypto could create in the future while advanced economies are more concerned about money laundering issues. Broadly CB/government concerns are in the following areas: Loss of control on the monetary policy and money supply Investor protection Tax on gains made on crypto assets Money laundering and payment transactions for dubious activities Lets look at the above issues in some detail. Crypto trading is open to a global market and doesn't have any link to local regulatory or CB controls. Implementing controls would keep that country out, but wouldn't stop the trading or asset exchanges in other countries. Crypto market cap is fairly large, USD 1.78 trillion, so its no longer a phenomenon that can be ...