Function of crypto regulation
Currently, cryptocurrencies are widespread and rapidly developing, for a general assessment of the state of the market used the concept of capitalization - this is the value of all cryptocurrencies in circulation. The crypto regulatory function is not provided by a central bank, as in the case of fiat money, but by a community of users using jointly developed cryptographic protocols. The source code is often open, allowing anyone to freely use this decentralized technology.C ryptocurrency transactions should be regulated in the same way as national currency exchange transactions. Exchange services should be registered as financial service providers and licensed accordingly.
Bitcoin is more accurate to compare with money than with an electronic payment system. Transaction fees are set by users independently, regardless of the number of miners, and the minimum commission is determined by the network load. The possibility of increasing the commission is given to users who want to quickly confirm the transaction.
The importance of crypto regulation
Just as in the traditional securities market, there is a problem of market manipulation in the cryptocurrency market. In general, it is the deliberate creation of a false price for a product, asset, or currency. Minimal regulation of cryptocurrency exchanges linking money and cryptocurrency leads to loss of funds of investors as a result of manipulation. Unlike traditional stock or commodity exchanges, there are many cases, Some cryptocurrency exchanges are registered in independent jurisdictions and may not adhere to user identification requirements. They can even operate without a legal entity. In the absence of regulatory oversight, these global exchanges facilitate money-laundering schemes and the movement of money across national borders without much control.