Since Bitcoin was created in 2009, the popularity of cryptocurrencies has been on the rise. More and more users are using these digital currencies to manage their capital or carry out transactions.
Although for many, the use of these virtual currencies is quite beneficial, within the legality framework, there are still many loose fringes, since, when we work with cryptocurrencies, we do so within a decentralized network whose movements are not regulated by any public body or financial institution.
However, the debate on the regulation of virtual currencies is taking on more and more weight since this type of currency is on the rise. Many think that it is necessary to create rules to carry out transactions, since, although The use of cryptocurrencies is very advantageous, criminal or somewhat illegal actions are carried out.
Will the use of digital currencies be regulated in the future?
As we already know, the use of cryptocurrencies is not regulated by any entity, as is done with traditional currencies.
It is a decentralized network, and therefore, the value that these digital currencies acquire will depend solely on the users, that is, on the Law of supply and demand that exists at certain times.
Taking this context into account, it must be said that cryptocurrencies are increasingly being used to carry out financial movements, primarily through Bitcoin, which is the digital currency par excellence.
By increasing the use of these currencies, some countries’ governments have already begun to consider what they can do to regulate their situation.
Although no 100% regulations have yet been established, the truth is that in some areas of the planet, before this debate, specific measures had already been taken regarding the situation of cryptocurrencies.
Thus, in 2013, Germany decided to Compare Bitcoin Prices to the investment in gold. For the first time, a cryptocurrency was spoken of as a unit that had value and not merely as a digital currency.
For its part, the United States, that same year, approved that Bitcoin would be one more exchange currency, carrying out investments with it.That is, from that moment on, Americans could Buy Bitcoin to Purchase goods or services.
Similarly, within this framework of changes in that year, we must highlight the Belgian National Bank, which adopted Bitcoin as another exchange currency, not opposing its use within its financial system.
Actions of the European Parliament
Considering the measures that some countries were taking, the European Parliament also decided to take action on the matter to try to regulate the situation of cryptocurrencies. At first, the ideas that were being considered were only speculative since the technologies that were using these virtual currencies were not precisely known.
However, although it was clear that the use of these currencies was advantageous, a series of conflicts and criminal situations also began to occur that further hardened the issue.From the European government, it is believed that cryptocurrencies are presented as an alternative to traditional currencies and serve to finance illegal or terrorist situations.
Due to the lack of regulation, these movements are not reflected anywhere, and therefore, the flow of capital for this type of activity does not leave any trace. Thus the authors are unknown. Thus, the European Union has begun to seriously consider the regulation of cryptocurrencies, and it has not been ruled out, creating an exclusive authority just to ensure their proper functioning.
For now, the European Union’s Money Laundering Prevention Directive has already included cryptocurrencies within its money laundering regulations.Among other measures, we find that all the risks to which users who can carry out operations with these digital currencies are exposed will be studied and analyzed.
Similarly, all systems that offer these financial services must duly identify customers through a copy of the ID, passport, or any official document that accredits them.
Some platforms are already carrying out this measure, and they even require a residence document.
A list will also be made of all those people and entities, both European and American, who have committed financial fraud at some point, thus not letting them use cryptocurrencies for investments or transactions.
Also, exclusive policies will be created for clients’ admission and even a preventive manual on the risks or problems that may arise if working with these digital currencies.
The creation of the Fintech Law
The European Union has already taken charge of this issue and is concerned about the situation experienced today with cryptocurrencies and the lack of regulation of them.
This Law intends to prohibit certain activities that may be fraudulent, taking into account the scenario in which these types of systems operate.
Regulation for the environments in which banks and startups operate will also be included, and there will also be a special mention for the purchase of interfaces.
Although this Law is mainly focused on institutions that use financial technology, such as crowdfunding companies or electronic payment companies, it includes a section that exclusively talks about cryptocurrencies, virtual assets whose value is not regulated by any organization.