Legal Issues Surrounding Cryptocurrency

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Well today there seems to be many legal Issues surrounding cryptocurrency and true some of this has acted as a hindrance to cryptocurrency from growing as it should really as unclear regulatory framework remains in this space and there seems to be lots of legal Issues facing cryptocurrency in general.

Today in my post I will like to delve deep into some of the legal concerns relating to cryptocurrency, or some legal factors that touches deep into cryptocurrency.

Some Legal Concerns Relating To Cryptocurrency

Well some of the problems relating to cryptocurrency as it regards regulations has to do with the way many countries classify cryptocurrency. The laws governing cryptocurrency is different in many parts of the world are quiet different, we have different laws and regulations depending on the area or country, for instance some country classify cryptocurrency as a commodity others see it as a currency whilst others view it as a security. So this differing classification places cryptocurrency in unclear regulatory framework.

The way countries classify cryptocurrency will greatly determine how the go about it's regulations as well as when cryptocurrency is viewed as commodity or currency is likely to have favourable regulations than when it's viewed as a security.

The other issue regarding cryptocurrency that weighs on how it's regulated as to do with the environmental concern of cryptocurrency especially that of Bitcoin and other cryptocurrency that uses proof of work consensus mechanism. This often involves the use of high computational power and high consumption of energy and which often impact the environment which makes people question the morality of cryptocurrency mining and have made some countries or areas regulating cryptocurrency rather strongly because of these impact.

Also there comes the issue of using cryptocurrency to finance criminal activities. Cryptocurrency is pseudonym in nature which means that money transactions can be done seamlessly and it's hard to track it back to the sender to prosecute the person in an event it's used to facilitate criminal activities so for this reason also some countries has placed restrictions on the use of cryptocurrency though many exchange today uses kyc to ensure the identity of all the users is known as enforced by the laws of the land though some still have doubts nonetheless.

Also another regulatory concerns lies on the volatile nature of cryptocurrency, some have often been reported taking their own life after suffering some insane loss in this market due to the volatile nature.

Take for instance the case of Lunc which crashed rather badly reducing many millionaires to nothing so for this reason and other manipulations witnessed in the cryptocurrency market which has often lead to losses some people can't handle regulatory bodies feel it's mandatory that they protect customers as sometimes this times are often manipulated by exchanges this has lead some jurisdiction to keep a tight grip on cryptocurrency as it regards it regulations refusing to loosen up the tight leash whilst some feels an exchange must adhere to certain rules in other to be allowed to operate in their country which is fair enough considering.

We also have things like tax laws and all and we find out that in many places it's often a concern or unclear as to the best way crypto tax laws should be and many today places tax on every transactions involving cryptocurrency even on mining rewards whilst some feel taxes should be placed only on profit mad investing and trading cryptocurrency, so there are a lot of concerns as it regards things with many different opinions and variations depending on the place.

These are all the different legal Issues surrounding cryptocurrency.

Conclusion

When it comes to regulations of cryptocurrency we can clearly see we are ever evolving, there has been cases where the law was hard on cryptocurrency and eventually things loosen up and vice versa, development often brings changes in this rules and the hope it's that with time the differing regulations would be clarified and a proper legal framework for cryptocurrency would ensue which would no doubt contribute to the growth of cryptocurrency in a global stage with a clear regulatory framework there is really little of nothing stoping cryptocurrency.