Why Crypto Regulation Is Important For Larger Adoption?

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The evolution of the monetary system has gone through many changes over time. In ancient times, it started as a barter system and has evolved into a new manner in the contemporary era. Between the old and new era, paper money and coins became a staple form of payment. And with the change in technology, the dawn of chip cards, credit cards, and of course, the new digital electronic payment method, cryptocurrency came into being. Since the inception of Bitcoin on 3rd January 2009, the wave of cryptocurrency has spread all over the world. But with popularity, came challenges too. This has raised the importance of crypto regulation, amid the challenges given below.

Holding Value

For holding value, crypto regulation is very important. If you have been following the cryptocurrency regulation news, then you possibly know about how cryptocurrency has faced uncontrolled swings in the past. There have been excessive rises in value, followed by unexpected drops, while gold values remained stable. It is obvious to see the happiness on investors’ faces because of large gains, but simultaneously, it also gave many tough times. 

Those having a good understanding of the crypto world will understand how buying and trading cryptocurrency at the time of the rise in value would lead to major losses when their values get dipped later. This spawns the need for crypto regulation that would certainly put an end to such changes.

Snuffing Out Fears

Another reason which demands crypto regulation is snuffing out fears and wrong notions about cryptocurrency. But there is already self-regulation in a specific amount, and it is all because of blockchain encryption technology utilization in cryptocurrency transactions. Since there is no need for the banking system, and the possibility of theft is not easy, crypto regulation in some of these areas is not much needed.

But what seems possible is completely contrary in reality. We are saying this because there had been cases of digital money thefts that generated fears about cryptocurrency use. These fears can only be minimized if the value becomes stable by further regulation. However, there is another reason behind the stemming of these fears. And one general reason is being unfamiliar with the concept of cryptocurrency. This is why crypto regulation must be encouraged, as it would lead to wider acceptance of this digital field by experiencing its use. Therefore, it will result in eliminating fears and will enhance more knowledge.

Resolving Tax Issues

In the present scenario, the IRS (Internal Revenue Service) does not have a favourable view of cryptocurrencies. By keeping cryptocurrency as an investment, you need to report about capital gains as well as losses. However, there are other concerning issues, including taxes, which is another reason why we need better crypto regulation. Cryptocurrency has been used by companies for evading taxes, as it is not being considered as money. The IRS has made an effort to track down cases of tax abuse, but it is not so easy to track down all unlawful activity.


This article must have given you ample insights into the importance of crypto regulation. With its application, it will certainly resolve major issues like tax-evading, imparting thorough knowledge to those who are unaware of this digital technology and will also eliminate fear about its use. The more you gain knowledge about it, the more you will become familiar with its concept. Another very important goal, which it can achieve is the stability of value. It has been noticed that people often buy and sell cryptocurrencies when their value increases, but also have to face huge losses when the value takes a down dip. However, that can be avoided by keeping yourself updated with all the breaking crypto news.

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