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Sujit Kumar
Jan 16, 2023
by Sujit Kumar

The Impact of Regulations on Cryptocurrency Trading

crypto regulations and trading

Table of contents

  1. Regulations supporting cryptocurrency trading
  2. Regulations harming cryptocurrency trading
  3. Regulation and the way forward for cryptocurrency trading
  4. Conclusion
Cryptocurrency trading has been around for a long time, but it has only become mainstream in the past few years. It's not surprising that regulations have come into the picture since they are necessary to ensure that consumers are protected from fraud and scams while also ensuring that exchanges operate legally. But what is the impact of these regulations on cryptocurrency trading?

Regulations supporting cryptocurrency trading

Japan has been a pioneer in regulating cryptocurrency trading. In April 2018, the Japanese Financial Services Authority (FSA) released guidelines for companies wishing to establish a cryptocurrency exchange. The FSA also required that all exchanges register with them before they could begin operating.

South Korea has also been a pioneer in regulating cryptocurrency trading: In December 2017, the South Korean government announced plans to ban anonymous accounts and stop exchanges from allowing crypto trading by minors under the age of 16 years old; however these regulations were not put into place until June 2018 when they were adopted into law through amendments made by lawmakers within their National Assembly's Finance Committee on June 1st during their meeting held earlier today."

Regulations harming cryptocurrency trading

Regulations have caused a decline in cryptocurrency trading. The regulations are too strict, and they're not practical.

The regulations aren't flexible enough to accommodate the industry.

The regulations are unclear and have caused confusion among traders and investors alike, resulting in discrimination against those who use cryptocurrencies as part of their investment strategies or business models.

Regulation and the way forward for cryptocurrency trading

While cryptocurrencies have been around for over a decade, it's only recently that governments have started regulating them. The growth of cryptocurrency trading has seen a number of countries adopt regulations to protect investors and traders.

The future of cryptocurrency trading is bright because there are many new platforms being developed by companies such as Coinbase and BitMEX which will help investors to trade with ease while providing them with better security measures than older exchanges did.

While there are regulations, which have harmed the growth of cryptocurrency trading, more countries have started to adopt measures that support it.

  • China banned initial coin offerings (ICOs) in September 2017.

  • South Korea has been working on creating a self-regulatory framework for ICOs since 2015.

  • Japan allows only exchanges that meet strict requirements when handling cryptocurrencies from February 2020 onwards.

    • Conclusion

    While there are regulations, which have harmed the growth of cryptocurrency trading, more countries have started to adopt measures that support it. Learn more at ethereum code.

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    The Impact of Regulations on Cryptocurrency Trading
    Sujit Kumar
    Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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