Something that isn’t controlled by a centralized authority or a governing intuition.
Unregulated means that there are no formal rules or obligations applied by a federal authority to protect those involved in the said activity.
In the context of the financial industry, it means that there is no regulatory authority to protect investors and consumers from fraud, harassment, or other malpractice.
Cryptocurrency is growing in popularity, but is it unregulated?
Is cryptocurrency regulated? Yes, and no.
You might be wondering why this is a topic of debate. It is important to recognize that cryptocurrency and the blockchain technology is still new for many countries, and many regulatory bodies include them in the gray area. All of the agencies involved with monitoring cryptocurrency have conflicting rules and understanding when it comes to its supervision.
Taken together, these organizations have issued warnings, guidance, and rules about cryptocurrency. But none of them has sole purview over the digital currencies – yet.
Cryptocurrencies have, for the most part, been unregulated. Bitcoin is no exception. Like other cryptocurrencies, it is not backed by a government or central bank and has fluctuated wildly in value.
It's important to be aware of the risks involved with any cryptocurrency investment. And remember that there is no such thing as guaranteed returns with any kind of investment.
Cryptocurrency regulations can be good or bad for the market depending on the specifics of the regulations. While regulations can provide more opportunities and trust in the cryptocurrency, too much of it can kill the market’s growth. If done right, regulations can help expand the investor base and create a sustainable ecosystem.
On the other hand, over-regulation can stifle innovation and discourage individual investors from investing in cryptocurrencies. Having some regulations will help legitimize the cryptocurrency industry and make it widely acceptable.
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