Final Crypto-Currency Post

I have spent the last few weeks working on a functional regulatory framework for crypto-currency.  First I looked at what crypto-currencies actually are through the examples of Bitcoin and Ethereum, two of the largest crypto-currencies.  Next, I sought to determine what type of asset crypto-currencies are.  In the end, I determined they are a combination of several different parts of asset classes, including commodities and equities.  Thirdly, I spent time analyzing the problems that have arisen.  The most common issues involve Initial Coin Offerings, theft, fraud, and lost coins.  After analyzing all of this information I have come up with a proposed solution that will be detailed more in my paper.

Essentially, I propose that the international community should come together to create common regulations because of the ease with which crypto-currency can cross borders.  These regulations ought to include some way for the governments to track the ownership of the coins for legal matters.  Maybe this is done by creating an international organization or by having national governments create solutions for themselves.  The best solution is to formalize the role of the current exchanges and use them as sources of this information.  Nations will also want to consider giving any new agencies the responsibility to verify information and look for irregular trading patterns.  These regulations can improve the upon the current market conditions.

Speak Your Mind