What does Wobit Cryptocurrency have to do with the Financial Services Authority, and how does it relate to regulating the internet? Well, you’ll probably be surprised to learn that the FSA was created by a group of government regulators, which are known as members of the House Financial Services Committee. As previously mentioned, cryptography is an integral part of any modern Internet transaction; therefore, any software which can break or disclose such encryption keys will need to be able to function in a compliant environment. Cryptocurrency is nothing more than a new digital currency, which has recently emerged on the scene, namely the Dogecoin, and has been gaining momentum at an exponential rate. As such, this regulatory framework will no doubt play a big role in the future of Cryptocurrency.
The reason why this particular government body felt that regulating the Cryptocurrency industry needed to be done was because there had been so many cases of unsolicited online hacking which was able to steal private information from hundreds of innocent citizens. This information has been used in malicious attacks against the general public. Therefore, the need for this form of governance is very important. In addition to this, cryptography itself is a specialized science, therefore, a regulating body would likely be more capable in detecting and stopping the irresponsible implementation of such science by those in the financial sector. Without this form of regulating body, the entire industry will be subjected to numerous threats.
This brings us to one of the major issues with Cryptocurrency in the first place, and that is the lack of regulation surrounding the industry itself. Without a governing body to oversee the Cryptocurrency industry, then we are essentially opening the door wide open to anyone with the money to invest into Cryptocurrency. This opens the door for a massive array of scammers to enter the market, therefore, ultimately leading to the fall of the economy of any nation which has not been properly regulated in the area of Cryptocurrency. Simply put, without the cryptography behind the curtain, the economy will fail, and as such, every single person on Earth will suffer greatly.
Now, I have no problem with regulating the industry itself, and I think that the government has a very good reason for doing so. However, when you look at the issue of why it is important to regulate Cryptocurrency, you must put into consideration how powerful Cryptocurrency actually is. Simply put, Cryptocurrency is a computer language which allows individuals to transfer value from one electronic device to another without using a third party. Within the last decade alone, more than two trillion dollars have been transacted through the use of Cryptocurrency.
These days, many new applications for Cryptocurrency have been developed and are being made available to the public. This means that the business opportunities surrounding the Cryptocurrency market have increased exponentially in the last few years. With such an explosive growth, many enterprising individuals are looking for ways to get involved in the market, and without a proper education, this can be somewhat of a difficult task. This is why the need for a governing body arises; because without one, the market will become too unpredictable and there’s a lot of room for bad ideas and schemes to make money on the market.
Many governments have taken a very good look at Cryptocurrency and the issues surrounding it and have come up with quite a few proposals to regulate the market. One such proposal is to form a committee which would regulate the Cryptocurrency market. Such a committee would closely watch the Cryptocurrency market, keep track of the changes which may occur, and set up guidelines for Cryptocurrency trading that the government feels is necessary. Of course, this isn’t a bad idea in and of itself, and many feel that it’s the best way that we can guarantee the stability of the Cryptocurrency market going forward. The main thing here is just getting the government involved; this is much less harmful than having a major player come in and start trading.