Many governments and institutions have been hard at work to regulate Bitcoin and other Cryptocurrencies in vain. Some governments faced many challenges in a bid to stop Bitcoin in its tracks. But today, Bitcoin has grown to become the most popular cryptocurrency in the world. And Bitcoin continues to be used to pay for goods and services across territories. This article talks about the reasons why governments have failed to regulate Bitcoin.
a) There hasn’t been any agreement about the role of Bitcoin
Many governments and financial institution haven’t been able to agree on the role of Bitcoin. A typical example of this confusion is the California case that involved HashFast Technologies. The company paid for services using Bitcoin and later sued to recover the money. The money had already been paid out to a physician. The Bankruptcy Court ruled that cryptocurrency isn’t the same as U.S.A currency. In fact, it was considered an intangible personal property. The ruling opened up many legal challenges since at the time of writing the bankruptcy code, and other legal codes, Bitcoin, and other cryptocurrencies were not put into perspective. So, before regulating cryptocurrencies, many existing codes would have to be rewritten or updated to align with the cryptocurrency way of paying for goods and services.
b) Bitcoin regulations differ from one country to another
It’s hard to attempt to regulate Bitcoin when its regulations vary from one country to another. Regulation similarities may only exist in countries that do not allow or have banned the use of Bitcoin and other cryptocurrencies. Also, when looking at Bitcoin from a global perspective, the challenge of how it’s classified comes up.
c) Those who have invested in Bitcoin are hard at work to ensure it’s not regulated
Let’s face it; many influential people have invested in Bitcoin today, and they have seen its true potential. So they won’t stand there and let the government regulate it. They are working hard to empower other people to get on board with it, including national and international government organizations, court systems, banking and other financial institutions, businesses and consumers. In fact, they are trying to put past problems behind like the criminal prosecution of two high-profile Bitcoin entrepreneurs, volatile Bitcoin pricing and the famous suspension of trading on the second-largest Bitcoin exchange.
So any regulation fronted by any government should center on prize stabilization, security, and Bitcoin position and update existing laws afterward to reflect the governance of the Bitcoin transaction processes.