The Rules and Regulations Governments Have Imposed in Order to Regulate Cryptocurrencies for Mainstream Consumer Usage

With today's increasingly modern technological development, a lot of new systems have been introduced to the public. The topics to be discussed are about cryptocurrency, one of the virtual money that has been used since 2009. People who want to avoid the intervention of a third person or someone who wants privacy may use this cryptocurrency as these cryptocurrencies use blockchain technology to improve processing in, especially for cryptocurrency miners. There are many types of cryptocurrency that are currently available and the most popular among users are bitcoin. Cryptocurrencies Blockchain system is available in two keys where one is private key and the other one is the public key. For the Public key sender and receiver can share in different and private key where each private owner has their own information. It is used peer-to-peer where one transaction is given to a transaction due to the cryptography and there is a system of mining where there is a person who regulates, controls and removes this digital money.

Why the rules and regulation for cryptocurrency are needed? Because it is to place a restriction on firing or money-generating. Nowadays there are many people who are interested in this cryptocurrency especially in bitcoin because of its value and nowadays the demands for cryptocurrency has been increasing. In addition, limiting the use of this crypto should be done to prevent many parties from using this system where payment is easier and requires two-party namely the seller and the buyer and no longer need to intervene the third person like the bank. Because of this, the bank may suffer losses and may also be closed by many who choose to use a cryptocurrency system rather than dealing with banks. When Cryptocurrency is more prevalent it may result in no bank funds and loan services will be taken over by a private company as a basic bank operation are coming from a deposit of its users. Hence, many banks that use blockchain technology even though this cryptocurrency is still unacceptable as the government does not recognize it.

These rules and regulations are in place to prevent money-laundering and other financial crimes. Cryptocurrency can be a contributor to money laundering due to the lack of control and ignorance of the amount of bitcoin or other digital money boosted by the user. This is because cryptocurrency is private and information can only be known by the user itself and third parties may not know info about other people acquiring how much bitcoin that the users have. As such, these Rules and Regulations are made to ensure the safety of its users. Cryptocurrency is definitely a safe-to-use type of money because users' personal information will not be known to anyone but it does not mean that they can be avoided as a result of hackers and data thefts. Each computer has their own number or key in performing transactions within the blockchain system. The careless user can cause the person to hack the computer and all user information will be used by them.

Abu Dhabi

Abu Dhabi has been decided to regulate the new regulation to provide better protection for cryptocurrency users in their country from the crypto money theft to provide better protection for cryptocurrency users in their country than crypto money theft. In addition, they make such regulations to curb money laundering crimes and also prevent terrorist attacks. Majority this virtual money is unregulated and their intention to renew this regulation is because there have been a lot of cases on the theft of the crypto money value caused by the hacker.

Canada

The purpose of the rule that used in Canada is to prevent money laundering and terrorism and also to control the virtual currency that rampant control. If anybody who makes bitcoin changes from the outside should also be registered as a money services business. The Government of Canada is of the opinion that this virtual money is also called a barter system for the conversion of goods and services without the use of legal currency. Nowadays there has been a money laundering case. Money laundering is used for the purpose of obscuring the eyes of the authorities and also to commit crimes. In order to support the terrorist activities by buying weapons, it is hurting the hope that terrorists will buy more weapons than they can

Ecuador

In Ecuador, while Bitcoin and other virtual currencies are banned, users who continue to use virtual currency will be subjected to severe judges such as prosecution and all circulated and asset in bitcoin trades face confiscation. The purpose of owning digital currency ownership is to ensure that the digital currency can be converted to US Dollar money which is their native currency. The creation of digital money alone can encourage people to use it and legally. Digital money publishing by itself can make it easier for people to use the money without losing money. The use of cryptocurrency money like bitcoin, sometimes its value is uncertain. It may be expensive at this time and it may also be the price tomorrow will decline. This decline may occur drastically and suddenly unexpectedly. Therefore, the use of digital money alone is a better option because its value can be controlled and supervised and not too worried about the loss.

Malaysia

Malaysia has agreed to set rules and regulation on the use of this digital money or digital currency by following their rules. First, digital money users must be registered and informed about their operations in Malaysia. The user must also have their protection from the risk they face and this digital money user must have a Customer Due Diligence (CDD) regardless of which services user at the risk.

Austria

Austria has been decided to use the rules for cryptocurrency as same as the gold. The purpose of this use is to ensure the safety of consumers, to legalize their sales as well as tax collections on users. Austria also intends to use this cryptocurrency to avoid theft problems following this cryptocurrency is good at storing user data. For rules related to ICOs is to help its users become victims of fraud especially market manipulation, insider trading and fraudulent activities. Since many have started to know about this cryptocurrency then there are many banks that are beginning to be interested in using this cryptocurrency. It is evident that some banks have used the Ripple system and are not Bitcoin. With the use of Ripple has many banks and financial sectors interested in using it.

Australia

Australia has made a decision that a cryptocurrency is a legal tender to their country. Australia does these rules and regulations to avoid money laundering and even anti-terrorist following the current situation. With such a rule, cryptocurrency users will become more numerous in Australia as they will be protected from various problems as they have been controlled by governments and regulatory bodies with the presence of consumer control being shielded from fraud, money manipulation and even countries will be protected from crimes and terrorists. the Australian government not only performs these rules on its user security but they also want to ensure the development in the financial sector with the use of technology such as blockchain that most cryptocurrency use. Australia also collects taxes from purchases and other bitcoin money purchases or other cryptocurrencies under good and service tax to avoid double deduction on taxes as before.

Russia

Russia has to make a regulation on protecting the users to avoid losses and also controlling the rate of using digital money like this cryptocurrency. Russia has made laws related to all that involves digital money. Russia also has been decided to use their own digital currency which is CryptoRuble rather than uses Bitcoin. This law is to ensure that the money is valid and has been accepted in the country and facilitates the recording. This digital money will be controlled by the government to make sure the record transactions have been truly conducted and also to prevent the increase in the legal cases in their countries. This attempt was made to ban another crypto-mining system and focus only on the currency. They also decided to give an of charge 13% tax for the operation of crypto money

Conclusion

The use of Cryptocurrency is not good because cryptocurrency has many problems especially in implementing the law on it because cryptocurrency is decentralized. When it is decentralized, any money outflow and crypto money transaction cannot be easily tracked due to the lack of control of the authorities. In the event of decentralized this user will not be afraid to commit a crime. Most countries still do not approve of crypto money, but they still cannot control the crypto user's use as it involves transactions that use virtual or internet which cannot be shut down because it is a non-stop and many users today use the internet in a day-to-day life day.

Secondly, crypto gives a bad impact to the user for losing crypto script. It is undeniable that the crypto money is highly regulated by the system and only users who know their own password and data but if the user is negligent as forgetting to log out and there are people who use the desktop and steal it without the user knowing it. In addition, the crypto will disappear if the user forgets their password.

Thirdly, it's hard to change it to cash and it's hard to spend. Crypto money can only be used in a country that has legalized such money in Japan as Japan is the first Crypto money maker. if in Japan it is easy to use because he is legal and can make a purchase transaction using bitcoin and other examples in China exchange rate they are in exchange to exchange yuan money to crypto or crypto to yuan, therefore, the growth is relatively slow compared to in Japan or country legalize it and let crypto investors run to Korea or Japan because there are more to use this crypto money. In other countries, especially countries that do not recognize crypto money like bitcoin, if users want to buy goods but have no money but there is still money crypto they cannot use the money because the money is not legalized and used formally even though the person has a lot of crypto money.

Fourth, exposed to the risk of loss. Some people have spent a lot of money on buying a computer system that can access this cryptocurrency. The things they think are the profits they will get from mining results. The tools in this cryptocurrency cannot be cancelled so that users who use the mining system for cryptocurrency should be sensitive and careless to avoid unwanted events. If the mistake of transferring the cryptocurrency will disappear from the user's wallet crypto and the user's crypto rate has decreased and may also be lost if it is wrong to grant this crypto money. If the file is lost and the user wants to redeem the user's file, they should redeem it using bitcoin. Users who use cryptocurrency like this bitcoin do not know who sent and received unless the sender n receiver is registered under cryptocurrency. if our computer gets hacked and people know the secret key to the user bitcoin money will disappear. All of these cryptocurrency transactions should be done quickly because every one block has some unidentifiable transactions of the beginner and who is the end.