World: Bitcoin inconsistent regulation harms rather than benefits industry

Friday 24 October 2014 00:56 CET | News

Global Bitcoin inconsistent regulation actually does more harm than good to the digital currency industry, according to recent findings, reports.

Moreover, the supposed regulation does not grasp the benefits inherent in the digital currencies` technology, opportunities and disadvantages, according to the Global Digital Currency Regulations: Divergent Paths note issued by Mercator Advisory Group.

The varied approach to regulation also makes some jurisdictions more competitive than others, as digital currency companies are more likely to incorporate in areas with a clear regulatory framework. The question of compliance costs cannot be ignored, as inadequate or burdensome regulation could render digital currency less competitive.

However, properly regulated digital currency services will gain, too, as companies operating in reputable jurisdictions with effective regulation will benefit from higher levels of consumer trust, thus attracting more business and offsetting compliance costs.

As far as the financial industry is concerned, digital currency remains a divisive issue and, according to the Mercator note, the state of affairs will not change soon.

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Keywords: World, Bitcoin, regulation, hindrance, inconsistent, consistency, digital currencies, cryptocurrency, technology block-chain
Categories: DeFi & Crypto & Web3
Countries: World
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DeFi & Crypto & Web3

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