Cryptocurrencies have conquered the world by storm ever since they first appeared on the market. While their momentum and popularity have swung back and forth over the years, we can say they are still highly present in the eyes of businessmen and investors, as well as ordinary people. Nevertheless, using cryptocurrencies and the technology behind them does seem to be both promising and problematic at the same time. We have recently witnessed many countries in the world, led by the European Union’s example, attempting to find ways to upgrade the latest crypto technologies and their usage while at the same time keeping the users as safe as possible. Since the vast majority of people are still skeptical about cryptocurrencies and do not know much about their origins or usage, as reported by a survey carried out by betting picks site BettingPicks4you.com, with the aim of investigating the link between sports betting and cryptocurrencies. For this, we have decided to insert several short lines just to share the basic information.
What are crypto property, cryptocurrency, and tokens?
Crypto property represents someone’s digital possessions that can be utilized as a subject of exchange or investment. Unlike traditional banking, with crypto property, there is no need for a central register. Instead, it is based on the technology of decentralized records of transactions via computers. The transactions are completely private, meaning that no central bank or any other significant institution can guarantee safety.
Cryptocurrencies represent alternative ways of making transactions. The first crypto property has come in the shape of Bitcoin (the maiden cryptocurrency we have become familiar with) in 2008, following the approval of the central bank. Nowadays, there are more than 6,000 distinct cryptocurrencies with a total estimated worth of $350 billion. Its value changes constantly which makes the regular everyday usage much more complicated. These changes are the main reason why crypto properties are still considered a form of risky investment rather than a stable currency.
Last but not least, we must mention the tokens. They represent the latest version of the crypto property. They are normally issued for gathering capital for new business projects or startups. These new variants, such as the stable cryptocurrencies, also known as stablecoins, could have much greater success. The reason is that stablecoins secure safer transactions because their value is covered with real property.
What must you know about cryptocurrencies?
The main reason for such a massive appeal for cryptocurrencies lies in the fact that you can surpass the main registers and country institutions given that all transactions are made between two parties exclusively, without any mediums in the process. It is exactly the lack of proper transparency that creates risks and worries for the final users. When they make transactions with cryptocurrencies, people can’t count on protection from the country and its institutions. They are often not well equipped with the information required for making crypto transactions (at least the majority, although there are always exceptions), which makes them vulnerable to the new and ever-growing market. Moreover, the wider the cryptocurrency network and usage is, the easier would the country sink into financial instability, financial crime, and the manipulations on the market. The mere fact that the transactions are anonymous opens the doors for criminal activities through the still unexplored crypto market.
The Advantages of the new regulations
Many European countries are working on the new regulations that would increase the cryptocurrencies’ potential and limit the risks. The new rules would be there to provide juridical safety, protect the customers and investors, secure financial stability, and support innovations.
European Union have already made a big step by creating the Cryptocurrency Market Regulation this year. According to the regulation, the new set of rules covers transparency, authorization, and control of all crypto transactions. The Members of the European Parliament have gone one step further in wishing some of the crypto tokens to be under full control of the European Supervision Institution for Banking. From now on, the companies who work with cryptocurrencies will need to inform the customers about the risks, expenses, and fees bound to every transaction. These measures would significantly help the problems such as money laundering, market manipulations, financing terrorist activities, etc.
It is worth noting that the new measures by no means aim toward slowing down the crypto markets. It is just the opposite – by making everything transparent, the aforementioned resolutions can only help the further expansion of cryptocurrencies. After all, all successful countries want to extend the digital transition by supporting innovations. In regards to this, the European Parliament has already approved new test rules for the market infrastructures based on the technology of decentralized logging of transactions. It will be very interesting to progress these rules shortly as we all expect cryptocurrencies to play a bigger role in the global markets once they become more stable and thus more attractive to the masses.