Recently many of the countries and the companies who are all praise for the technology raised a joint concern for the regulation of the blockchain movement on a global scale. This was mainly to curb the practice of the illegal transactions that happen on a regular basis on the platform and with more and more innovative ways for the hackers to find their way through to get their hands on digital assets, it has gone into a growing need.
HongKong Takes the lead:
Now there are a lot of ways in which the menace can be curbed and the city of HongKong has brought to light one of the most innovative methods to regulate cryptocurrency trades from their side. There are a lot of ways in which the HongKong financial sector is planning to implement and the first plan is to make sure that they establish a Financial Action Task Force (FATF). The FATF will impose all the rules and regulations that need to be followed for the implementation of Crypto trade between users. There are a lot of other criteria as well that ought to make the trade to become valid as well. Now, these drastic moves from the financial heads of the city are to mainly regularize the flow of cryptocurrency in the country.
This new venture is to first target Virtual Asset Providers (VASP) to make sure that there is monetization done before the transaction is complete between the traders in the network of such VASP’s. They are also planning to target finisher over the counter brokers who are a possible source for the infiltrators to get into the system. The system which was at first developmental and supportive of such structures can be a little bit difficult to get back on track after the FATF implementation.
The biggest threat one finds with drastically varying and developing technology is the need for development and usage control. Now anything that is out of control is bound to bring severe consequences but with proper regulations and rules in place, there is definitely a controlling factor involved.
Why aren’t these longterm?
Many of the technologies like the blockchain technology is seeing the better days it was supposed to see long ago, but with a lot of improvements and advancements in the technology, it is definitely making steady progress. Many of the cryptocurrency users who are on the platform are having a lot of new and innovative ways to move things ahead, but there are quite a few that make the cut.