Cryptocurrency has a regulation problem, and the ecosystem may be stranded if it doesn’t solve this issue. Crypto, by design, is a regulator’s nightmare. It’s transnational and not beholden to any institutional control, so it’s extremely difficult to regulate. Asides from that, decentralized currencies exist in a money market only regulated by the market, not the state. This means that they are fundamentally incompatible with regulatory pressure.
The question of regulation has hung over the head of the crypto ecosystem like the sword of Damocles. It dropped in 2017 when South Korea made a move to regulate Bitcoin. As a result, the entire ecosystem saw a massive dip. The sword dropped again in November 2019 when the Chinese government made a move to regulate cryptocurrencies as a whole. That episode saw Bitcoin sink to a six-month low.
If crypto is to continue its upward growth, it will need to solve the problem of…
