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Since bursting onto the financial scene in 2008, bitcoin has emerged as the face of financial technology. The digital currency has both disrupted and confounded much of the traditional investment framework currently in place. In order to understand this crypto-currency further it’s important to understand the steps being taken to regulate, and therefore legitimize its existence.
Internal Regulatory Factors
Part of the reason bitcoin must be regulated is that its value is already high, and continues to grow. From January 2016 to January 2017, bitcoin experienced a rise in price from $394 to $896. One of the explanations behind its exponential growth is that it is self-regulating: There is a set cap on the amount of bitcoin ever allowed in circulation (21 million, to be exact).
An additional regulation method is the rise of other blockchain currencies to compete with bitcoin. Crypto-currencies like Ether have arisen as an alternative to bitcoin, though the learning curve to begin mining a new digital currency remains an obstacle to both Ether and all other competitors.
Given the anonymous nature of bitcoin transactions, international monetary institutions are attempting to impose regulatory sanctions. In early 2017, 400 attendees from across 60 countries met in Qatar for INTERPOL’s Digital Currencies & Money Laundering Conference. In doing so, it signified a cooperative attempt to prevent the negative behaviors associated with bitcoin.
In the U.S., New York’s BitLicense was the first attempt at bitcoin regulation. Put into practice in June 2015, the mandate imposes similar regulation on bitcoin operators as it does other commercial institutions.
While attempting to find ways to regulate bitcoin, it is essential to not infringe upon its efficiency and other consumer benefits. Additionally, if you currently deal with bitcoin it is important that your customers understand the latest developments. Software localization offers the best solution for this, as you can make sure the technology used to deliver information and bitcoin-related information to consumers is the most accurate possible, regardless of what language they speak.
This post was contributed by Morningside Translations, a professional translation agency specializing in interpretations, document translations, and localizations. They bring their global solutions and local expertise to every client and industry vertical, from life sciences to legal.
Founder & CEO at Unicorn Bay. Masters Degree in CAD/CAE developed several portfolio optimizing products for banks. Has a great experience in investments and math behind the Portfolio Risk Management.