Cryptocurrency became a hot and interesting investment model in 2009. Bitcoin and cryptocurrency are used interchangeably. The market value of this investment model has grown substantially. Other than Bitcoin, there are more than 14k cryptos in the industry today. The total market volume of cryptos has also increased by more than $3 trillion. Check at Bit Alpha AI.
How do cryptos evolve?
Ever since the launch, there has been positive and negative publicity around it. Many investment experts consider cryptocurrency or digital currency as the future. But there are still a few who believe cryptos are a threat to the economy. Cryptos make an economy vulnerable and open to various risks. It is due to the inherent working model adopted by cryptos.
All cryptocurrencies make use of a decentralized finance model to enable transactions. It means the virtual or digital currency is transferred from one person to another. The entire transactions undergo on the web without involving any third-party agencies. The tokens are transferred from one digital to another digital wallet. In such cases, the banks or other regulatory agencies do not monitor these transactions. Some data miners solve certain algorithms or mathematical puzzles. This process is taken up during every crypto transaction. The complexity of the problem and puzzle depends on the volume of transactions.
Since there is nil involvement from regulatory authorities there is no control over transactions. The volume of crypto transactions is huge. Government authorities are involved in the process of liquidating these holdings. A crypto holder can covert the token to any currency rather than tying it down to their native currency.
Crypto regulations around the world
Despite the growing negativity and arguments around cryptos, the demand for crypto continued to grow. The market is an epitome of price fluctuations and volatility. The market is open 24*7 making major changes in the prices of each token. Along, with cryptos, various crypto exchanges are enabling daily trading.
Many countries including India are working on various crypto regulations. Many countries have imposed serious regulations on crypto exchanges. Every crypto exchange goes through a rigorous license adoption process. Crypto exchanges are under the direct monitoring of multiple regulatory authorities.
Yes, certain countries have imposed strict regulations for crypto trading. And there are a few others who are pretty lenient in encouraging crypto investment.
The Bahamas turning into a crypto hub
One such country that has taken a lenient approach toward crypto trading is the Bahamas. The country is making an innovative approach to enabling crypto trading in the country. Measures and efforts are being taken to attract major investments in the country.
The Central Bank is front-ending this entire project. Smart contracts and regulations shall be put in place to encourage legitimate groups. Licenses and other trading activities can be undertaken by those who fulfill regulations. It will also allow the country to attract investments and create employment opportunities. The country is also looking at expanding its market and making digital payments easier.
Smart yet flexible regulations
Yes, during a recent convention on cryptos, the Bahamas PM opined that the country is looking at smart solutions. The proposal put forward by the central banks will enable crypto trading easier. Companies and crypto trading agencies will find it much easier to operate in the Bahamas. The regulations will be flexible to cater to the business requirement. It will also allow businesses to flourish through innovative solutions.
The country has also taken steps to ensure appropriate control on the use of crypto for money laundering or terrorism. The Bahamas also announced that it is on the lookout for setting up a special economic zone. This zone will operate exclusively to encourage crypto trading companies to operate. It will offer a cost-effective environment to operate.
The Bahamas also released its first digital asset in 2020. The country also major steps in having their ally established with CBDC. Following the footsteps, today ten other countries have launched their CBDC. A few others are in the pipeline to introduce one on their own.
The Bahamas has always been a go-runner in the tourism sphere. The country has got major tourist guidelines. Now the country is looking at expanding its crypto regulations as well. It will allow for further growth in the country.