Ukraine Invasion Shows The Need For Cryptocurrency Regulation
In today's article, we will talk about how the war in Ukraine demonstrated the need for Cryptocurrency Regulation. But before we start don't forget to subscribe to our newsletter and follow us on Instagram.
Now that I have your attention, let's begin with the story without wasting any time.
On 24th February 2022, Russia invaded Ukraine by launching the northern front from Belarus towards Kyiv, with a northeastern front attack on the city of Kharkiv. Shortly after the invasion began, the Ukrainian government tweeted out requesting funds in Bitcoin (BTC), Ethereum (ETH), etc. Soon over $60 million dollars were raised from people worldwide. Unlike support by governments, these funds were available to the Ukrainian military within minutes — not weeks. This goes on to show the power of cryptocurrency and decentralized finance. Cryptocurrencies provide a life-saving method of escape from such a crisis.
However, this power can be lethal to world peace if used by Russians. The same means to move money is also available to the Russians. Russia could use crypto to escape sanctions or even support terrorists across the globe. This is just the nature of this beast. It is inherently value-neutral. This makes me wonder if there is a way to solve this problem.
How Cryptocurrencies Could Save Russia From Sanctions: Click Here
Regulation: The Only Solution
As far as I can see, a regulated crypto landscape is the only solution. But, the whole point of distributed ledger technology, is to have no central authority. It is almost impossible to trust a government or an organization to impose and maintain controls in a way that is consistent and morally acceptable to everyone. Morality, in today's world, is relative; it really comes down to opinion. Something which is morally correct to me could easily be offensive or repellant to someone else. Even the world’s greatest philosophers have yet to come up with a satisfactory way of reconciling this disconnect. It is hard to guess how this will play out.
Luckily, we are seeing some progress in this matter many large crypto exchanges are now enforcing sanctions. According to many industry experts, it will be particularly hard to regulate crypto; people will soon find a way to bypass these restrictions. The regulators have not won this war. But they are tightening the noose on ways to circumvent crypto sanctions. This tells me that it is impossible to create a perfect system that allows funds through to where they are needed while preventing them from being used by bad actors. And that’s just because the world is never going to agree on who are the bad actors.
This is all for today; see you again soon till then, bye-bye. Also, all the sources for this article are listed below.
Facts on Ukraine war -- Wikipedia
Impact of crypto regulation -- https://academic.oup.com/jfr/article/7/1/48/6248122
Facts on cryptocurrency - Coinmarketcap