Why is cryptocurrency under surveillance?

Let’s imagine that a writer made a mistake in his sold-out book. Now it has to find all the readers and fix it manually. So, very superficially, one can define the problem of regulating what was created precisely by bypassing any control. Therefore, blockchain technology, the foundation of cryptocurrencies, does not allow itself to be “restrained” so easily.

Reasons for interest from the authorities. Why so insecure?

Since about 2017, the crypto market has developed to the stage of a financial structure parallel to the global banking system. Anonymity and decentralized accounting do not allow us to find out and influence who sends funds to whom, how much and for what purpose. Given the current coverage, this is a real threat:

• global economy – possible outflow of money from interbank circulation;
• global security – financing of terrorism, drug trafficking;
• the country’s economy – such transactions are not taxed and are not attracted as investments;
• security of citizens – an ideal way to support the growth of crime.

A separate problem lies in ICO – the launch of new currencies with the attraction of capital. Unknown projects mostly disappear with the money of unfortunate investors or work on the principle of a pyramid.

Ways to change the situation. How?

The only option is to amend the law and define responsibility. The most effective measure is to recognize Bitcoin and other coins as a means of payment and property, which is what most bills focus on. The turnover of such cryptocoins can be more easily controlled in the usual ways:

• registration of wallets and accounts indicating the owner’s details;
• tax payment policy;
• declaration of funds in accounts;
• maintaining a register of sent and received transfers;
• control of market participants (exchangers, exchanges, etc.);
• regulation of ICOs at the level of control over the placement of company shares.

The Ministry of Finance of the Russian Federation has already compiled a package of projects that, in addition to the above, should oblige all owners to independently transfer data without checks or requests.

A special approach – as a solution to the problem

The essence of crypto regulation is actually based on compromises and the search for optimal options. Weak control can lead to the development of a legal shadow economy, while too strict control will destroy the meaning of the idea of ​​the existence of such assets. In theory, a “snow avalanche” situation could even arise. If there is a sharp reset that causes panic, the exchange rate will become zero.

All work done is now at the stage of projects or partial implementation. Therefore, their legal status is not fully defined today.
Example: the Russian Law “On Digital Financial Assets” allows the sale of cryptocurrency, but prohibits payment for goods.
To summarize what I have read: finding the “golden mean” may take years, but it is necessary.