regulations on tradingCryptocurrency has been known for the security of the transactions. But hackers always seem to find their ways. Money laundering has not come down. Countries are now considering imposing regulations on cryptocurrencies. While there have been many nations that have resisted the penetration of these digital currencies we now find a lot of them come forward to embrace them and lay down rules and regulations to prevent fraudulent activities.

More nations are now considering regulations on cryptocurrencies

Japan had earlier legalized and also started processing the regulatory conditions for cryptocurrencies. South Korea also announced recently that regulatory guidelines for this digital currency would be released probably by March 2018. Other countries that have been part of the unregulated exchanges are now drawing inspiration and this is all set to make things interesting in the field of cryptocurrencies. So if you are into crypto trading ,using systems like Qprofit System , there is a lot to look out for in the coming years. 

Government rules have a strong role to play

We know well that major decisions, new laws passed by the governments can have an impact on the economy and the volatility in the market. With more and more countries now coming forward to define regulations for crypto trading, there have been drastic fluctuations observed across the world. Cryptocurrencies have seen explosive growth trends and this chaos is not something that the global nations would definitely be watching silently. Because the long-term impact of the cash flow in one direction and the impact of this on the other currency systems is something that cannot be ignored. To put a check on the growth and to control the volatility to some extent the government regulations come into the picture. 

Values drop as new rules are released

Contrary to the steady growth phase that was observed earlier there has been a near saturation observed and the values of several cryptocurrencies have been noticed to drop. After the earliest announcement from South Korea regarding the possible measures on regulation or ban of cryptocurrencies, prices had taken a hit. Once there was a confirmation that there would be no measures to ban cryptocurrencies but simply the rules and guidelines for their transactions the prices again saw a growth. Given that traders then felt safer to trade with cryptocurrencies the trends looked positive. This is an example how a government’s steps to regulate exchanges can either result in an uptrend or a downtrend. 

When there are regulations in place there might be a limit on the maximum increase in the value. This might be in relation to the other assets being traded as well. There is also the possibility of the creation of artificial demand or the induced scarcity of the assets so as to keep a check on the growth of one asset and prevent it from masking the others that also help in the nation’s economy. So in one way or the other, changes are prone to be seen with the increase in the regulations. But this would also prevent frauds and laundering activities and thus turn out to be beneficial to the crypto-traders in the long run.