Why Does Cryptocurrency Need to Be Regulated?

<p>Could we possibly live in a world devoid of rules? Yes, in theory - we can survive without government, as our forefathers did. At its most extreme, this is referred to as anarchy - a state of lawlessness and disorder.</p> <p>In reality, humans have discovered that regulations are critical to the development of a harmonious society. To foster a positive culture, we require structures and rules.</p> <p>Elinor Ostrom, a Nobel laureate economist, observed that when people are required to manage shared resources such as land, fisheries, or irrigation water, they spontaneously construct rules.</p> <p>Indeed, we have seen throughout history that every evolving industry undergoes a process that concludes, to a greater or lesser extent, with regulation. The most heavily regulated industries are those with the greatest potential for harm.</p> <p>Consider the pharmaceutical industry, which is now heavily regulated to ensure that people around the world can rely on affordable and safe medications to protect their health. Prior to regulation, you had opportunistic con artists peddling fraudulent cures to the public.</p> <p>Education is another sector where regulation ensures that the same high standards are adhered to by all institutions in order to foster trust. Food supply and hygiene are also strictly regulated to ensure the provision of a basic human need. Regulation has benefited these industries and countless others.</p> <p>This debate is currently raging around cryptocurrency. Elon Musk, CEO of Tesla, was recently asked whether the US government should be involved in crypto regulation. 'I believe it is impossible to destroy cryptocurrency, but governments can stifle its advancement,' he said. 'I would advise you to 'do nothing.'</p> <p>The entire crypto world is motivated by a single word: liberty. Simply the fact that governments cannot access your wallet is a significant victory for liberty.</p> <p>This is not to say that crypto should be used for criminal purposes or that its image should be tarnished as