Some time ago, cryptocurrencies seemed like entertainment for the elite. However, today it is one of the most common trading elements in the market.
Statista reports that as of 2021, there are more than 6,000 cryptocurrencies. However, the top 20 cryptocurrencies are believed to account for nearly 90% of the entire market.
However, heads of government worldwide have concerns about using cryptocurrencies, and they are not in vain.
Cryptocurrencies make international payments more efficient, convenient and secure. They also speed up all transactions with them. However, there is also the possibility of money laundering and terrorist financing.
To combat this crypto-crime, the government needs to work with technology experts to develop protective mechanisms for regulating cryptocurrencies.
Digital currencies are our future. Therefore, international coordination and action by individual countries are required to close the legal loopholes that allow cryptocrimes to be committed. Questions of this regulation are already being submitted to global conferences and even to the World Economic Forum (WEF)
What are cryptocurrency research tools there for investors now?
Several platforms and tools have been created to help investors in the cryptocurrency market. Thanks to them, you can understand the security and adequacy of the chosen cryptocurrency.
Messari is a platform that collects cryptographic data and analyzes charts. It enables investors to make more informed investment decisions. Messari offers free access to the platform, but you can opt for premium for more advanced versions.
Glassnode is a data processing and analytics platform that delivers some data and analytics. The platform also generates data to help study the trade inflows and outflows of various coins.
LunarCrush monitors social media and cryptocurrency reviews. It uses AI and ML to gather information about various cryptocurrencies on social media. You can use this information to make trading decisions if you are overwhelmed by investments.
Coin Metrics is a kind of scout in the cryptocurrency market. The platform allows you to access over 100 assets and over 300 metrics so you can evaluate virtually all charts and spot market trends.
Santiment is a crypto research tool that provides web and social media data for 1,500+ cryptocurrencies, helping you predict the price movement of any cryptocurrency. It also provides background information and behavioral reports to help investors know about the upcoming changes.
What is insecurity in working with cryptocurrencies?
Although some trading platforms and financial institutions have implemented the know your customer (KYC) protocol, this is not common practice. It makes us vulnerable to syndicates that buy crypto assets for money laundering and terrorist financing, bypassing currency controls and disguising illicit financial flows.
To avoid such significant security problems, governments of different countries must create a common regulatory framework for regulating crypto relations.
Blockchain technology allows the world to think differently about money and economic ideas and creates much-needed innovation in the financial markets. When blockchain scalability issues are eliminated, and technological solutions reduce the risk of fraud, digital currencies can bring positive experiences worldwide.
Today, dedicated software development in crypto regulation is focused on balancing the rules that will govern crypto relations and the industry’s organic growth.
The need to balance.
According to industry leaders, if regulators severely curtail the growth of cryptocurrencies through strict new rules, the US will drive innovation overseas, risk dollar dominance, and kill digital finance prospects.
Many countries are afraid that cryptocurrencies will replace their national currencies and that financial life will cease to be regulated. The US government expresses such concerns. However, instead of pursuing cryptocurrencies, one should strive to integrate the beneficial aspects of these tools into existing structures. Forbes writes that blockchain and crypto payments have quantifiable benefits that are widely recognized, recognized and should be used to the fullest extent possible.
The financial crises previously faced by the world’s countries have shown that our economies are very closely interconnected. The speed at which crypto assets can move means it will be difficult for authorities to control, stop, or reverse transactions on these vast networks. Cross-border dialogue is imperative, especially between technology bureaus, to keep the situation under control.
The reality is that cryptocurrencies are ten years old and financial institutions should have responded faster. Still, the solution to problems like the anonymity that allows crypto crime to flourish is not possible with existing rules or systems.
Author’s bio: Anastasiia Lastovetska is a technology writer at MLSDev, a software development company that builds web & mobile app solutions from scratch. She researches the area of technology to create great content about app development, UX/UI design, tech & business consulting.