
We now live in the world of the internet which is forever improving thanks to decentralised networks and blockchain technology. This means our online security is also improving with the tech we can now use.
Digital currency has been one of the most-discussed topics for the internet in the last decade. It continues to be a talking point to news stations and everyone believes this is the future of currency.
Despite technology improving, there are some legal challenges, especially with cryptocurrency. Let’s look at the impact of digital currencies and the legal challenges we face with them.
Rise In Litigation
Legal action has increased significantly in the last 2-3 years, especially in 2023 with the arrest of Sam Bankman-Fried, the former FTX crypto exchange owner. However, there has been further action on other cryptocurrencies such as Binance which was one of the leading exchanges. These arrests dominated news outlets all around the world and led to a slight dip in value for all cryptocurrencies.
Private litigation is continuing to increase and this is a good thing. This market is worth billions, if not trillions of dollars so it is important that investment fraud lawyers and criminal investigations crack down on those who misuse crypto trading.
U.S and International Regulation Designed for Tackling Digital Assets
Digital assets have previously complied with the normal regulatory laws of trading and cryptocurrency however that didn’t work and many people found holes in this system. These previous laws do not discuss the tax implications of digital assets.
One of the biggest issues with digital assets is that the SEC has treated these as if they are traditional securities. That is not the case which means there has been a lack of rules that are designed for cryptocurrency.
There are now many countries around the world designing laws specific to digital assets and this is what is needed for crypto scams. The more countries do this, the more security people will have with their digital assets.
Privacy Takes Centre Stage
Privacy has become a massive part of digital assets. Biden has insisted on the development of cryptographic tools that help preserve individuals’ privacy.
During the 1990s, email was underway and many businesses and individuals were using this form of communication. During this period, there was an attempt to control the publication and exportation of privacy-preserving cryptographic technologies to combat terrorism or other bad actors. Since then, any attempt to regulate the publication of computer code has to pass a scrutiny test required for government regulation.
To Conclude
There are many concerns with digital assets, especially with security in other countries. Tax is also an issue with cryptocurrency however, there are improvements being made for cryptocurrency.
As each year passes by, there seems to be an increase in crypto fraud and misusing cryptocurrency. Online scams have also increased which is why these laws and governments are putting laws in place to combat these issues. This isn’t something that can be repaired overnight. That is why many banks have stopped their customers from depositing money into cryptocurrency accounts to avoid going online.