It will take time to develop universal Bitcoin rules

Image source: Dazhi

Bitcoin rules, good or bad? The debate continues. Governments and central banks say it is necessary to protect the interests of the country and its citizens, but a section of the Bitcoin community disagrees. According to Bitcoin enthusiasts and many community members, Bitcoin is an autonomous currency that is not subject to interference from any government or other authority, and should remain so.

However, their opinions will not have much impact on government actions, because if the government deems it necessary to prevent money laundering and other illegal uses that may endanger national security or dilute the national economy, the government will work hard to formulate relevant regulations to eventually successfully help them regulate or even control the use of Bitcoin. However, in some cases, the regulatory authorities may also "screw up" things, such as the New York State BitLicense. The Bitcoin License imposes strict requirements on companies operating Bitcoin or other cryptocurrencies to operate in New York State, but in the end many Bitcoin companies left New York because they were unwilling to comply with these unrealistic compliance requirements.

What is the solution?

A solution was recently proposed in a column written by Martin Taylor on NASDAQ - the implementation of international regulations . Under international regulations, there will be a framework or set of guidelines that each country must follow to establish its own rules. To help everyone understand better, we can use WIPO - World Intellectual Property Organization and intellectual property as an example. WIPO is a proprietary organization under the United Nations Organization and it has a set of special guidelines that all member countries must follow. So far this model has worked well, of course, except for some minor obstacles that have occasionally appeared. If there was a separate management organization like WIPO in the market, the regulatory system of digital currencies might be more beneficial to the Bitcoin industry.

Martin Taylor quotes SS Mundra, Deputy Governor of the Reserve Bank of India, in his article: "By their nature and design, they (Bitcoin and electronic money) are global innovations... They will require global coordination rather than a framework that can be applied to any specific geography." This quote is very appropriate in the context of his article, because we have seen the extent of damage that localized rules for Bitcoin can cause through the BitLicense example. And this damage could be worse.

Now, it’s up to us, the members of the Bitcoin community, to decide what kind of rules we want to see and follow in the future.