Bitcoin regulation is imperative, and promoting international regulation is the right thing to do

I don’t know why many Bitcoin supporters think that “regulation” is like a devil and they want to avoid it. In fact, in the United States, many people tend to support regulation, but they believe that regulation should be gradually established from state to state, rather than being uniformly formulated by the federal government. Any regulation from the international side is still a devil in their eyes. In fact, their idea is wrong. Bitcoin regulation is best achieved through cooperation among international parties.

Recently, Reserve Bank of India Deputy Governor哈什•修拉坦•蒙德拉said that collaboration among global regulators is necessary to reduce volatility and crime risks in digital currencies. He said:

“Digital currency technology is a global innovation…it will require global coordination rather than some kind of framework in one region.”

I agree with the president. Bitcoin is international in nature, so regulation at any local level is ineffective and even extremely harmful. I have said before that excessive intervention from regulators may be worrying, but to some extent, regulation is not necessarily a bad thing. Regulation is inevitable, so the discussion should not be whether to regulate, but what form of regulation should be taken.

I am actually a pessimist (actually I prefer the word "realist"), so I think the possibility that governments and financial institutions around the world will take action and reach an agreement within a few decades is very small. But I hope that before the governments reach an agreement, the Bitcoin community can manage itself and make government regulation unnecessary, which is of course the best. If not, then we can only obey the government's regulation.

National-level regulation has various inherent risks. For example, if the decision-making comes from one party in a one-party state, it is likely to lead to unreasonable regulation.

Although I think international regulation is better, it also has some disadvantages. International regulation is an agreement reached by multiple countries through consultation and compromise. Judging from the consistent performance of international policies, the final agreement is unlikely to be implemented. Just look at the agreement reached by the European Union.

In this light, you may find it a little strange that I support the views of the Governor of the Reserve Bank of India, but if you think about it carefully, you can still appreciate the benefits of this view. Because the essence of Bitcoin is decentralized, its purpose is to break national boundaries and provide barrier-free payment methods for people around the world, and the differences in Bitcoin regulation in various countries have created obstacles to the development of Bitcoin.