Although Bitcoin was only created in 2009, the first attempts at creating online currencies with encryption-secured ledgers were made as early as 1998. B-money and Bit Gold are the most known examples. They were, however, never fully developed. We had to wait for the financial crisis to accelerate the developments of digital cash. At the beginning of 2009, Satoshi Nakamoto mined the very first block of Bitcoin (BTC). Soon after that, Bitcoin miners started to build a network; one that’s now worth more than $1 trillion. Other cryptocurrencies (altcoins) were created in 2011.
The cryptocurrency industry was described as the “Wild West” at least until 2016: the year Japan implemented its first regulations. Since then many countries have legally acknowledged crypto as a real alternative for cash.
Cryptocurrency: an innovative approach
The main challenge for regulators is the innovative character of crypto written into the entire blockchain technology. Cash lacks the efficiency needed to resist the impact of blockchain and coins created within it, in the long term. That is precisely why the world needs to shift from conventional payment methods to cryptocurrencies.
At Exeno, we believe in innovation. To expand, we need to offer something new, something revolutionary. That is why we are the very first global online store accepting cryptocurrencies as the only payment method. After all, there are only two options: making progress or making excuses. And we’re really not into making excuses.
The future lies in regulation
The future looks bright for crypto. The United States, one of the world’s biggest economies, seems to be keen on crypto. The nomination of Gary Gensler, who has taught courses on blockchain and digital currencies at MIT, as a chairman of the Securities and Exchange Commission is a profound example.
European Union’ MiFID II (Markets in Financial Instruments Directive) classifies crypto-assets as financial instruments. However, the EU plans to evolve this directive and divide digital coins based on blockchain into a few different categories. This would more appropriately reflect the diversity inherent in digital money.
Many other countries are also working on proper regulations. As of right now, over 100 governments try to develop suitable legal frameworks. Some have already done that. Denmark treats cryptocurrencies as legal financial instruments and capital property. The Danish government implemented distinct anti-money laundering laws for cryptocurrencies. Singapore not only accepts cryptos but is also among the few jurisdictions that support the zero capital gains policy on cryptocurrency income. There are plenty of other examples of active approaches towards digital coins. Nonetheless, some governments remain uninterested in the topic.
It’s 2021. We have Exeno, an online shop that accepts only cryptocurrencies, and where you can find your favorite products. So, we need to have clear and comprehensible legal arrangements for crypto.
Regulation of cryptocurrencies is necessary to fully legitimize Bitcoin, Bitcoin Vault, and Ethereum, among others. Implementing pertinent laws and frameworks is another step into the future. After all, progress is impossible without change.