A “virtual currency” is a sort of digital money that frequently stays uncontrolled. Virtual currencies are seen as including “cryptocurrencies” like Bitcoin and Ethereum. A cryptocurrency manages and controls the generation of new currency units and uses encryption technology to keep transactions safe. Such cryptocurrencies exist and are traded on specialized, public blockchain networks. Cryptocurrencies are not recognized as legal money in many places since any nation or government does not back them. Any associated bodies do not issue a cryptocurrency, and assets like bullion do not back it. As opposed to traditional forms of money, cryptocurrencies are traded frequently globally due to their potential for significant returns, which can create wealth for traders. This calls for a comprehensive approach to cryptocurrency regulation. The exchange of cryptocurrencies operates on the basic economic premise of supply and demand. The structure of Bitcoin has presented difficulties for many regulators, as most have struggled to discover ways to manage it. As a result, some nations banned or made it illegal, while others maintained their observance, and others devised methods to tax and control its activities. The current study examines the development of cryptocurrencies, the legal problems surrounding them and their trade, and the situations that call for strict control.
March 29, 2024
