Amidst the emerging cryptocurrency trends we are seeing in the web3 space, there are many naysayers as well, attempting to write it off as simply a new phenomenon. However, crypto happens to be the future of money, with web3 aiding it as the decentralized future generation of the internet. Crypto and web3- two emerging technologies of today- are intricately intertwined, further necessitating crypto adoption around the world.
But as with any technology, over time, we’ve seen that crypto has come to be often used as a weapon in a bad actor’s hands. And many have chosen to take advantage of the largely unregulated global crypto markets to wield this weapon for terrible scams, tax evasion, money-laundering, and a lot more. Despite this, the total cryptocurrency market cap continues to grow and attract significant attention from investors and regulators alike.
So even after being the poster child for economic evolution, it’s really no wonder that cryptocurrencies are still being kept under a microscope by a lot of critics, especially in the context of crypto adoption. According to them, it’s irrelevant that retail users make a lot of capital gains (or simply, profits) through crypto investments, there is no sense of reliability about their volatility or legitimacy.
In 2022, by the second quarter, Bitcoin had already lost 58 percent of its value compared to what it stood at in the second quarter of 2021. In the ever-changing landscape of cryptocurrency trends, critics raise another pressing concern about the uncontrolled expansion of cryptocurrency can result in the decline of the monetary sovereignty of the countries.
These reasons, amongst others, have become a solid ground for agencies like the International Monetary Fund to express their concerns.
Cryptocurrency Trends: United Nations on Cryptocurrencies
In 1948, perhaps the most famous international charter was signed on by the world – The Universal Declaration of Human Rights. It recognised a number of fundamental freedoms for people – from freedom of life and liberty to freedom to property, to thought and more.
It’s a fair extrapolation to make today that such freedoms argue for the freedom to own your money, own your assets and keep them from assertive control externally. Money is freedom.
In August 2022 however, the United Nations Conference on Trade and Development (UNCTAD) made a statement regarding cryptocurrency not being profitable. The agency raised its concerns in statements like, “All that glitters is not gold. The cost of leaving cryptocurrency unregulated” can be very high. Some of the concerns that the UN raised are related to:
- Economic instability,
- Security of monetary systems,
- Domestic resource mobilization,
These concerns overshadow crypto’s monetary benefits, which, according to UNCTAD, is why there is a need for a ‘Universal Charter’ for the crypto assets. Regulating crypto assets can help sustainably bring out the positives in blockchain and cryptocurrency enhancing crypto rankings. This would result in helping the governments maintain their monetary sovereignty by managing their digital currencies or issuing laws that taxed and capitalized crypto assets.
Although making laws for crypto assets is important, if there could be a universal charter for the assets that aim to bring universal change, it would be a positive sign for the finance world and potentially impact the overall total cryptocurrency market cap.
Cryptocurrency Trends: Actions from Nations
In notable recent cryptocurrency trends, many countries like the USA, UK, Japan, China and India are already publishing their plans on a charter that can help regulate crypto leading to more promising crypto adoption. The US had already published its new framework for regulating crypto assets which transferred powers over to the SEC and CFTC to take action against companies and individuals over unethical or illegal activities. The famous Ripple vs. SEC case is an example of how crypto regulations are on the way. Even though China was one of the first countries to welcome cryptocurrency, it has now banned Bitcoin mining and all crypto exchanges.
The Chinese government has started rolling out its own cryptocurrency though, which makes it easier for them to regulate its usage. The United Kingdom does not have any specific charter for crypto assets, but it does make it necessary for all crypto exchanges to register with the government. They treat cryptocurrency as legal property. Even Australia and India announced their plans to regulate cryptocurrency in 2021. India even started taxing capital gains from crypto assets. So, some actions have been taken to regulate crypto assets globally.
The Need for a Universal Charter
Even though most countries are working to ensure that cryptocurrencies are not creating a loophole for bad actors, divided notions over its regulations pose a problem. With each country regulating emerging cryptocurrency trends differently, developers will obviously face an issue creating an application accepted by all. ‘Universal Charter’ is the need of the hour for all crypto assets. Countries around the globe should be working together with monetary agencies like the World Bank of IMF to make rules that apply to crypto assets as a whole globally, ultimately influencing the crypto rates. This will help maintain the integrity of the currencies while safeguarding common people from falling into the traps of scams or unimaginable losses.
A ‘Universal Charter’ can consist of common guidelines for regulations and management of assets in every country. Every country can have laws on how much tax they want over the crypto gains, influencing the crypto rates in the global market. With the help of such a move, the expansion of cryptocurrency globally can be turned in the direction where it achieves the goal of decentralization without only a few compromises.
Emerging Cryptocurrency Trends: Crypto 2023
Before we go, here’s a quick look at the status of crypto 2023 with some up and coming cryptocurrency trends.
- Crypto Adoption and Regulation: The UK, Hong Kong, Japan, and more global provinces are taking proactive measures to ensure regulation in crypto 2023. This is boosting adoption, ranking high among cryptocurrency trends.
- Crypto 2023 ETF: BlackRock, the largest asset manager from the US, has recently filed for a Bitcoin spot ETF, followed by many similar applications. Since the SEC has accepted them for review, an ETF approval might be on the cards for early 2024, making ETFs one of the prominent cryptocurrency trends.
- Green Crypto: As crypto adoption gets accelerated, green crypto is one of the crypto 2023 trends with more and more cryptos building environment friendly infrastructures.
And those were the most notable cryptocurrency trends of 2023!
Conclusion
As crypto adoption continues its upward trajectory, even a common reader must have come to realize how big it is. The growth rate of crypto is undeniably substantial. However, it is also important to announce regulations since crypto fraud, and use in illegal activities are increasing. So, to safeguard the interests of a common person, regulating cryptocurrency trends makes more sense than completely banning it. Digital currencies are the future requirement, which is why countries like the USA, UK, Japan, allow crypto developers and exchanges freedom.
But this is different from a ‘Mad Max’ scenario as they tend to manage the assets in their ways. A Universal Charter can answer all the needs of crypto regulations. Through crypto adoption, the ethical growth of cryptocurrencies can lead to a more suitable decentralized financial world.