The cryptocurrency market is on the verge of a monumental shift and the future of the digital economy depends on this upgraded infrastructure replacing the age-old banking systems. Cryptocurrencies are an indispensable part of this transition and adapting to digital coins enables access to money at any time. Just as the consumers, it is equally important for the service providers, regulators, and brokerages to thoroughly understand the dynamics dictating prominent digital coin operations.
Penurious regulation establishes and perpetuates the safety and transparency that a customer expects from a brokerage. However, the regulation of a brokerage is entirely different from being licensed or registered. Whereas, a regulated trading brokerage is a place over which either the government bodies or rarely any industry or labor groups bring to bear a certain level of control. Regulations often involve determining who can enter the market and the prices they might charge and are controlled by the government. The government body’s main function is to regulate and surveil the financial and economic system.
Regulation limits the market participant’s freedom or allows them special privileges. Also, regulations include rules about how the goods and services can be marketed, and the consumers’ rights to demand refunds or replacement; product’s safety standards, workplaces, food, and drugs, alleviating the environmental and social impacts, and the level of control permitted for a given participant to assume over a market.
In fact, there is a key difference between being licensed or registered and being regulated. In any case, licensing and registration don’t match with regulation. At the same time, it is equally crucial to understand before using any cryptocurrency, that unless the issuer is being held accountable by a prudential regulator, your funds and consumer protections are likely at risk.