Cryptocurrency Regulations

More and more countries i.e., central banks) are coming up with digital currencies these days. It all started when China introduced the Digital Yuan in the course of the past few months and banned the use of Cryptocurrencies in the process.

Why? Simply because there is a potential issue when it comes to tracking how (Crypto’s) digital wallets tend to be used in Ransomware and other cybercrimes lately.

But what are ransomware in the first place? A ransomware is a malicious software that cybercriminals use to encrypt a user’s data and ask for money to decipher it. Failure to comply generally results in the data becoming permanently irretrievable usually within a couple of days of negotiation – although it has been observed that paying does not always guarantee their recovery.  

Just a few days back, a massive “sophisticated ransomware attack” occurred on the momentous 4^th July holiday weekend in the US. The hackers have demanded $70 million in bitcoin to restore the companies’ data after hitting Kaseya, a major US-based IT software provider.

Kaseya told all of its 40,000 customers to disconnect their software immediately but over a thousand had already been hit, making that attack one of the biggest in history.

This has brought about a “trust issue” with regards to Cryptocurrencies and Elon Musk has somehow contributed to bitcoin’s volatility, once saying that TESLA was suspending bitcoin payments for the famous electric cars. However, he tweeted – just a few days back – that TESLA would be willing to reconsider its decision if clean energy were to be used in the mining process of the cryptocurrency.

Cryptocurrency is fast, easy, unregulated and mostly anonymous, which is why this payment method is closely connected to the rise in ransomware attacks.

Clearly, the Crypto community should open the discussion with governments/central banks as to how to regulate Cryptocurrencies for the benefit of one and all.

It is worth noting that over 80% of the world’s Central Banks are already contemplating “regulated” digital currencies (CBDC) . The tiny Marshall Islands has made real progress in its CBDC project whereas in Mauritius the Digital Rupee has just been announced in the last Budget.

Is it the beginning of the end for Cryptocurrencies?