Ask leo: could lack of legislation lead to the collapse of cryptocurrency?

Cryptocurrency operates on a blockchain technology which makes it free from external manipulation or control. This is one of the reasons why some investors invest in Cryptocurrency. However, this lack of legislation poses a larger risk and disadvantages to investors and a country's economy.

What is cryptocurrency legislation?

Cryptocurrency legislation is the enactment of laws and principles that governs or guides the operation of cryptocurrency. The following are the things that cryptocurrency legislation will control or eliminates ;

1. Money laundering; some people take the advantage of the independence of cryptocurrency and lack of legislation to commit fraudulent activities. It is easier for them to invest the money stolen into Cryptocurrency without been traced.
2. Insecurity and violent activities; lack of cryptocurrency legislation also helps terrorist , bandits and human traffickers to easily make transfer of funds for their heneious activities. Such as procuring weapons and banned harmful substances . This could pose danger to a country's security. The criminals cannot be easily tracked down because cryptocurrency investment doesn't require much personal data for registration unlike banks which collects detailed information especially the Bank Verification number (B.V.N) which is unique for everyone.
3. lack of protection for long-term investors; due to the high volatility rate of cryptocurrency, long term investors needs to be protected from the risk associated with cryptocurrency when the need arises.
   With cryptocurrency legislation, confidence would be built in people to invest in Cryptocurrency and country who hasn't embraced cryptocurrency will be willing to do so because they will be assured that it doesn't pose any danger to their security , financial and economy because it will help in tracking down anyone who has Laundered embezzled money, it will also seize the avenue of purchasing weapons to fund terrorists. If cryptocurrency legislation is still not allowed , it might collapse the existence of cryptocurrency because government of many countries will frown at it prohibits its transaction if they discovered it poses danger to them rather than benefits. Individuals too would be discouraged and withdraw their investment .

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