The accountability of cryptocurrencies as a legal instrument has been observed to vary from country to country; where on one hand some are mapping out the laws and measures, others are yet to release a statement regarding this deranged evolution.

For those who haven’t been a part of this buzz, Cryptocurrency is a digital currency created and stored electronically. Unlike monetary currency, the supply of cryptocurrency is not determined by any central bank or authority and the network is completely decentralised. The decentralised control of each cryptocurrency works through a blockchain, which is a public transaction database functioning as a distributed ledger.

Sounds too heavy on the tech? Well, it’s heavier with the debates going around it. Extensively claimed as deranging havoc, cryptocurrencies have gained prominent adhesion over the last half a decade, at the same time fabricating an administrative incubus across the globe. creating a regulatory nightmare for banking regulators across the globe. At present, there are around 969 cryptocurrencies in existence globally, with a total market capitalization close to 116 billion US$.

The hype around this monetary evolution has thrown light on its multiple merits such as hassle-free transfer of funds between two parties without a third party like banks, credit/debit cards, etc., its wide-ranged affordability in comparison to other online transactions and many more.

But Despite these numerous boons, cryptocurrencies come with their terrorizing shortcomings in the form of the fickleness of evaluation, lack of liquidity, etc. Moreover, they are being condemned in many countries because of their use in grey and black markets as it comes with their associated risks. They also have the potential use for indicted Trade and Criminal  Activities and can be used for Terror Financing. Needless to say, They may also be capable of displacing the existing financial systems which enable the electronic flow of money across different political boundaries.

However, this is just a brief insight about the pros and cons of this latest hype, weighed unbiasedly. To make any investment decisions it's immensely essential to conduct thorough research of the various available opportunities as well as evaluate the market deeply to avoid any misfirings. 

The triumph or collapse of cryptocurrencies depends upon the way regulatory frameworks are devised. Different countries have approached this upheaval in different ways, and therefore the managerial environment remains pending. The government will have to take considered steps, given the risks from the possible use of cryptocurrencies in terror financing, money laundering and tax evasion.


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