While there have been a lot of scammy approaches in the cryptocurrency world, the potential of this technology cannot be ignored because the wrong people used the right technique in the wrong way.
Rather than banning cryptocurrencies, governments and regulators are exploring the possibilities of coming up with cryptocurrencies that are sponsored by the state.
There is a lot of controversy revolving around identifying the legality of the virtual currency. There are some countries where the crypto is banned, and traders face the problems of imprisonment for accepting crypto, while there are other countries where they are free to use crypto. Some states permit selective transactions with crypto through regulated exchanges.
Financial institutions like banks are prevented from providing bank accounts for institutions and individuals using them for crypto transactions. These institutions are recommended to report the transactions to respective authorities if they occur.
Virtual currencies are banned as a legal tender. Unlawful selling of tokens, fundraising, offering asset-backed securities without due registration from regulatory authorities are banned.
Those entities whether institutions or individuals participating in such transactions are to register and report their transactions to the regulatory bodies. They are to withdraw their offerings and financing if the regulatory bodies in their jurisdictions do not permit the same. Investigations and prosecutions for violations are initiated. So, regulators are cracking down in every aspect of the crypto world to safeguard investor interest.