The role of the government in financial regulation is to maintain the stability and integrity of the country’s capital markets. These are the bond market, the equity market and the foreign exchange market. Since the financial crash of 2008, government regulation has increased, especially in developed markets. Does technology make the government’s role more difficult? What about cryptocurrencies? Should they be regulated too?

Answer:

No, technology does not make the government's role more difficult, rather make easier for government to accomplish various tasks. There are lots of tasks which the government needs to carry out everyday to earn public trust and improving public interaction with government. Public today expect more transparent, accessible and responsive services from the public sector. It is the technology which helps both the government and private sector to improve the delivery of services. Technology reduces unnecessary tasks or complexities and streamline the processes. It is the outdated processes and technology that make the government's job more difficult. The effect of this on public can be manifold, getting required services take longer and face unnecessary problems. For example, getting a work done needs a continuous visit of many departments, but with the implementation of automated technology, public can easily get their work done and it is also easy for the government to maintain a healthy and easy interaction with the public. When there was no technology or less technology, government has to face lot of problems to carry out their important roles, but with the advancement of technology it becomes easier for the government to perform various roles within the stipulated period of time.

Yes, cryptocurrencies should be regulated. The fast-growing market of cryptocurrency creates illegal activities, such as money laundering and terrorism. There are people who don't know much about cryptocurrencies but invest in them to get more profits. At the end, they loose a lot of money in the hands of brokers or mediators. There are warnings from government that cryptocurrencies are associated with risk resulting from high volatility and the organizations that facilitate such transactions are unregulated and illegal also. In spite of that some people invest in cryptocurrencies at their own risk and regret being a looser. So, to save the innocent people and restrict the fraudulent activities, cryptocurrencies should be regulated.