Bitcoin and other digital currencies may be well recognized across the world for its potential to change not only the monetary system but also the whole tech industry, but they do not command the same respect when it comes to regulatory aspects. The blockchain technology, on which most cryptocurrencies are created is being embraced by mainstream industries including banking and financial sector.
Even though the Banking and Financial sectors know exactly what bitcoin can do, they are apprehensive about the currency part. It is either due to lack of understanding of the digital currency or just the inferiority complex where they are threatened by the astronomical rise of bitcoin and bitcoin-based financial services.
Bitcoin regulations is still a grey area in most countries. The governments have not come up with specific regulations as the cryptocurrency industry is full of potential and is still in nascent stages. Unless the industry reaches a certain stage in terms of innovation, the government and regulatory bodies may unknowingly hamper its growth by introducing detrimental regulations.
In 2014, Central banks across the world simultaneously issued warning against the use of Bitcoin and other cryptocurrencies. The warning stated that these cryptocurrencies are not backed by any central bank and