In some countries, regulators have taken a hands-off approach, allowing the cryptocurrency market to develop freely. In other countries, regulators have imposed restrictions, such as bans on trading or initial coin offerings (ICOs).
The regulatory environment can impact the future of cryptocurrency in several ways, including:
Influencing investor confidence: Regulatory clarity and stability can help to increase investor confidence, which can lead to increased adoption and investment in cryptocurrency.
With regulation, people will have confidence on the launched new projects since if the project goes rogue, people behind the project are known and can be sued of fraud, and authority can go after these perpetrators.
Shaping technological development: Regulations can also shape the direction of technological development, such as requiring increased security measures or privacy protections.
The technology will develop without regulation, since most of the project are competing against each other, it is normal that one will introduce an advance tech than the other one. By having an advance tech to offer, a project can get more investors.
Limiting market growth: Restrictive regulations can limit market growth by discouraging innovation or limiting access to investment opportunities.
It's important to keep in mind that the regulatory environment for cryptocurrency is constantly evolving, and new developments can have a significant impact on the future of the market.
That is centralized authority for us, they have the say on everything. If they wanted the tech to advance, they will demand it. If they wanted the tech to lay low, they will apprehend anyone breaking that rule.