Cryptocurrencies were designed to be ‘trustless’ currencies as the economy was in turmoil, and people were looking for an alternate source of investing and exchange mechanisms. However, more than a decade later, the question remains, how many of us have actually placed our trust in the functioning of cryptocurrencies. Comprehensive regulations certainly help in expanding the scope of cryptocurrencies. However, regulations are only to curb any illegal access to crypto assets. They do not necessarily create a crypto economy friendly environment for users, which is done through how crypto is perceived.
Statistics source: Edelman
The above figure provides a clear indication of how even when comprehensive laws are in place, cryptocurrencies are not favoured instruments. In countries such as Australia, the United Kingdom, Japan, and Singapore, there exist laws that have identified tokens and crypto-assets as a manner of security or property and allow trading of cryptocurrencies. However, even then, the people have not proved to be the best consumers of cryptocurrencies in these jurisdictions. In India, where there exist an uncertainty and a potential ban on cryptocurrencies, people have favoured its cause. In UAE, where the economy is highly dependent on foreign investors and institutions, crypto has been widely adopted and new standards for digital assets have been coming up. In China, consumers have favoured it the most, even when the Chinese officials had shown initial negative attributes towards crypto assets. This shows how merely implementing laws and regulations to curb illegality may not deplete or increase the cause of cryptocurrencies, it is the sentiment towards them that need to be identified and explored.
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