How can the risks imposed by cryptocurrencies be mitigated and managed?explain

Blockchain
#1

Regulation can solve for this concern. Across the world, regulators (including in the US, Singapore, Japan, Dubai and UK) have evolved regulation to solve for this issue. Licensed intermediaries (crypto-exchanges) can help the regulator maintain oversight and control over cryptocurrency transactions through mandatory requirements such as extensive know-your-customer or KYC checks on traders, taking anti-money laundering measures and maintaining transaction records. This is how existing financial institutions such as banks and stock exchanges keep track of financial transactions and verify customer identity. A dashboard can be made accessible to all relevant authorities to provide real-time trading data in relation to all exchange users in India; and trade of cryptocurrencies can be restricted to only those users whose addresses have been whitelisted by licensed exchanges in India. These features can provide substantial controls to the regulator to monitor flows of cryptocurrencies and restrict them to verified/legitimate users. We also propose adoption of Aadhar-based e-KYC, mandatory capitalization requirements, creation of a central repository with details of blacklisted users and formation of an investor protection and education fund.