It’s a known fact that the cryptocurrency sector and the blockchain sector have their fair share of issues. In fact, just last week, a team of researchers in Germany discovered that child pornography was being stored in Bitcoin’s blockchain. It can’t get much more controversial than that, can it?
That worst of it aside, the more common problem mentioned is that there is not enough regulation. This is a problem that has been addressed by many, however, the latest to take action is Ireland’s Department of Finance.
Ireland’s Department of Finance and Blockchain
On Friday, Ireland’s Department of Finance released a report, titled “Virtual Currencies And Blockchain Technology.” The report is roughly 31 pages and it discusses a number of subjects, such as providing researchers with an introduction to the cryptocurrency and blockchain sector, as well as providing an “overview of the global virtual currencies market.” However, the most notable section of the report is when Ireland’s Department of Finance discusses their plans to create a blockchain working group.
Ireland’s Potential Blockchain Working Group
What would the point of the blockchain working group be? Well, according to Ireland’s Department of Finance, the blockchain working group would help to create a cohesive regulation across government agencies. Essentially, the blockchain working group would bring forward a coordinated approach to the various rules centered around virtual currencies. Further, the blockchain working group would monitor developments in blockchain technology.
Additionally, the Department of Finance’s report on cryptocurrencies and blockchain mention that the blockchain working group would address various issues and considerations that have been brought up by “consumers, industries, the EU, and governments worldwide.”
As mentioned, cryptocurrencies have a number of problems attached to them. The most common is the following: A) not enough regulation, and B) they are susceptible to criminal activity, such as money-laundering. In the report, Ireland’s Department of Finance mentions that the public should remain vigilant when it comes to cryptocurrencies criminal activity and volatility, but they also emphasized an optimistic outlook as well.
How? Well, the authors wrote that even though “criminality associated with virtual currencies represent a risk to governments,” there is still proof that indicates that “the majority of virtual currencies are purchased by investors” as well as “legitimate owners.”