One main reason for bitcoin’s popularity is the credence that they are not regulated by any central banking authority. The price of bitcoins has been very volatile and the swings in the price have been enormous. This has generated a lot of concern and interest in the cryptocurrency and a decision taken to update the rules and regulations foremost to the software.
Governments have been contemplating creating a framework for regulating bitcoins but such efforts do take some time for seamless implementation. It is important that one must understand how it works before any concrete steps are taken to regulate it. Bitcoin is a decentralized payment system and functions without being controlled by the government or a central banking authority.
is being hindered because they still are unable to define what it is. While some take it as a commodity, in some countries it is treated as money and used to procure products and services. To have a centralized regulation is difficult as it varies from one country to another. It is only when proper focus is paid on security, price stabilization and a decision taken if bitcoin is to be treated as currency or commodity will it be possible for a consensus to be arrived and modify the existing regulations.