By April 2021, there was an increase in the cases of ransomware attacks by 45%. But some are not bothered because they believe these attacks are associated with the unusual growth. Despite this uncertainty around the crypto space, individuals demand regulations.
The Major Cause of this Movement
Having a good understanding of the cause of the movement from the regulators is pertinent. Some industry experts were contacted, and their views hold that data may reveal a lot beyond human scope or imagination.
Data reveals that ransomware attacks happening globally are more frequent than before. And that may own to the COVID-19 pandemic that got employees to work from home. Kadan Stadelmann—CTO of Komodo—reveals that Palo Alto Networks made a $570,000 ransom payment last month. He mentioned how this ransom is 82% higher than the one paid in 2020.
He argued that the blockchain industry needs effective regulatory policies and enhanced cybersecurity in the next ten years. As a result, this will create a safe space for users and reduce the rates of cyber-attacks across this country. He also argued that the government should have an allocated fund while putting those measures in place.
The policy should ensure that companies with crucial infrastructure have adoption policies to help mitigate such events. As a result, such a company is prepared ahead, and they have both cybersecurity proactive and reactive measures. These two measures will reduce the rate of ransomware attacks.
Meanwhile, Du Jun—co-founder of Huobi—shared the same view. He associated the prevention of Anti-Money Laundering (AML) with the government’s responsibility. He is convinced that the government should be accountable for establishing Combating the Financing of Terrorism within their countries. However, the U.S. government should have regulatory endeavors to keep the crypto market steady.
He opined that the government should have extra resources that will allow new businesses to grow within this space. As a result, the country will be competitive on crypto adoption and encourage crypto enthusiasts to keep their interests high.
Ransom Justifying the Call
The amount of money spent as ransom due to cyberattacks is about $350,000,000 crypto worth. And there is optimism that this number will increase by the year. As such, it is crucial to follow Warren’s rule of disclosing ransom payment. This rule states that you should reveal any ransom payments not later than 48 hours after payment.
Although the significant problem individuals are having resulted from Biden’s government asserted pressure on the crypto industry. This is a combination of infrastructure bills and other sanctions in place. This became one of the reasons people are cautious with their crypto activities because the government can make any move at any time.
From all indications, the U.S. government is not planning to ban cryptos like China and other countries. Instead, they are constantly creating a portal to incorporate digital assets into the traditional financial system. The AML policy will stop illegal crypto activities and give crypto a new developmental shape.
Are Enhanced Regulations a Win for All Parties?
While the U.S. regulatory efforts seem to be making rounds on the mainstream media, there is a global initiation for crypto regulations. They believe this will clear ambiguity in the crypto industry and provide easy passage for investors willing to join this fast-growing technology.
Aside from making crypto participation an easy task, regulations will provide users with various retail products with the crypto association. Next is an argument about accepting regulations that seek to eliminate any crime without excluding the crypto industry. This will also help crypto establish itself and grow with time.
Although users may think such regulations impact the market, the regulations are essential to protect consumers while not sending innovation away. It is a good thing since digital assets trading will continue, but the government will recognize criminal activities and eliminate them.
How Ransomware Will Play Out in the Future
The crypto industry will keep evolving and growing. It is essential to get a hold of ransomware attacks taking place on a platform or network. That’s because the government will be able to recognize criminals that commit crimes via crypto.
This makes it easy for hackers to know the original identity of the parties involved in a transaction. This is revealed because every transaction is recorded on a blockchain network, and all transactions exist there, and maintenance happens right on the web.
While regulators are making decisive endeavors towards ransomware-related issues in the crypto space, some individuals do not believe in that narrative. They think that more critical efforts can be made to the digital asset ecosystem to prevent various cyber-attacks.
Meanwhile, a large percentage believe that there is no accommodation for ransomware initiatives. But are convinced that effective regulations will ring more prosperity to the industry, and there will be another massive adoption.