Why does cryptocurrency attract the attention of government regulators?

Cryptocurrency continues to be in the spotlight of both investors and government authorities. The main reason is its potential impact on financial systems and the economies of countries. The rapid spread of digital assets, as well as their anonymity and decentralized nature, pose threats to traditional financial institutions. Regulators are concerned about the possibility of cryptocurrencies being used for illegal activities, tax evasion, and money laundering. Furthermore, the significant volatility of cryptocurrency prices represents a risk to the stability of economies. In response to these challenges, many countries are developing new regulations, attempting to balance innovation and security in financial markets.