New and stricter regulations have been springing up all over the world as it relates to cryptocurrency.
These new regulations often cause a wave of selling as exchanges are forced to comply by these new rules, or move somewhere else.
The selling is ugly and often forced.
Happening at times when the markets are already weak.
However, in the long run these rules and regulations will be what is needed to bring in more investors.
Endure the pain now, for the gain later.
No pain, no gain?
Japan has been a prime example of this.
Back in April of 2017, Japan announced that bitcoin would be legal tender. I believe it was announced on April 1st as I remember some were questioning whether this was an April Fools joke or not.
That was really the start of the most recent major crypto surge.
However, since that time, Japan has been forced to reign in things quite a bit.
Japan was once a region that seemed to open its arms to any and all blockchain and cryptocurrency related business but lately has been pulling back on the reigns.
I guess being responsible for 2 of the largest crypto exchange hacks ever will do that to you.
If you are not familiar, Mt. Gox and then Coincheck are the two I am referencing.
The recent moves by the Japanese government has been to finally reign in the exchanges that have been operating mostly without restrictions.
This is responsible for some of weakness we are seeing of late.
(Source: https://news.bitcoin.com/japanese-crypto-exchanges-self-regulation-coincheck-hack/)
However, it's not all bad...
As these new regulations get implemented and exchanges get cleaned up, we will ultimately have a much better investing arena.
Where fraud and manipulation once ran rampant we may soon have a legitimate playing field for institutional money to enter.
While it is painful in the short term as the exchanges get cleaned up, the resulting infrastructure will be more inviting to the institutions.
It's a trade off of sorts.
The wild west days will slowly slip away, but infrastructure will be built for the industrial revolution to soon follow right on its heels.
(See what I did there?)
Stay informed my friends.
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It would be good,but there is no way that someone can regulate crypto.
"CypherPunks Hate This One Trick!!"
It goes against what they stand for.
Regulations somewhat oppose to cryptos I guess in my own point of view. Cryptos in a sense is automation without the need of manpower as its end goal. Maybe this is the reason why cryptos and particularly bitcoin is so volatile.
On @keiserreport Max continuously reiterates your point b/c people don't seem to get it, and I have to agree: Bitcoin is self-regulating. In my opinion that does not mean there shouldn't be or is no need for regulation in the crypto space. I think it could be a two way street, regulations in opposition, like a separation of powers.
I guess in the future automation will prevail. Software and any other computer programs will eventually be the regulation itself. Robots/machines will replace humans.
I hope not.
Hope and pray.
I agree. Regulation is basically a great thing for crypto market.
Think, for example, to fiscal taxation of crypto profits in the US. When it was announced, crypto market had some moments of panic.
But, for a speculative fund who wants to invest in crypto market, having a clear fiscal context is essentialfor profits calculation.
An unclear fiscal context means that after trading the fund manager is thinking: "well, i've got X money from crypto market. Now.. Well, now we have to wait for the government and hope for the best". This is madness.
I study economy and financial markets at university and this level of uncertain is unacceptable for traditional standards.
Regulation is needed.
Also, for example, by themselves crypto exchanges dosn't guarantee the security standards that institutional investors need of for investing in crypto market. In facts, many exchanges are buying traditional market operator to improve their skills and technical resources. Regulation can force exchange to work on this and allow great infestors to feel more confortable.
So yes, you are right. Regulation is a great thing. Long life to regulation!
Good comment. Yes the tax issues are also causing issues. We need more clarity on those as well.
Heavy handed regulation = bad
lightweight sensible regulation = good
Crypto trades do not ensure the security gauges that institutional speculators need of for putting resources into crypto advertise.
Direction can drive trade to chip away at this and permit incredible infestors to feel more comfortable.
The biggest thing is that with regulations credibility will come. Big investment firms can not afford to lose the money of their clients due to hacks or legal issues. Regulation will almost only be bad for criminals who want to launder money. Yes I agree that the initial idea of crypto is being lost but with great power comes great responsebility. It is something that we will all have to live with and that gives crypto the strenght need to become mainstream.
Agreed, and it may force some of the exchanges to sell off some of their holdings in order to meet certain requirements, which also creates weakness in the short term.
I understand that this restructuring is for the good of the cryptomonedas, but my main concern is time. I understand that every harvest takes a long time to bear fruit, but there are external factors that come into play (governments and their bad decisions) that can lengthen the wait and even hinder the progress that has been made! It's our turn to wait. Thank you for sharing!
Good news for the cryptomonedas! The more legal the transactions are, the more opportunities we have to invest. I already saw that Facebook has accepted again the announcements of the cryptomonedas, that is already a sign of new and good changes. Let's go slowly but surely. Thank you for the information.
I agree. It was good to see them reverse their stance on crypto ads.
I agree. It was
Good to see them reverse their
Stance on crypto ads.
- jrcornel
I'm a bot. I detect haiku.
Very nice bitcoin crypto sir.
Your post @upvote and @resteemit done sir.
Coming from a regulator (energy regulator :)) .... Regulation usualy brings more security in the buisness for the companies and investors, allowing them reasonable rate of return. But also means no more crazy profits :)
Which big investor will come on where nothing is known?
At the moment, I can not even agree on how to classify crypto currencies (they are securities or something else).
Taxes?
Transaction Size Control (Amount Without Special Check)?
There is more ...
The introduction of strict regulations is the only solution for the entry of large capital.
Less scammers is obviously better for the crypto economy in anyway.
Gracias por este post, su contenido fue de gran ayuda para conocer mas sobre las nuevas regulaciones a las criptomonedas .
Have you guys heard about Seele? I've written an article on how Seele is repositioning blockchain technology for mainstream adoption here https://steemit.com/airhawk-project/@foley/seele-repositioning-blockchain-technology-for-mainstream-adoption
@jcornel
According to me regulations in this field is the only way out for any country or government. No one can stop it's residents from being a part of this field as there are so many hidden ways.
Now or in future regulations have to come.
@jrcornel here also indian government may come with crypto regulation draft in July18 , that will have safe, relax free trading environment in india .