• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news

Will Regulation Weigh on Cryptocurrencies?

Guest Author by Guest Author
3 years ago
in Cryptocurrency news, Bitcoin
Reading Time: 3min read
Regulation
Advertisement

Cryptocurrencies have seen some significant, broad-based selling pressure in recent weeks that could be attributed to several factors. Without a doubt, the notion of increasing regulation has played a role in the recent downside, and ongoing changes in the regulatory environment could continue to fuel market volatility.

South Korea has already taken some significant steps to regulate trading in Bitcoin and other cryptocurrencies, as new rules are set to take effect this week. The South Korean Financial Services Commission will, as of January 30th, require that any trade in cryptocurrencies take place from a real-name bank account. Previously, many exchanges had required only an email address to trade cryptocurrencies. Although the previous level of anonymity may have been attractive for some, it also presents some significant problems.

The real-name rule is a significant step in the fight against money laundering and other potentially illegal activities. It will allow banks to enforce their KYC (know your customer) and AML (anti-money laundering) guidelines and may make it increasingly difficult for such networks to be used for fraudulent activities.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Russia is another nation looking to regulate the crypto space, and it recently drafted a law that looks to control both the production and creation of virtual money. The law, which has not yet made it through parliament, will provide a definition of digital technologies used in finance. At the core of some of the questions surrounding cryptocurrency is whether or not it qualifies as money. The latest Russian bill would legalize the term “digital financial asset,” which would be considered a security in electronic form.

The U.S. is also trying to tackle the surging popularity of cryptocurrencies, with the IRS previously having issued guidance classifying cryptocurrencies as “property”, allowing investors to utilize self-directed cryptocurrency IRAs. According to some recent headlines, the U.S. seems particularly interested right now in the ICO (initial coin offering) market. Former SEC Chairman Harvey Pitt is already on record, stating that “We’re in line for some serious regulatory responses to all of this and that will be forthcoming after the first of the year.”

The war on some ICOs appears to have begun. The SEC this week filed suit against cryptocurrency banking company Arisebank, according to public documents. The company is being charged with fraud and issuance of unregistered securities. The company has defended its model, however, and has suggested that its products can be bought and sold without SEC oversight.

Governments are clearly trying to get a handle on the cryptocurrency craze, and more regulatory action will likely be seen around the globe. Further regulatory oversight is not, however, a bad thing.

Simple customer protections, such as real-name requirements and documentation, can have a significant effect on the fight against money laundering, tax evasion, and other criminal activity. Other customer protections, such as proper risk disclosures regarding cryptocurrency investments, or capital standards for exchanges, will only serve to provide the cryptocurrency market with additional legitimacy.

Consider this: Cryptocurrencies will be competing against credit card companies, banks, and other financial institutions for market-share in the global payments space. All of these sectors (credit, banking, and finance) are highly regulated, so it stands to reason that cryptocurrencies should be as well.

In fact, additional regulatory guidelines may make cryptos more attractive not only for investors but for retailers and merchants as well. Consumers who have never participated in these networks may feel more comfortable in doing so, and cryptos could potentially see a large number of fresh capital inflows.

Despite their decentralized nature and global presence, it is difficult to imagine a scenario in which cryptos become far more mainstream without having some type of regulatory framework in place.

This regulatory framework should be viewed as a good thing, however, as well as a necessity for cryptocurrencies to reach their utmost potential. Might it cause a few bumps in the road? Probably. Staying on top of the latest developments in cryptocurrency regulation is not a difficult thing, however.

The cryptocurrency markets have taken the world by storm, and regulators are looking to catch up. These forms of money must have some type of regulation in order to prevent illegal activity and illegitimate use. Such regulation should not only not be feared, but it should be welcomed.

A regulatory framework that makes sense, protecting investors and network users while curbing illegal use, is a logical next step for these currencies as they seek to become a preferred global payment method.

Tags: regulation
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Guest Author

Guest Author

Related Posts

bitcoin and Ethereum macro beating

Economist: Ethereum and Bitcoin Look “Bullish” After Withstanding “Macro Beating”

6 hours ago
paradox

How Paradox Group Is Helping DeFi

15 hours ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Bearish Correction Pauses: Focus Remains on Dollar and Yields

19 hours ago
Cardano, ADABTC, ADAUSD, ADA, cryptocurrency

Cardano (ADA) Death Cross Spells Worries Despite Bullish “Mary” Fork

20 hours ago
oddz

Leading on-Chain Option Trading Protocol Oddz Finance Announces Its Public Distribution IDO on Polkastarter

21 hours ago
Metis, DAO

Decentralized Companies Are the New Norm and It’s the DAO Revolution That’s Making It Possible

22 hours ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

EcoCelium is Now Live – Ready to Mark the Next Step in DeFi

March 5, 2021

MXC Exchange Commits to Integrating USDC-SPL on Solana

March 5, 2021

Gambling Exhibition Ukrainian Gaming Week 2021: A Range of Products From Exhibiting Companies, an up-to-Date Program and a Special Offer

March 5, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Buy Silver

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.