Cryptocurrency regulation is a debatable topic, but experts world over says crypto investors should welcome it.
The U.S has proposed regulations that would require cryptocurrency exchanges like Coinbase where the data will be collected about the investors and people who transact crypto from any transaction above $3,000. Many experts like Brian Armstrong have openly criticized this considering this violates privacy laws.
Coinbase CEO Brian Armstrong, one of the most powerful voices in the world of crypto, has projected the future of crypto will look like the U.S. Securities and Exchange Commission (SEC) is running for more power and such a move may or may not work once it’s finally laid down.
Armstrong, while speaking with Altcoin Daily on the major issue has recently predicted the
“crypto industry will likely not be regulated solely by the SEC because not all digital assets should be considered securities”.
Mere Speculation or it’s happening?
Armstrong also insisted on certain points which need to be addressed while dealing with Crypto here is what he said in his interview:
Being in the industry for more than a decade he feels that crypto is the future of all financial systems. While he also assumes that in another 20 years it will be a substantial part of global GDP which will give more freedom to investors.
One thing that is pretty much clear in the crypto market is that the entire system is volatile and there is always market risk behind it like any other financial asset. So this get-Rich and short-term thinking may drop the investors in trouble of losing money. It’s also unhealthy practice to get involved in for all the wrong reasons and it’s certainly not good for the entire industry to sustain.
That’s where the regulations come in to protect the rights and to keep an eye on such predators. Earlier these consumers weren’t protected and an appropriate disclosure was necessary for example well-informed choices like dollar cost average in with a small amount of your net worth and hold for the long term and how to do it’s not really about the speculation too it’s about how do the consumers use this stuff for more and more parts of the economy.
If the industry is getting more and more people using crypto then everything else around it will make sense. Also, it won’t be speculation anymore and it’s finally happening.
What’s troubling the crypto industry?
One thing which annoys Brian is the herd mentality of people who think the crypto market is easy to get rich. This is where people lose out on their hard-earned money and it bothers the regulators too. That’s when the regulations come into the picture and a long time discussion regarding the US regulations law is going to happen soon.
The number one way that the government could regulate cryptocurrencies is by taxing any negotiable instrument you use to cash out a virtual token. However, the new-laid down regulations may have the potential to protect long-term investors, prevent fraudulent activity within the crypto ecosystem, and provide clear guidance to allow companies to innovate in the crypto economy as per the experts.