The fight for decentralization seems to be coming to a screeching halt. As new investors pour into the market, so does the outcry for government protection through intervention. The recognition of cryptocurrency has grown in the recent months and government intervention is now in full effect. But, how will this affect the market and the future of cryptocurrency? Let me provide you with facts and examples of government regulation that is currently being implicated and then let you be the judge.
Following the SEC (Securities and Exchange Commission) and CFTC (Commodities and Futures Trading Commission) senate hearing held on February 6, 2018, the cryptocurrency market has finally found some stability (referring to the huge sell off which occurred prior to this hearing). SEC Chairman Jay Clayton and CFTC Chairman Christopher Giancarlo provided a testimony that left the public feeling "optimistic"about the future of crypto. They explained what could be regulated, what should be regulated, and how. Questions of regulation covered the value of cryptocurrency (with evidence of mining and how it correlates with price), unregulated exchange platforms and the public's misconception, ICO's as a Security (enforcement and intervention by the SEC), and how a coordinated effort to regulate is needed. The two Chairmen differentiated between a "true cryptocurrency" which is mined and produced by the public apart from ICO coins which are "securities". For more info, please refer to the source links provided at the end of this article.
I know this probably isn't the time, but, for U.S. investors I highly recommend looking into my other blog regarding the ICO Safe Haven. On their team is U.S. Securities Counselor Destiny Aigbe, which in my opinion, makes this possibly one of the ONLY ICO's that will be approved by the SEC. So, if you are looking to invest this is an option.
I am not a financial advisor and I am not being compensated for the mention of this ICO. As usual, Do Your Own Research.
Now, onto other regulatory efforts. China has decided to completely end all efforts of the cryptocurrency movement by releasing its giant firewall. This firewall prevents any and all access to any website associated with cryptocurrency and this even includes any news coverage. For now, let's officially count China out of the market.
India is next on the list. India's Minister of Finance, Arun Jaitley, expressed the outlook of cryptocurrency in this stcatement:
"The government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system."
Regulation will continue to be a topic in the months to come. French and German officials plan on discussing the matter further during the G20 summit set for next month.
This is another obstacle for cryptocurrency and the fact that the U.S. has not officially rejected it should provide some sense of relief and give hope that other countries will try to adopt a similar view. As always, thank you for your time in reading this and please do not forget to DYOR (Do Your Own Research). Please leave your comments below. I would be honored to have the opportunity to have open debate as well as hear your viewpoints on the matter.
---Ledger
SEC/CFTC Hearing- https://techcrunch.com/2018/02/06/virtual-currencies-oversight-hearing-sec-cftc-bitcoin/
Cryptocurrency Regulation- https://seekingalpha.com/article/4145444-cryptocurrency-regulation-boosts-markets
World Leaders on Regulation- https://www.express.co.uk/finance/city/917017/bitcoin-news-latest-regulation-g20-meeting-cryptocurrency-south-korea-india-japan-france
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