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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