Cryptocurrency is a promising asset class for investors. But lack of proper regulations slowing down its development. Cryptocurrency is increasingly becoming mainstream. Moreover, Crypto has become a genuine, unignorable market.
There are three plans to regulate crypto. The first plan is not to restrict it as much. Crypto has incredible growth. Thus, the market and regulators may find the path difficult.
The second path is to regulate the industry without deep engagement. You can take consultation from good faith companies in the crypto space. But this way may need to sacrifice powerful financial innovation that miners could be harness for good.
The third method has a suitable value option. Here the regulation involves an ongoing partnership with the industry itself. Many people of the industry already see this as an innovative regulation. Moreover, this is something that will help to advance the industry.
Bitcoin regulation in historical context
Bitcoin was born a decade ago. It was a peaceful protest against the expansive monetary policy of the great financial crisis of 2008. Bitcoin is growing rapidly as an asset class with market capitalization peaks. Hence several country’s lawmakers are trying to regulate it.
But we cannot expect crypto to go on in an unsupervised like its early years. We all know that mainstream asset classes cannot go unnoticed.
