Opinions

Demand for Crypto Regulation Spikes Amidst a Multitude of Mixed Opinions

Opinion is divided, and the jury is still out on the much debated matter of introduction of regulatory measures in the crypto world, as cries for governments to monitor and accredit digital currencies with legitimacy increase by the passing day. According to Daniel Santos, an ex banker at Standard Chartered ltd., the clouds of doubt and mistrust that shroud the crypto world can be done away with, with the advent of regulation.

”The most powerful force to reverse such negative sentiment would be market regulation,” enthused Santos, whose digital security rating company starts operations soon. “If the crypto market is ever to establish itself as a credible alternative asset class, it will need a set of rules that will weed out fraudulent activity and encourage stable growth, which should attract the deep pockets of institutional investors.” His firm, DARA, looks to assist reluctant investors with making right and informed decisions regarding the assets on offer, by rating and classifying said digital assets in terms of reliability, risk, and compliance with the set standards.

UK based Coinfloor’s Obi Nwosuis, another major crypto stakeholder who is a proponent of regulation, and has been in pursuit of getting UK’S FCA to regulate his bitcoin exchange for about 15 years now. He is of the opinion that the introduction of ”institutional players” onto the crypto scene would bring about an air of reliability and trust for hesitant potential investors and an increase in transaction volume. He also mentioned that the he is buoyed by the recent statements made by the UK government, possibly citing Phillip Hammond, the Chancellor of the Exchequer, who stated that his vision includes undertaking the process of the UK taking a driving seat in a global effort to bring about regulatory measures in the world of digital currencies.

Kyle Asman, from the digital asset consultancy company BX3 capital put an interesting spin on the situation and said that the fact that there is a considerable amount of chatter in the favor of regulation being brought to the crypto world, an industry which once prided itself on anonymity and independence, sheds light on the “immature” nature of the market. He also mentioned that people that may be interested in investing have insufficient evidence for believing that the crypto market cannot be tampered with. Michael Novogratz, formerly of the investment firm Fortress Investment Group, while talking to Bloomberg TV, recently stated his opinion that now is the ideal time to reverse the digital asset price plunge around, and funneling big institutional money into the industry could prove to be a revelation in that regard.

Another proponent of monitoring measures is Eoin O’Shea, an ex officer at Credit Suisse, who is of the opinion that a market which believes that it has a very unique selling proposition must position itself in such a way that it can take advantage, financial and otherwise, from regulations and the way they would be implemented. Ryan Zagone of Ripple Labs, believes that even though regulatory steps would be some sort of a direct turn from the initial purpose of digital coins, the anonymity and evasion from governmental monitoring is somewhat impractical. He also says that the fact that the discussion pertaining to regulation and government involvement has come to this far a point is a proof of how far this industry has come, and matured, however.

There is, however, a sizable set of digital asset enthusiasts that believe that regulations are the last thing that the market needs and it goes against the very essence of the principles upon which the edifice of the crypto world was built and grown. They believe that giving in to such measures would be playing straight into the hands of the financial and commercial establishment, which aims to have a controlling hand over all transactions to the fullest extent.
However, globally, the wind of regulation on the digital currency front is gaining strength. Asian countries, especially the regulatory machinery in Hong Kong has expressed its openness to trying various methods to monitor crypto. The “coins” have been embraced and met with positive response by the Japanese, and although authorities in Singapore still refuse to facilitate the influx of more new currencies, they are now ready to help crypto firms to acquire banking rights and accounts. Those who are for regulation are sure that the industry has to leave its image of a lawless, uncontrolled, and trickily confusing myriad behind in order to gain widespread interest, and an increased level of efficiency, growth, stability, and productivity.

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Nusrat Ullah Roomi

Nusrat is a management student with a keen eye on the world of blockchain, digital currencies, music and sport from a marketer's perspective. Nusrat brings insights of business applications to report news around the blockchain space. Email: nusrat@blockpublisher.com or contact the editor at editor.opinions@blockpublisher.com

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