Cryptocurrency Resilient Despite Regulatory DemandsOctober 3, 2018
The cryptocurrency industry should align themselves to the demands of the government regulations. The stock market operates under the strict regulations of the government. The lack of centralized authority over the transactions has led to piling up of scams and frauds. There is a growing interest among institutions to mine their institutional currency.
A substantial amount of resilience is required to sustain long-term growth despite the current bearish trend. An improvement in cryptocurrency liquidity is possible only with improved interest from retail investors.
Long way to go for the cryptocurrency. Despite the decline in the value of the significant cryptocurrencies and Altcoins, the cryptocurrency industry is set to grow because the industry has found significant outlets for its use. The industry is striving beyond the price volatility. The digital currency industry is beginning to shape the financial industry with the introduction of several liquid cryptocurrencies. It has as well laid its hands in the futures market. Despite the backlash of criticism, the cryptocurrency is agreeably one of the most important and influential decisions in the Fintech industry.
The government regulations are getting stringent. In the past, Jay Clayton stated that “SEC will not be bending the rules anytime soon.”
While initial coin offerings that were offered during the fundraising process were classified as securities, Bitcoin continued to be a commodity per their classification.
In his explanation to CBNC, he clearly stated that they are not going to bring in drastic changes to the definition of securities. The meaning of securities continues to be the same in their traditional sense. He as well stated that there was no need to change the description either. As a digital asset that goes off to make a venture that gives a return, then it becomes security. He stated that the offering of the security and the trading of the security would be regulated.
With regulators stepping forward, the experimentation and open approach will suffer a shortfall. The interest in institutional money is increasing and larger capital firms are quite interested in the concept of decentralization.
While the fight continues, “I’m pleased to announce that all UK customers now can buy and sell using GBP on Coinbase, Coinbase Pro and Coinbase Prime.”
Previously Zeeshan Feroz expressed that the cryptomarkets would soon mature up with the resemblance to the traditional investment market.
However, Peter Randall of SETL contradicted stating that cryptocurrency will never mirror Wall Street. The lack of liquidity he states does not contribute towards the element required for long-term growth.
Financial Times reported on how Chicago-based proprietary and futures trading continues to thrive despite the price volatility. Rob Sagurton of the firm stated that they were trading more liquid cryptocurrencies apart from having a hand in the futures market.
Cryptocurrency has already gained attention from the broader audience comprising of retail and institutional investors, and it is only going to better for the integrity of the blockchain technology.