Implement Modalities for Self-Regulation in the Cryptocurrency SpaceOctober 13, 2019
The cryptocurrency was purposed for transferring money across the world without incurring a hefty fee. The short-term direction for the cryptocurrency is not clear now. There is a lot of struggle to determine the direction of the Bitcoin in the current scenario.
Ethereum had modest losses; however, Ripple continues to stay on track by registering weekly gains. Several cryptocurrencies were fluctuating between technical ranges.
Crypto analysts have to suggest that Bitcoin will find a bottom, and it will begin to grow from there. The price of the Bitcoin has settled in the $8,000 to $8,600 range. This, according to several analysts in a compressed fractal, and is indicative of Bitcoin reaching out to the new bottom.
A comparison made to the November 2018 fractal had Bitcoin fall from $6,000 to $3,000. After this move, the price was ranging sideways, leading to explosive growth. While some think that the current scenario is similar to the compressed fractal of #BTC 2018. Yet another analyst opines that this time it will be different.
A year ago, the market was trending sideways for quite a long time; however, this time, it will not be the same. A similar action with lesser duration is expected.
The topic of self-regulation continues to trend in the market. To achieve a significant degree of standardization, regulation through self-regulated organizations (SRO) is required. Local regulators impose a lot of pressure on the concerned organizations across different jurisdictions.
Several governmental organizations, like the Financial Action Task Force, have projected crypto regulation as a significant aspect of their regulatory approaches. Several innovators opine that these regulations might impact innovation. In cases of countries that imposed harsher laws, there will be capital flight from the concerned nation. There will be a brain drain from nations that adopt these stringent measures.
Several critics opine that there will not be longstanding weightage for regulatory triggers from self-regulated organizations (SRO). There might be a risk of a lot of guessing legality in the process.
There had been no stable and definite ruling concerning the ban of cryptocurrencies before 2017. However, after 2018, there are strict regulatory norms published by the government.
Ever since, significant countries from across the world have joined together with the Asian countries to pioneer self-regulation for the industry. A lot of stress has been placed on the importance of having to implement modalities for self-regulation.
Iqbal V. Gandham, chair of CryptoUK, stated, “The crypto asset industry is still relatively new, with advances in technology and industry collaboration already creating solutions for many of the initial concerns surrounding the asset class, such as protection of consumer assets through cold storage.”