A subject that bad been brought up over the years that hasn’t seemed to have gone away, are regulations good or bad for the Bitcoin (BTC) and the cryptocurrency industry?



Good or Bad?

Some advocates of crypto insist that regulations are good for the industry. Their reasoning being that regulation helps to pave the way for mainstream adoption or cryptos. Other people have a completely opposite view, warning that a legal framework of regulations will put cryptocurrencies at a disadvantage to fiat.

In the end, we can already see examples of both scenarios in the real world. In Switzerland they have been creating regulations allowing them to form a reputation of being a crypto-friendly country. The Swiss Financial Markets Supervisory Authority have given licenses to two institutions focused on providing banking services for crypto clients. This on its own is undoubtedly a major milestone.

The positive attitude in Switzerland for digital assets contributed to Facebook’s decision to base their not-for-profit Libra Association on the country. Reports indicate that the Switzerland’s top 50 blockchain companies value have more than doubled to a collective $41 billion during the first half of 2019.

On the other hand, countries such as The United States have been especially tough with in regards to crypto regulation. Halting the release of Libra for fear it could undermine the dollar or possibly even threaten the global economy.

So, what are the pros and cons of crypto regulation? Will it ever be possible for this fledgling industry to sit comfortably alongside traditional financial institutions? And given the fragmented landscape, with some countries embracing digital currencies and others shunning them, will this technology ever go global?

What are the pros and cons of regulation?

Known crypto advocates such as Apple co-founder Steve Wozniak, have warned peopl that most countries will want to keep as much control as possible. Mainly to preserve their own revenue streams. Others worry it could have huge ramifications for two of crypto’s unique selling points: transparency and anonymity. Then there’s the argument that Bitcoin and other cryptocurrencies are meant to be decentralized. Meaning fully separated from the financial infrastructure that caused a devastating recession back in 2007. Some fear that bringing crypto into this sphere would eliminate some of the freedoms that made cryptocurrency so appealing in the first place.

Not everyone agrees that regulation needs to be calamitous for blockchain and crypto. Again, referencing initial coin offerings, some argue that the introduction of stringent regulations has the opportunity to introduce some vital investor protections that those on the stock markets take for granted. Regulation could also deliver the much-needed seal of approval that has been holding many institutions from taking the plunge — injecting billions of dollars’ worth of capital into the industry and driving regulation forward. Ensuring that crypto startups meet the same standards as companies going through initial public offerings could also increase the quality of new projects. However, this wouldn’t be without cost. Initial coin offerings, initial exchange offerings and security token offerings often take place with speed and efficiency — and stringent regulations and disclosure measures would inevitably slow things down.

There’s also the oft-quoted issue of crypto scams. The industry has been around for more than a decade now, and yet it has still been struggling to shake off the issue of fraudulent ventures that continue to cost vulnerable investors millions of dollars. Some argue that the fact these incidents are continuing to happen with such frequency serves as proof that the crypto world needs experience to gain legitimacy. On the other hand, others say self-regulation is the solution — an opportunity to create checks and balances by getting crypto businesses to mark each other’s homework and ensure that everything remains above board.

What lies ahead for crypto regulation?

With so many diverging opinions, and so much uncertainty over where the crypto and blockchain industry will be from a regulatory standpoint in the coming years, intelligence from prominent exchange executives, central banks, governing bodies and investors can be invaluable when it comes to assessing the mood music.

The Crypto Finance Conference says its aim is to provide light in the darkness, acting as a lighthouse in the choppy waters of the industry’s regulatory standing. Experts are on hand to answer personal questions, and a plethora of networking opportunities are provided so attendees can forge meaningful contacts and delve into areas of personal interest in greater depth.

Held in the Swiss Alps resort of St. Moritz from Jan. 15 to 17, 2020, there are already several sessions on the agenda that tackle the issue of crypto regulation head on. There’s an overview of regulatory and infrastructure development on Wednesday, alongside an insight into the approach that central banks are taking toward national digital currencies and tales from the global regulatory frontline. Thursday delivers a deep dive into Switzerland’s ecosystem, the international challenges associated with banking in the world of blockchain and crypto.

The already substantive agenda is going to receive a further boost as additional sessions are announced in the coming weeks. For the sharpest analysis on what lies ahead on the bumpy road toward regulation, the Crypto Finance Conference is shaping up to be an essential fixture as the industry heads into a brand-new decade.

