The Below Article Was Commisioned By LBTC to the CryptoBulletz.
Over the past few years, Bitcoin surged from the dark corners of the virtually unknown to a $185-billion-dollar marketplace where cryptocurrencies are bought and sold by millions daily. Gone are the stone ages. Welcome to an era where Bitcoin, Ripple and Ethereum alike are discussed on mainstream news outlets and it seems like you can hear whisperings of “What do you think about Bitcoin” wherever you go. Although still going through what could be described as an awkward pre-teen phase, cryptocurrencies have successfully made it past infancy and many are starting to take notice of its growth. Some of those paying very close attention are various governments agencies. Whether government regulation will foster or stunt the growth of cryptocurrencies remains to be seen. But here’s some of what’s happened so far.
In China, Bitcoin was outright banned at the end of September. Exchanges were forced to cease operations. Miners were advised to co-operate with government officials and traders were left wondering how long this ban would/could last. The impact on the overall market was big but short-lived. With China gone, despite once boasting the largest percentage of traders in crypto, it was onward and upward. After weeks of fear, uncertainty, and doubt, bitcoin pushed forward. But now that cryptocurrencies are banned in China, most agree, even anticipate the Chinese government allowing its citizens to resume trading.
Many welcome the idea of government regulating the market and predict a big boom if and when it does. In this circumstance, experts agree the results would be positive for not only the Chinese but the entire world of cryptocurrencies.
The same can not be said for The United States. The thought of the SEC/U.S government regulating bitcoin send shivers down the spine of most in the crypto world. Their recent outlook on Initial Coin Offerings was enough to cause most ICOs to outright refuse any funds from potential American investors. Crypto Exchanges such as Bitfinex are ceasing to facilitate U.S traders even though the SEC hasn’t even made a clear ruling on the matter. But the grey area alone is enough to cause crypto business owners and fundraisers to step back in a preemptive move to avoid potential issues in the future. I don’t think there are many who believe U.S regulations wouldn’t result in a crash that would cripple the market. However, the Stock Market is regulated and after the dust settles, the market would likely recover nicely traders pour back into the market, making those who “bought the dip” very rich in the process.
Elsewhere, the total ban of ICO and margin trading in South Korea had minimal impact and the rumors of Russia banning bitcoin didn’t even cause a hiccup. And similar to the situation in China, most experts welcome the idea of Russia regulating bitcoin for its citizens as they believe it would bring more stability and investors.
Regulating cryptocurrencies will not be an easy task and the lawmakers will have much to analyze before making their decisions. Some believe the move is right around the corner. While others don’t see much happening in the near future. Regardless of what school of thought you agree with; government regulation is something on every crypto trader’s mind. And why wouldn’t it be? Though the outcome is unclear, one thing is for certain, the world of cryptocurrencies would be changed forever.