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Cryptocurrency to see “dramatic” regulations soon

As cryptocurrency gains increasingly more traction every day, the field is bound to experience some intense regulatory changes from financial guardians.
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Stack of cryptocurrencies. Bitcoin and most important cryptocurrency concept

As cryptocurrency gains increasingly more traction every day, the field is bound to experience some intense regulatory changes from financial guardians. 

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Sheila Warren, head of data, Blockchain and digital assets at the World Economic Forum, says:

“We’re going to see another round of pretty dramatic attempts at regulating this space. As there’s more and more activity in these spaces there’s more and more demand signal for regulators to get engaged and involved.”

According to Warren, the main challenges surrounding these regulations are undoubtedly going to be keeping up with the borderless nature of Bitcoin and other alternative coins, along with making sure the technology doesn’t stifle. 

Cryptocurrency exchange Coinbase Global Inc.’s hefty public debut on the Nasdaq, as well as Bitcoin’s ninefold rally in the past year, demonstrate that digital tokens are gaining traction. 

The frenzy surrounding Bitcoin reached new heights earlier this week, driving the largest digital currency to a record high of nearly 65,000$ ahead of Coinbase’s widely awaited direct listing. After the stock fell following its debut on Wednesday, the token retreated.

The effect of regulations on cryptocurrency

While crypto firms are beefing up their top ranks to form the emerging regulatory climate and combat persistent skepticism about digital tokens, governments are closely studying the field. 

This might have a  positive effect on the crypto field in a number of ways, including:

  • The value of a cryptocurrency is going to be accurately valued thanks to regulation,
  • Regulations will aid in the transformation of cryptocurrencies from speculative assets to functional ones,
  • The performance of virtual asset trading will be significantly improved by regulation, etc.

As the investor base widens, governments recognize the necessity for regulations and policies. This implies that, in a more stable setting, cryptocurrencies can be viewed as a standard, less unpredictable danger that can be handled with advanced technologies and protected more efficiently.

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