The Crypto Regulation Landscape

                  

We’re over half way through 2018 and it most definitely looks to be the year that cryptocurrency continues to make waves and headlines. The digital asset will no doubt be further accepted in to the mainstream as a viable form of currency, however with increased popularity, caution naturally follows. As a result of this, we begin to see regulation be a hot topic whenever the subject of cryptocurrency is discussed.

The conversation around regulation is a hot-bed of opinion, and one that will no doubt continue for some time until the market is fully understood by everyone. However, one area that can be agreed upon when it comes to regulation is the need to protect both the trader and the trading platform.

To date most cryptocurrencies are not administrated by any central governing body, therefore the lines around cryptocurrency can be easily distorted. Perhaps for some, this is why regulation would be a good thing – creating a sense of calm to what is an ever volatile market. However, for others, they feel that by simply educating the masses and creating a deeper understanding of cryptocurrency and blockchain technology, we can alleviate these fears without the need for regulation.

If we look at the volatility of the market, fluctuation is often the root cause. There is no doubt that increased regulation would reduce the level of price volatility and market manipulation and in turn, reduce the level of risk associated with the market – especially as cryptocurrency continues to prove itself to be a successful means of funding what can be a viable business venture. Although it is this high level of success that is drawing attention from scammers, thanks to the appeal of generating large sums of money in a short period of time. This in turn leaves traders and trading platforms vulnerable and once more adding to this sense of distrust amongst the market.

Scammers are naturally a big concern for the market and having a regulatory body in place would significantly reduce the number of scams we are seeing and their level of success. Although it cannot remove the problem entirely, by introducing regulation the trust in the market remains intact and both traders and trading platforms can benefit. By ensuring there is protection for all, this is how the market will really continue to grow and trust will develop further and it is something all trading platforms must explore.

It goes without saying however, that too much regulation and red-tape will of course stifle what is currently a ground-breaking and thrilling industry and each trading platform must learn to create their own security measures in order to protect all involved. By working with the regulatory bodies, a healthy regulation will be welcomed, but overburdening could diminish the market altogether.

Keeping this fine balance between the two is something the industry must work on together if we wish to see continued growth and want the market to flourish. This will of course take time, as when the conversation of regulation raises its head, we often see a dip in the market valuations before they once more steady themselves.

It is not yet clear how regulation will fully impact the industry but by working together, we can at least continue to build a market full of excitement and innovation.

By Laurence Bray Director of Stature PR and CMO of Searched 

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