Calls to come up with regulations to govern the cryptocurrencies have become more frequent and we cannot continue to ignore the impact that they could have on the market. What this means is that the regulators will come up with policies that will govern the manner in which various existing digital currencies such as bitcoin as well the new ones launched into the market will trade on various exchanges.
Most of the renowned digital coin brokers from Europe such eToro Europe LTD have come out in public demanding transparency during the regulation policy creation and implementation. In an article posted on Bloomberg, the brokers have requested that they clear the air and demystify the speculations that have over the last few months resulted in massive loses in revenue due to lower number of people investing in the cryptos.
Yes to Regulation but Ensure Transparency
According to one of the executives of Bitpanda that operates from Vienna, Eric Demuth, he states that the firm is happy to hear that the industry will be regulated but has reaffirmed the need to make sure that the policies benefit all parties and does not undermine or lead to one party involving in trading of cryptos making loses. He further stated that implementing basic jurisdictions that do not cover all the loose ends such as Malta could spell doom on the industry.
Transparency is however considered a delicate matter in both fiat and digital currency world owing to the fact that the crypto market gained popularity in 2009 and is worth $800 billion now. Notably, there are countries where people interested in the currency are able to purchase bitcoin of any amount from cash machines that are placed in strategic places in the cities without providing ID card. There are also reports that the currencies are using to buy properties, luxury items, as well as illegal items online secretly.
Japan Implemented Regulations
Japan is one of the few countries that have come up with regulations to govern digital coins. The implementation of the regulations has made the country a major digital coin hub in the world. Here in the U.S Coinbase has managed to accrue more than 20 million users and all of them are required to provide valid identity documents in order to use the trading platform.
Notably, business is not that good in Europe with most brokers finding it difficult to get new customers. The retrogressive compliance rules are the most plausible reasons for this trend. Dealings in crypt via unregulated firms is now almost been classified as illegal.
European Union Laws
There is hope though, the European Union is currently carrying out studies to get a clear perspective of the crypto trading world and will soon come up with a policy that will benefit all. They are also looking into the possibility of apply the current rules into crypto trading to protect investors and traders.
The main point to note is that there is need for crypto brokers and the crypto businesses are consulted during the creation of the policies as well as the implementation.
5,218 total views, 3 views today