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Cryptocurrency Regulation Begins to Look Better

10 May 2018 No Comment

The year 2018 had not been good for the price of cryptocurrencies and the main trigger of the fear that drove them down had been the fear of regulation. However, as the first quarter is over, the market is beginning to digest the fact that cryptocurrencies must comply with regulation like any other assets. Online trading of cryptocurrencies can be much safer and reliable with a regulatory framework in place. There were also a few positive news related to regulation that flooded the market in the past month and we are happy to discuss them in this article.

A broader use of cryptocurrencies in the horizon?

We begin with a news from the United States, where Arizona had passed a bill in March which will allow residents to pay their taxes using Bitcoin or other cryptocurrencies accepted by authorities. The bill had to be reviewed by the state’s House of Representatives in order to be adopted. This proves that the government is glad to accept cryptocurrencies as payments and they do not consider them a threat to fiat money. Such a positive approach to cryptocurrencies can only raise hopes for the future.

Another key regulatory news comes from Japan, where all sixteen licensed exchange operators had taken great steps to create a self-regulatory body. The Japanese Cryptocurrency Exchange Association or JCEA promises to create the best practices and compliance standards which all members will be required to obey. The self-regulatory body will also act as an advisor for the other twelve exchange platforms that currently do not have a license, in order to assure a smooth integration in the system.

We now go back to the United States, where the Commodity Futures Trading Commission or CFTC had recently told their employees that there allowed to invest in cryptocurrencies. Other smaller countries had also shown signs of a positive approach to cryptocurrencies. The Supreme Court of Israel had recently prohibited banks from restricting crypto activity. That means banks are now allowed by block their clients from using their accounts to invest in digital assets.

Online trading of cryptocurrencies is becoming more popular as the time goes by and positive developments related to cryptocurrency regulation can only foster a growth of the industry. More regulatory measures are expected until the end of 2018 and investors are eager to find out what the future will bring to them.

Risk Disclaimer

Crypto currencies represent risky assets and are suitable for all investors. You should carefully consider your level of education and capital available before deciding to invest in crypto currencies. Losses can exceed deposits.

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