Bitcoin regulation: More drama ahead, World Economic Forum official warns

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TL:DR Breakdown

  • Bitcoin regulation will be debated in the coming weeks, according to Sheila Warren. 
  • Hester Peirce recommends a strategy for crypto startups. 
  • Coinbase’s listing spikes the bullish run of crypto assets. 

Recently, the crypto world has seen a lot of incredible milestones and massive adoption. However, the stock market and other traditional financial startups do not want to go down without a fight to what seems like a “financial battle.” That said, the world’s largest cryptocurrency — Bitcoin, is the primary competition. In this light, Bitcoin regulation will be debated in the coming weeks, according to Sheila Warren, the World Economic Forum’s chief of digital assets and blockchain. 

Bitcoin regulation will be looked into, Sheila disclosed in a conversation on Bloomberg. A couple of other regulations will befall the entire crypto space given the recent activities. Sheila’s comments are coming less than a day after the listing of  Coinbase shares on Nasdaq. It’s worthy to note that Coinbase is the first crypto exchange platform to achieve such a feat.

Coinbase’s milestone, combined with BTC’s price surge has made crypto enthusiasts optimistic that the crypto space would gain more legitimacy and probably end speculations about a proposed Bitcoin regulation. The crypto space may gain more legitimacy if the recommendations of Hester Peirce — commissioner on the SEC, are taken seriously. 

Hester recommended that cryptocurrency projects enjoy a three-year grace to establish their operations before listing their token as a security. However, these projects have to satisfy some conditions before this is done. 

In the recommendations, Hester mentioned that a blockchain network has to be decentralized at the end of the three-year grace period for it to avoid the SEC’s investigation. He also mentioned that the investigation coupled with Bitcoin regulation is practically unavoidable and would increase as BTC continues to rise. Sheila also noted that the recent increased adoption of the crypto space associated with Coinbase current listing was the beginning of a process and not the climax of Bitcoin regulation and other SEC investigation.

Bitcoin Regulation: Government’s close observation explained 

In truth, the government is trying to protect the crypto community from scams that is why the crypto market is carefully observed. 

The calls of Bitcoin regulation and other regulations of its kind arise from a desire of the government to have control over issuance and money flow within its borders. In other words, the government wants to be the central authority to all financial startups, including cryptocurrency. 

The nature of cryptocurrency threatens the dominance of fiat systems. 

Whether or not a Bitcoin regulation may be imposed remains to be seen. But with the recent activities surrounding the world’s largest cryptocurrency, we simply cannot rule out the idea.