Although regulation is often perceived as a cumbersome impediment to innovation and progress, this is rarely the case. Regulation can help steer an industry in a positive direction and help discourage dishonest players from ruining it. Given the exponential growth of blockchain technology projects and cryptocurrencies, regulation can help the industry maintain a realistic growth trajectory and prevent unnecessary failure and losses.
Well-known crypto trader and proponent Ran Neu-Ner said “regulating cryptocurrencies is a good thing and it might even help advance the digital currency market,” in a CNBC article. He further added that crackdowns will help “catch the people [conducting fraudulent activities] because we have to weed out the bad actors.” It would be bad for everyone if bad actors were able to remain in the industry and cheat people — it would promote a negative opinion of cryptocurrencies. This process is a clear sign of maturation and growth.
Many people expect that cryptocurrency regulation will bring with it certainty. Director of Regulatory Relations at Ripple Ryan Zagrone stated in a Raconteur report that “regulatory certainty is needed and greater coordination. Self-regulation works where you have a mature industry and strong governance.” Cryptocurrencies currently have neither.
A Harvard Business Review report further pointed out that “Without clear regulations, cryptocurrency innovation in the United States is being stifled. This is caused by a fear born in entrepreneurs who do not want to break any laws. Uncertainty in regulation also causes investors to take a step back as well. This has been indicated time and time again in modern cryptocurrency markets.
Our previous article What is the current state of global crypto regulation shows that in the following graphic:
Despite the fact that most people agree that regulation will not stunt innovation in crypto, “the challenge regulatory authorities and the industry face is that cryptocurrencies are so new that they do not fit neatly into laws that were passed decades ago prohibiting misconduct in the securities and commodities markets.” However, this is quickly being addressed by government bodies worldwide.
The Berlin-based FinTech start-up spot9 is planning to become the world’s first bank that offers full crypto services. Smart banking for smart people — this is why spot9 is focused on digital and mobile banking products with fully integrated fiat and digital currencies. These include highly secure and transparent real-time cryptocurrency transactions as well as smart contract-based banking solutions.
spot9 is going to expand the cryptocurrency infrastructure in Germany and other European Countries through the offering of financial services like crypto ATMs, global crypto credit cards, point-of-sale (PoS) devices, and comprehensive mobile banking solutions. spot9 will announce an SCO later this year to offer one of the first German security coins. It is soon be made available on www.spot9.de