The world’s eyes have been on the crypto market after a blistering bull run upwards, and world leaders have offered mixed reactions to the technology that looks to threaten governmental monopolies on currency.
Within a week The Central Bank of Kuwait issued a warning against cryptos saying that “real currency” is issued and regulated by the state, and the South Korean government announced an upcoming taxation of 20% on capital gains in cryptos.
In mid-April, the Turkish Central Bank announced that it will be banning payments using cryptocurrencies following the exit scam of Turkish crypto exchange where the Thodex CEO disappeared with around $2 billion of it’s customers money.
This marked one of the first of a recent slue of regulatory announcements by major world governments. About a month later, the Chinese government announced a “crackdown” on cryptos and crypto mining which sent the market tumbling once again.
It is still unclear what form the communist government’s crackdown will take, but Fan Long, the co-founder of Chinese government backed blockchain network, offered his insights to The Wall Street Journal.
“He said the authorities could take further action to restrict or eliminate ways for Chinese citizens to exchange yuan into cryptocurrencies in the over-the-counter market,” wrote Elaine Yu and Chong Hoh Ping.
Shortly after the announcements, the Chinese government reportedly begun setting up anti-crypto hotlines encouraging its citizens to report mining activity.
Many cryptocurrency critics cite these regulations as reasons cryptocurrencies won’t succeed, but crypto expert and general council at the Stellar Development Foundation, Candace Kelly, welcomes regulation with communication in her Cointelegraph article “Blockchain will thrive once innovators and regulators work together.”
“There is often a perceived tension between regulation and innovation. A pervasive narrative has emerged that these two important parts of our society are at odds with each other. In reality, it’s when these two come together as partners that we can effect change and transform our world for the better,” said Kelly.
She continues that dialogue between regulators and key stakeholder and experts in the field is the key to the best regulation for the most amount of people.
Her claims are echoed by Coinbase CFO, Alesia Haas, who welcomed regulation on Jim Cramer’s “Mad Money” asserting that regulation is a “benefit to our business and not a burden,” and that heightens legitimacy.
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