2019 Could be a Good Year for Crypto Regulations Worldwide
In 2017, Bitcoin (BTC) reached an all-time high close to $20,000 but since then it has been struggling in terms of price performance. It is possible to see that Bitcoin lost more than 80% of its value since that moment. Now, enthusiasts and crypto supporters are waiting for a new crypto bull market to start once again.
Because of this situation experienced by Bitcoin between 2017 and 2018, regulators have been paying close attention to virtual currencies. Nevertheless, a good legal framework regarding cryptocurrencies remains to be implemented.
Marcus Hughes, the lead counsel for the Coinbase United Kingdom, said that 2019 could be a very positive year for Bitcoin regulations around the world. During an interview, he said that during this year the market will see ‘big developments’ in terms of regulations, particularly in Europe.
Several countries have taken the decision to directly ban cryptocurrencies from their territories, including China. Other countries such as Malta or Switzerland are trying to provide better regulations for the space and several companies are already settling their operations in these two countries.
The European Union (EU) did not take any specific regulation for the continent in terms of virtual currencies. Furthermore, different European countries have taken different approaches in terms of virtual currency regulations. The European Banking Authority (EBA), for example, believes that crypto regulations should protect investors from scams and other fraudulent activities.
On the matter, Hughes commented:
“We could end up with E.U. members creating their own crypto laws, but it’s certainly possible we’ll get a unified approach in Europe. It would make the life of companies like Coinbase a lot easier.”
Regulation will clearly improve custody offerings and how companies manage their businesses. Nevertheless, a mature regulation requires a lot of time to be built.
Hughes has also revealed that executives at Morgan Stanley believe that Bitcoin is not going away any time soon. Moreover, he mentioned that it is important for the cryptocurrency market to move beyond the speculation phase of Bitcoin and cryptocurrencies. It is important to move towards the utility phase in which Bitcoin and other digital assets become widely accepted and understood.
Coinbase is one of the largest and most popular platforms for transacting virtual currencies.