Bitcoin will prosper regardless of regulations or prohibitions. It hurts whoever it hurts.
Bitcoin has arrived in the mainstream again, but this time it is different, with great sites with an eye on the next big entrepreneur or company advertising a cryptoma-related service or purchase.
It’s interesting to see this now as we’ve been waiting for years for this day to come. We are witnessing a global transformation in finances that is still in its initial stage, a transformation that, in a way, goes beyond the wildest speculations.
The price of Crypto Code seems quiet. It is quiet after an intense year of volatility, with the „Kryptonians“ seeing one of the worst falls in March and already in November the currency hitting record prices.
It is as if Bitcoin is not knowing where to go and reflecting a bit: „Are we really doing this? What are the critics of digital currency thinking?
The latest report from the Financial Stability Supervisory Board (FSOC), which includes the U.S. Treasury, said:
„Financial innovation can offer substantial benefits to consumers and businesses by meeting unfulfilled or emerging needs or reducing costs, but it can also create new risks and vulnerabilities.
For example, there has been an increase in the number and type of digital assets with many increasing in value.
Like traditional assets, digital assets can also be subject to operational and counterparty risks that can be disruptive to users and the digital asset ecosystem as a whole.
Everyone wants to be a part of
Paxos (crypto platform) now wants to be a bank. The British Standard Chartered Bank wants to launch a crypto trading service. A German bank, Bankhaus von der Heydt (BVDH), should issue a stable currency in euros. A Canadian bank has launched a bitcoin and ethereum fund.
Australia’s leading bank, Gallantree, is trading bitcoins, buying and selling for companies, while one of Asia’s largest banks is doing this for institutional investors.
The largest US bank, JP Morgan, has completed a live blockchain-based transaction with the system expected to go live next year, while another bank in Berlin has listed the first cryptomain index fund in the OTC markets.
A director of Twitch, Amazon’s streaming platform, has invested 25% of its economy in Bitcoin, and one of the US’s largest policyholders, MassMutual, has bought $100 million in Bitcoin. MicroStrategy, the leading institutional investment firm, has announced it will buy an additional $650 million in digital currency.
Do you understand?
We are at an inflection point of Bitcoin in the mainstream as a reserve asset of value. It has just begun, but it seems the speed is frightening and nobody wants to be left behind.
After criticizing the digital currency in the past some are twisting their nose. The crypto market is now a high-end financing. Sophisticated, totally cool, and even luxurious.
Bitcoin challenges the entire global economy system. It doesn’t even say how things should be done, it just does its own thing and others look at this digital money.
New Finance, new regulation
„The US Treasury is working towards a new creation of rules that would effectively try to ‚plug a hole‘ by significantly restricting how financial intermediaries can interact with public blockchain networks, through so-called non-incorporated or self-hosted portfolios…
The kinds of approaches I’ve heard being discussed would be to take a sledgehammer to a problem that needs precision tools and could materially reduce the much more significant potential for public blockchains to transform many industries“.
That’s what Jeremy Allaire of the Circle platform said in a letter to the US Treasury. He seems to be panicking. However, there is little reason to think that this market can grow further without some sort of regulation of intermediate entities like Circle or Coinbase.
You obviously can’t regulate the protocol itself, or portfolios that are no different than the open source Bitcoin code. However, you can potentially regulate how much information you receive from compatible intermediaries, such as brokers and other crypto companies, that is, how much surveillance you apply where you can.
The proposed regulations are just rumors, so we cannot judge, but they seem quite unlikely to affect the vast majority of „cryptonians“ who are already AML and KYC proof.
Trying to ban Bitcoin will make it stronger
The approval of any heavy regulation is just another indication of the erosion of freedom, and thus Bitcoin would become even more attractive and valuable.
This is because Bitcoin is in many middle class paths, and the middle class in general complies with the laws, obeys the rules, so there is nothing that any law can do.