Speaking at the World Economic Forum in Davos, Theresa May expressed the need for closer inspection into digital currency markets, saying: “Cryptocurrencies like Bitcoin, we should be looking at these very seriously, precisely because of the way that they can be used, particularly by criminals.”
CoinMetro reacts to forthcoming regulations
The CEO of CoinMetro, Kevin Murcko, had this to say about the British Prime Minister’s statement, “Regulation in the UK may not necessarily be a bad thing for the digital asset economy: government regulation is a legitimising force. New regulations would mean people would feel safer investing in cryptocurrencies, as fraudulent brokers will be excluded from the market.”
Part of a rising trend
May’s announcement should not come as much of a surprise. Governments around the world have cracked down on cryptocurrency markets in recent weeks. South Korea announced it would ban the use of anonymous bank accounts in virtual currency trading, and last week France took steps to toughen their regulations to prevent them from being used by terrorists and other criminals. China, Russia, and Indonesia have also announced plans to enforce more regulations on digital currency exchange.
Murcko also added “As different nations move to regulate cryptocurrencies in different ways, the short-term impact on the markets will be outweighed by the long-term stability afforded by consumer protections and the elimination of fraudulent entities and practices.”
A solidified regulatory framework could lead to more businesses and services adopting digital currencies. It could also lead to greater stability for these immature and often volatile markets. But in the transition to increased regulation, the value of Bitcoin and similar currencies have crashed. It is too early to tell how these regulations will affect the cryptocurrency market down the line.