Why we should embrace good crypto regulation!

Nothing gets on the nerves of crypto investors (both professional and retail) as the word “regulation”. Only the appearance of articles which have “regulation” in their titles or as keywords threin have been shown to have a negative effect on the market – be it miniscule. However, given the status quo, it is important to bear in mind that regulation is in fact not that bad. In fact, in my opinion, it would be one of the best things that can happen to crypto in 2018.

Curb ICO Scams
Currently, it is near impossible for a week to go by without there being a sleazy article pointing out how project X has managed to scam $X millions out of investors. Given the nascent status of crypto, this is definitely a bad thing as it further worsens the public’s perception of shitcoins / scams and fraud. Nothing curbs demand as the possibility to lose one’s complete investment. As such, the introduction of a strict ICO framework by governmental bodies or independent institutions could be a boon to all long-term investors. By reducing negative press, retail investors would not be as bombarded by FUD articles all the time. Recently, the government of Gibraltar has started developing one such framework.

Fight the “Money Laundering” Image of Crypto
Whether or not you are an investor, it is impossible to have read about crypto without having seen several articles pointing to the illegal use of cryptos to launder money. In fact, reality is quite possibly not far from the rumors. Introduction of anti-money laundering regulation would do no harm to retail and institutional investors, who are in no negative way impacted by them. True, it is possible that such regulation might limit the anonymous nature of cryptos but I do believe that the positive long-term effect is more desirable.

Legitimize Cryptos
Cryptos are currently nascent. There are almost no rules or regulations; in fact, you can do as you please – as many people have done. However, the problem with this is that it gives the perception of investments in cryptos as being extremely risky. To see strong growth in the market, we need acceptance, which will not happen as long as the image of cryptos continues to be thus. Legitimizing cryptos through proper regulation would be of extreme long-term benefit as it would reduce the risks to new and inexperienced investors.

Cautionary Notes
Well, I do realize that it is very ideological to consider that all regulation would be beneficial. In fact, as China and other countries have shown, it is mostly used to push a particular government’s agenda at the detriment of investors. However, it is my hope that we see logical and beneficial regulation – as the one developed in South Korea and Japan - so that we slowly move away from the myriad of scandals which plague the crypto world.