Hints to Bitcoin Ban in Britain
Prime Minister Theresa May has declared that she will consider ’very seriously’ to make new rules which will concern the trading of Bitcoin.
The PM pointed out that there should be more attention paid to the extremely volatile digital markets, which are anything but strong and stable.
‘Cryptocurrencies like Bitcoin, we should be looking at these very seriously, precisely because of the way that they can be used, particularly by criminals,’ said May at Davos.
May also thinks that there are increased chances for Britain to attract tech companies once the country exits the European Union.
The slightest possibility of regulatory actions has plummeted the prices of the cryptocurrency markets.
In the past 2 weeks, there have been two crashes which involved thousands of digital coins’ prices plunging due to fears that a global clampdown will end the freedom that comes along with the unregulated nature of the crypto market.
South Korea, one of the largest market for cryptocurrencies, will ban the use of anonymous bank accounts in crypto trading starting on January 30, said its regulators.
Furthermore, the French finance minister also requested that newer regulations be imposed on cryptocurrencies to stop them from being used as a medium for tax evasion or finance terrorism.
One analyst believes that these new rules could actually benefit cryptocurrencies.
EO of cryptocurrency exchange CoinMetro, Kevin Murcko, said that: ”Regulation in the UK may not necessarily be a bad thing for the digital asset economy: government regulation is a legitimizing force. New regulations would mean people would feel safer investing in cryptocurrencies, as fraudulent brokers will be excluded from the market.”
”As different nations move to regulate cryptocurrencies in different ways, the short-term impact on the markets will be outweighed by the longer-term stability afforded by consumer protections and the elimination of fraudulent entities and practices. Compliance with an established regulatory framework, if done right, could lead to wider mainstream adoption of cryptocurrencies and greater stability in emerging markets.”
He also believes that regulatory actions should be welcomed by the crypto community, rather than rejected, as they will encourage adoption by mainstream investors and the general public.