It’s important for this section to understand that Bitcoin and other cryptos are ‘here to stay’
We have the eyes of the regulators on the crypto sector but their perception of cryptocurrencies has not been friendly. But all of that may change soon?
Many countries have been taking note of the growth of cryptocurrencies and the amount institutions and traders are investing in the field. While some support the technology, others have been finding it irksome. However, the interest has been rising exponentially and the regulators have taken a rather cautious outlook toward Bitcoin and crypto markets.
According to eToro founder and CEO Yoni Assia, the rising participation from retail and small investors can push the regulators to shed their pessimism about crypto and rethink the oversight of the crypto industry.
Assia noted in an interview:
“We are seeing a significant increase in the interest of retail investors and traders in the crypto market. As a part of that growth we should expect also regulators to carefully look at this growing business of retail investors in the crypto markets.”
Recently, the Financial Conduct Authority in the United Kingdom ordered Binance to cease all activities. This decision by the authorities sent a wave of panic among crypto users in the country and businesses. Although increasing regulations around crypto is not new, Assia believed it was time that the regulators realized that crypto was here to stay.
“The most important thing for regulators is to understand crypto, and understand that it is here to stay.”
The FCA’s move to bar Binance from operating within the UK conveyed the concerns still ailing the authorities and the lack of understanding. However, given the rise of scams especially during the bull run period, pushed Assia to note that it was not just the investors who needed to study and understand crypto, but also investors.
“An asset that went up 100 per cent can very easily go down 50 per cent. There’s no doubt that if something went up 1,000 per cent it’s very volatile, and you should understand that as part of your portfolio allocation.”
Assia attributed the rising regulations to increased demand for crypto and with this logic, the growing interest will invite more strict regulations.
China, Mexico, South Korea among other countries that have already been updating their regulations with regard to the crypto sector, but with Bitcoin taking a bearish break currently, these regulations will be put to test during the next rally. Bitcoin has already shown buying pressure as it rallied from the lows of $30k to $36k within three days. At the time of press, BTC was trading at $36,166.