It will come as no surprise to anyone that has dabbled in Cryptocurrency ownership that there are changes afoot in terms of regulation and what this could mean for various industries. The regulation of Cryptocurrency is an ongoing debate and one that is not going to be settled anytime soon – especially as so many people sit on different sides of the fence in terms of whether the industry should have stricter regulations or not.
Should The Industry Be Regulated?
Whether or not Cryptocurrency should be regulated is something that is an ongoing debate – with people firmly on both sides of the fence. Whilst some people recognise that regulation could be useful, there are others who like Cryptocurrency because of its unregulated nature.
For example, it is the lack of an official paper trail that leads some people to favour Cryptocurrency over other currency choices. This doesn’t mean that they’re up to no good with Cryptocurrency, but it does mean that they may like to do things like place a bet at an online casino without it appearing on their bank statement.
How is Cryptocurrency Doing?
Whilst there are definite arguments for and against regulation, the way that Cryptocurrency performed in 2022 has led many people to sway towards the need for stricter regulation. 2022 saw a number of well-known Cryptocurrency platforms crash and anyone with an interest in Cryptocurrency will know that the value of many of these plummeted.
After an extremely tough few months for crypto investors, some experts are calling for government regulation across the globe to keep crypto alive. Casino sites like these have maintained customer trust due to regulation and legislation protecting users, and that could be the way crypto goes in the future.
The Cryptocurrency Winter
With Cryptocurrency having a tough time over the past few months, many say that we’re experiencing a Crypto Winter and there are various opinions as to when this is likely to come to an end. Back in 2021 Cryptocurrency was seen as a good way to make money in investments but things certainly took a change in 2022; where we saw several well-known Cryptocurrencies take a dive in value and well-known platforms close down for various reasons. As yet, Cryptocurrency on average has been unable to gain back the value that it lost; which is why it is considered a Cryptocurrency winter.
A so-called winter in financial investments isn’t something unheard of. However, with digital currency, we don’t have a history or track record to look back upon to see how we can expect it to perform and when a bounce-back might happen.
The dip in value alongside the closure of several well-known Cryptocurrency platforms where investors lost significant amounts of money has led many people to believe that there should be a form of regulation, or at least some protection for investors. Although no one can guarantee that any investment value will increase, the protection of money when platforms close could be seen as a positive – in a similar way to the FCA and their protection of money placed in the UK bank accounts.
What Would Regulation Mean for Other Industries?
If Cryptocurrency does become regulated in any way, it is important to consider what this could mean for other industries and not just those strictly involved in Cryptocurrency.
For example, if Cryptocurrency becomes a less favourable way for people to invest their money then it could be that other investment types gain popularity as an alternative. After all, if you are going to invest in a type of financial investment that is regulated you may as well go for something more mainstream.
Although of course, it is worth considering that Cryptocurrency regulation could help others gain confidence in this way of investing. The unregulated nature of Cryptocurrency means that some people do not see it as a safe or legitimate way to invest their money and instead stay away from it. If regulation was brought into play or even protection from something similar to the FCA then this could help people feel as though Cryptocurrency is a legitimate way to invest their money.
Over recent years we have seen Cryptocurrency within various industries increase in popularity. For example, Cryptocurrency casinos and using digital currency to place bets have become more commonplace. However, if Cryptocurrency regulation was put into place then this alongside the currency gambling regulations that are already in place could affect things. The good news is that the betting industry is an industry already well versed in making changes and keeping up with regulation changes, so if they do need to make adjustments to meet any Cryptocurrency regulation changes then this should not be too much of a hard task.
Will We See Cryptocurrency Regulation in 2023?
Realistically, bringing in Cryptocurrency regulation is a massive job and one that probably can’t happen within the next 12 months – although that isn’t to say that the balls won’t start rolling this year. One thing that has to be considered with digital currency regulation is the fact that it is a global product which means that different countries are likely to have different rules that they wish to bring into play – much like the online betting industry. Of course, this leaves loopholes open and people will be able to get around any rules put into place, which is something else that should be considered arranging any new regulation.
The Government has started to dabble in Stablecoins and encouraging people to invest in these if Cryptocurrency is their investment path of choice. Stablecoins have their value linked to currency and as such tend to be less likely to fluctuate. That said, a Government-backed, regulated Cryptocurrency isn’t anywhere near as cool as something like Bitcoin and therefore people might be less keen to take up this type of investment.
Will we see Cryptocurrency regulation in 2023? Probably not, but that doesn’t mean it isn’t on the cards and we do know that the ongoing debate is one that is likely to continue throughout this year & beyond.