To say the last month in the crypto world has been nothing short of a wild ride would be an understatement. With approximately $475 billion exiting the market in a blink of an eye, many new to the market are likely getting their first taste of reality in the crypto space. At a time when regulatory bodies have explicitly warned of the danger and volatility this market poses, 2018’s first “correction” is providing regulators with potential ammunition that could be used in efforts to stymie or control the growth of cryptocurrencies in the marketplace.

One only has to look at recent developments in China and South Korea to see the significant impact each of their respective governments have had in their adoption of a hands-on approach in regulating cryptocurrencies. Lack of transparency and cooperation among parties participating in the crypto market has created contention and uncertainty within crypto-related businesses, investors, and the governments and regulatory bodies in their respective countries. To make matters worse, rather than collaborate with crypto-related businesses and develop thoughtful and beneficial regulations that foster growth and maturation, these governments and regulatory bodies have instead attempted to regulate cryptocurrency into submission. Just look at China, which is poised to increase regulations banning initial coin offerings (ICOs) and cryptocurrency exchanges in an effort to end all types of cryptocurrency in China entirely. Many of these countries, which have taken oppressive action such as this, have justified their behavior by claiming it is in the interest of consumer and market protection.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]