Vageesh Potnis, a prominent expert in cryptocurrency, has projected that significant structural reforms will occur in the stringent regulations surrounding cryptocurrency, which will subsequently benefit both investors and businesses. Potnis shared his insights during a presentation at a blockchain conference this week, referencing recent regulatory changes in the United States, European Union, and China as pivotal factors.
Potnis highlighted that while some countries have made notable progress, others are still struggling to implement effective regulations. The EU has taken a significant step forward by enforcing stringent punitive measures under the advertising enhancement regulation known as Cry-MiCa, which went into effect in July 2023. This framework aims to bolster consumer safety and corporate governance in the market by establishing stricter requirements for obtaining operating licenses and reporting obligations for cryptocurrency service providers.
Conversely, the United States has lagged behind in cryptocurrency regulation, largely due to ongoing legal battles involving the Securities and Exchange Commission (SEC) against major industry players like Ripple and Coinbase. Potnis noted that, despite some positive developments, such as the recent approval of ETFs for the spot market in Bitcoin and Ether, the overall situation remains challenging. He believes that ongoing regulatory issues will also affect cryptocurrency volatility, especially as they may unfold soon.
“Countries are increasingly recognizing the necessity for clearly defined regulations to protect investors and prevent corruption,” Potnis stated. “The next few years will be critical, particularly with global powers like the US and China finalizing their cryptocurrency regulation strategies.”
In particular, China’s outright ban on both Bitcoin mining and transactions serves as a warning. Potnis anticipates that more nations may follow suit if cryptocurrency is perceived as a threat to their financial stability, a trend already seen in China.
For investors, Potnis advises a thorough understanding of the evolving regulatory landscape, particularly in the US and EU, as these regions are likely to lead the way for the rest of the world.
As global regulations continue to develop, Potnis cautions investors to stay alert, as understanding market movements will require close attention, and they should be prepared for either change or stability in the cryptocurrency market’s trajectory.
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