Crypto regulation good

The Boeing Co. An AMC officer joined the board of new investment Hycroft Mining -- but it wasn't who retail investors wanted. Discovery trading on its own for the first time on Monday. Will it continue lower? In a scan of "stocks on the move" Tuesday I noticed that Cisco Systems was in the midst of breaking a key support area. Shopify is on a " year mission to make commerce better for everyone. MarketWatch Picks has highlighted these products and services because we think readers will find them useful; the MarketWatch News staff is not involved in creating this content.

The consumer price index, which measures what consumers pay for goods and services, rose 8. Pullout of Locked-Down Shanghai Dee. On Monday, Warner Bros. By choosing to go down the tax-free route rather than pursue a more complicated split-off, the spinoff appears to have resonated well with investors. One reason for the positivity revolves around a sense the company will now be able to fully turn its attention to the wireless market, where T faces stiff competition.

Mirroring investor sentiment, J. Twitter is in an uncomfortable situation at the wrong time. MDAU refers to users who come to Twitter every day and use the platform and applications, where they may be exposed to advertising. After today's surge, in fact, Peabody's stock price hit highs not seen since On April 12, European coal prices surged to highs not seen in more than a month as the market tried to assess the impact of the latest sanctions on Russia on the global coal market.

Dow Futures 34, Nasdaq Futures 13, Russell Futures 1, Crude Oil Gold 1, Silver Vix CMC Crypto FTSE 7, Nikkei 26, Read full article. More content below. In this article:. A representations of cryptocurrency Ripple is seen in front of a stock graph and U. Story continues. Read more. Recommended Stories. Yahoo Finance Video. Any two blocks. Over 7 in 10 Americans own a credit card.

So how does the crypto industry carve up a bigger slice of the global money pie for themselves? While most people attribute the bank crash to the greed and negligence of big banks, the truth is a little more complicated, and indeed has more to do with unregulated loopholes that those in power exploited, according to Timothy Masad, ex-chairman of the Commodity Futures Trading Commission CFTC :.

What some Bitcoin enthusiasts fail to distinguish is that a primary cause of the global financial crisis was the growth of financial intermediation outside our traditional regulatory framework, rather than the mere existence of intermediation. Non-bank mortgage originators, securitization, derivatives, and the government-sponsored enterprises all contributed to dramatic growth in mortgage lending outside of traditional banks… There was, in short, no prudential regulation of the so-called shadow banking sector.

Regulations establish order so that a system can function more consistently, safely, with mostly predictable outcomes. This means that in a more controllable environment, cryptocurrencies can be seen as a normal, less volatile risk that can be managed with sophisticated technology and have better protection. By tying the real-world identities of crypto owners to virtual assets passing through compliant VASPs, the crypto industry will be able to clean up its act.

Exchanges and regulators can better identify and isolate unsullied virtual currencies from those tainted by money laundering, terrorism funding, and other crime. All stakeholders will be able to gradually trace the origins of crypto as more verified real-world identities start to illuminate the blockchain.

This will drive bad actors to underground marketplaces, where their virtual assets will either exist in a legal gray area or in clear violation of the law. This uncertainty will make unregulated assets less fungible and therefore lower in value.

Conversely, with regulatory requirements making the status of certain virtual assets e. Bitcoin, stablecoins and privacy coins and transmittal requirements binary, black or white, right or wrong, VASPs and financial institutions will be able to prove the bona fides of crypto under their custodianship, increasing its value as a long-term investment. This is important not only for authorities but also for individual investors. A recent YouGov poll showed that the average American is very distrustful towards cryptocurrency, even if offered by a financial institution.

Furthermore, most U. Turning this misconception around should be a collective goal for the entire crypto industry, and regulation will make for a great ally. Only with clearer regulatory guidance can financial institutions start to shed light on gray areas and classify assets through a long-term lens, according to their legal status.

Already we can see the impact that regulation is having on the industry, with the recent delisting of several privacy coins from many Asian exchanges a clear indicator that VASPs are taking tough steps in order to get their house in order. Authorities and financial institutions move notoriously slowly when it comes to technical innovation, thanks to outdated systems, bureaucracy, cross-border monetary restrictions and little financial impetus to change the status quo. This can be witnessed in the panicked knee-jerk reaction authorities and central banks worldwide had to the unveiling of Libra, a perceived threat to the global financial system that they were completely unprepared for.

For example, the SWIFT foundation was founded in , but only went live with its messaging service in and expanded to Asian countries like Singapore and Hong Kong in the s, after clearing several cross-border hurdles. Traditional finance is not intrinsically an industry that thrives on disruptive technology.

Regulation makes innovation easier to classify and therefore understand. Financially institutions need to clearly understand the landscape in which a new asset class operates, and the risk factors associated with it, before it can actively embrace and promote it. Under present circumstances, this is impossible. Financial institutions cannot operate and create financial instruments in a market where they cannot clearly determine the origins and clear the long-term legality of its underlying assets.

For example, if a bank sells Bitcoin to a client, which is later traced back to an exchange hack or act of terrorism either preceding or following the transaction, it opens itself up to criminal investigations or class-action lawsuits that could result in its demise. In a financial industry where an institution like Barings Bank met its demise directly due to the fraudulent behavior of a single trader and banks ceased trading in the aftermath of the banking crisis, financial institutions are increasingly averse to risk-taking and stepping into gray areas.

The effective regulation of the cryptocurrency industry will transfer maturity, stability, and fungibility to all compliant virtual assets, raising their appeal to institutional and individual investors who will start to view them as a legitimate long-term investment, instead of a short-term speculative opportunity.

A high cryptocurrency price is not necessarily a good thing. Many virtual asset service providers helped to facilitate these Wild West conditions. A regulated marketplace, where real identities can be tied to illicit behavior by authorities, creates a more level playing field for all crypto investors. Cryptocurrencies will be judged on their merits by the market and be subject to purer supply and demand economic forces.

A bigger investor pool will create stability by providing liquidity, which will have the knock-on effect of reducing volatility in favor of reliable long-term price predictability. Growth will be organic and business fundamentals will allow investors to more accurately determine the underlying value of virtual assets. Knowing the parameters in which they can operate, cryptocurrency projects will be able to move beyond current tightly-controlled pilot programs and sandbox testing and offer Big Business customized solutions to existing problems without having to fear a backlash from regulators.

The lack of current regulations limits the use cases of most current cryptocurrencies as mostly theoretical, in the absence of practical validation. Large corporations are fearful to implement virtual assets into their operations, worried about attracting the kind of condemnation that Libra received. Financial institutions are already integrating blockchain technology into the very fabric of their operations, as can be seen by permissioned distributed ledger technology DLT implemented by the likes of JP Morgan and Wells Fargo.

By gaining regulatory approval, they will also be able to develop specific financial instruments that will result in more fungible assets. The cryptocurrency landscape of indeed resembles the moon. Is this really what Satoshi Nakamoto envisioned? Instead of creating a decentralized financial utopia, their over-reliance on VASPs created a new class of financial intermediaries that are less accountable than big banks and other financial institutions and operate in murky conditions.

Clear and actionable regulations will pave the way to a much-needed control layer for virtual asset custodians and owners. VASPs will be able to reject undesired or suspicious transaction requests, freeze irregular transmittals in transit or even reverse malicious transmittals after the fact if illicit behavior or purposes such as human trafficking can be established by law enforcement.

Compliant VASPs will have the ability to collectively verify and cross-check the real identities and intentions behind public addresses, passing this information over to authorities when required. Bad actors and exit scam con artists will know that if their crimes are successful, they will still leave a trail of breadcrumbs that might follow them for the rest of their lives. Lastly, the technological advances in security thanks to the arrival of sophisticated financial institutions will be tremendous.

AML-compliance is also much more mature and sophisticated in traditional finance, and there will be no shortage of AML specialist companies that VASPs will be able to consult with in order to identify bad actors worldwide. Regulated crypto markets will future-proof compliant virtual asset transmittals and allow it to be sent to almost any regulatory-compliant destination in the world.

Pity, that fiat exchange cryptocurrency final