A slew of regulatory moves announced this week is positive for the cryptocurrency space, according to Fundstat Global Advisors LLC.
Recent regulatory clean up like the U.K. Financial Conduct Authority banning the sale of crypto derivatives and the U.S. Department of Justice issuing an enforcement framework is beneficial in the long term because it will help reduce nefarious activity in the industry, according to a report by Fundstrat Global. They cited regulators “cleaning up bad actors” is helping the crypto industry. The market’s focus on news that Square Inc. bought Bitcoin and Bitcoin’s ability to push past $11,000 shows that crypto can power through these things, the report said. Better crypto regulations would increase startup talks in the crypto community.
Regulators committed to stomping out illicit activity involving crypto.
“Actions unsurprisingly indicate the U.S. and global regulators are committed to stomping out illicit activities involving crypto, securities violations, money laundering, price manipulation, and noncompliance with banking regulations,” Fundstrat’s strategists wrote. “On balance, we view recent news as a positive for crypto markets, despite select smaller pockets of risk, and we believe the prevailing bull market trend is intact.” Bitcoin has moved back above $11,000 after a successful defense of the $10,000 level in early September. Crypto enthusiasts were also cheered by Square Inc.’s purchase of $50 million in Bitcoin in a bet by CEO Jack Dorsey that it will be an instrument of financial empowerment.
Crypto regulations in most countries are still in a grey area.
Crypto regulations in most countries around the world are still in a grey area. However, some countries have embraced the tech and innovation behind crypto and have provided the industry with favorable regulations. South Korea earlier this year passed legislation making crypto trading legal in the country. Crypto regulations in the United States are also unclear in the most number of states. Earlier, US CFTC said that they are planning on making a ‘holistic framework’ for the crypto industry.
