Wednesday was a big day for Bitcoin and crypto.
The largest cryptocurrency platform in the United States, Coinbase listed on the Nasdaq on Wednesday.
Coinbase’s IPO truly was a historic day for the cryptoverse and is undoubtedly driven by the world’s two largest cryptocurrencies, Bitcoin and Ethereum, inherently linked to Coinbase, having risen 800% and 1,300% respectively over the past year.
However, along with these spectacular price increases, and as cryptocurrencies become more and more embedded within the global financial system, and of course as Coinbase’s IPO will reach a much larger investment base, investors need to expect more government scrutiny.
Naturally, governments, central banks and regulators will be keen to protect the currency status quo.
Indeed, in my view, increased crypto regulation is unavoidable.
Although, Bitcoin investors should not be put off by the potential increased government scrutiny.
Huge crypto crackdowns are unlikely as digital currencies are increasingly regarded as the future of money, even by traditionalists.
Proportionate regulation should be encouraged. It would help to protect investors, strengthen the market, tackle criminality and reduce the chance of disrupting global financial stability, as well as offering a possible economic boost over the long-term to those countries which introduce it.
The Coinbase IPO underlines how cryptocurrencies, in some form or another, are going nowhere. And the market will only grow.
As such, investors should be aware that heightened regulation is set to become a higher priority.
Nigel Green is CEO and founder of deVere Group, one of the world’s largest independent financial advisory and fintech organisations.
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