Will regulation kill the crypto hype?

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Virtual discussions throughout the webinar explored the future of cryptocurrencies. The panel examined how regulations could make or break private cryptocurrencies, if national regulators are willing and able to collaborate on a global crypto framework and the greatest risks crypto markets pose to the global financial system. The full webinar is available to watch on demand.

The rapid rise of crypto

With the emergence of bitcoin in 2009 – the first decentralized cryptocurrency – many more have been created since then and at a steady pace as well. Now, the number of different crypto-currencies available is in the thousands. Much is still unknown about the future of crypto, but what is clear is that digital currencies are changing and evolving rapidly.

Rules and guidelines developed today can quickly become obsolete. The panel suggested that to overcome these challenges, regulators will need to keep up with ephemeral technological developments in the crypto world. This is especially true with the myriad ways of viewing digital assets, such as commodities, securities, and currencies. How crypto is framed and viewed will impact the future and how it is regulated.

Sometimes it’s a commodity, sometimes it’s a currency and sometimes it’s a security. We have to adapt to this novelty which is driven by technology.

Yoni Assia CEO and co-founder, eToro

Balancing the global market

During the webinar, expert speakers explained that the global perspective on crypto regulation is evolving and entering a pivotal phase. Currently, there are few clear frameworks and financial regulators are expressing their concerns. The panel of speakers stressed that a balance must be struck between creating a global marketplace, allowing financial freedom and aligning crypto with local laws and regulations. On the other hand, balancing the world market means building governance as well as ensuring that these regulations still allow growth, innovation and the maintenance of high standards.

Staking is just the crypto vernacular for a loan product, but I don’t want to call it a loan product because then maybe it could fall into regulatory space.

Ian TaylorExecutive Director, Crypto UK

Experts in the crypto world predict that cryptocurrencies will overtake cash and if so, regulations will need to be implemented quickly. Giles Keating sits on the Board of Directors of Bitcoin Suisse AG and participated in the webinar panel discussion. He emphasizes that “regulation is needed very quickly. People will start to use them like money. As transaction costs go down, they will really take over from day-to-day debit cards or Apple Pay.

Crypto integrating into mainstream markets

Understanding this, the way crypto players operate today is very different from traditional banks and even that alone is changing the nature of reporting on it. The webinar panel pointed out that there are fluctuating levels of reliability in crypto reporting sources compared to the more traditional way of reporting banking transactions. An example of this – highlighted in the webinar – is that unlike old school banking, crypto players have a reputation for engaging in intense debates on Twitter with regulators. This is unconventional compared to the way financial services organizations used to work.

A $ 2 trillion market that emerged out of nowhere, on a global scale, by the people for the people. A very romanticized and democratized vision of the markets. A few bad actors in some places, but a lot of positive innovations, and ultimately it’s really about financial freedom.

Yoni Assia CEO and co-founder of eToro

Relive the full discussion by watching the on-demand webinar.

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