New Cryptocurrency Regulation Could Save The Industry: Opinion

New cryptocurrency regulation could be the savior of the entire crypto industry especially since there are now many who can’t wait what the new anti-money laundering directives will bring as we are reading now in the cryptocurrency regulation news.

Over the past couple of weeks, there have been rising anxiety amongst cryptocurrency investors of an approaching crackdown on Bitcoin (BTC) service providers. This worry does not come without any ground, at the start of 2020, European Union countries activated an anti-money laundering directive, that had an article that indicated that services providers which are working in the crypto sector will be required to amass more information about the customers that use cryptocurrencies.

The move of the European Union to implement this directive has already made certain damage in the cryptocurrency sector, with industry firms like Simplecoin and Bottle Pay having to close down their platforms. Many industry people were hugely dissatisfied by the closure of Bottle Pay because it gave the opportunity to customers for easy transactions of Bitcoin (BTC) through Twitter.

And more recently, the Secretary of the U.S. Treasury, Steven Mnuchin, said in a hearing held by the Senate Finance Committee that the Financial Crimes Enforcement Network (FinCEN) branch of the Treasury will soon give “significant new requirements” for entities that work with crypto. Mnuchin said in the wake of the reveal of Libra by Facebook that cryptos are a national security threat, so this move was a long time anticipated.

It is interesting to note that a top industry investor has made the suggestion that the integration of the “requirements” Mnuchin is asking for can actually be of help for Bitcoin’s growth in the long run. How Speaking with CNBC on Friday in regards to Bitcoin (BTC) and the broader crypto sphere, the incumbent CEO of Galaxy Digital and a former partner at Goldman Sachs, Mike Novogratz, said:

  “We’re going to see something from Treasury in the next few months that kind of puts some guardrails around Bitcoin. I think that’s a positive.”

It is not only Novogratz who made a suggestion that the implementation of more clear and stringent cryptocurrency regulation rules against cryptos can, in turn, help Bitcoin (BTC). The Democratic presidential candidate, Andrew Yang, that just recently dropped out of the race because of a poor showing in two primaries, stated in an interview in January with Bloomberg that the implementation of clear rules in the United States can, in turn, fuel innovation.