The current condition in the cryptocurrency market may be acting as a catalyst that ignites negative comments about the industry. The CEO of the top asset manager in Europe, Allianz Global Investors has suggested that the regulators in Europe make cryptocurrencies illegal. This was during a conference in London. Addressing the head of Financial Conduct Authority in Britain, Andrew Bailey, Andreas Utermann said:
“Cryptocurrency should be outlawed. I am surprised that regulators haven’t put in more effort in the industry.”
Will Cryptocurrencies Be Outlawed?
There are many anti-crypto public figures in the world today. This isn’t the first time one of them is suggesting that cryptocurrencies should be banned. During a global forum hosted by G20 governments a while ago, the 20 largest economies in the world agreed that cryptocurrencies will be regulated but not banned. They said that the goal is to ensure that coins aren’t being used to fund criminal activities. Part of what they said was as follows:
“Cryptocurrencies will be regulated for anti-money laundering and to counter funding terrorism in accordance with the FATF standards. We will also give consideration to other responses needed.”
If the G20 takes the lead in regulating cryptocurrencies, many other governments will follow suit rather than outrightly Ban these assets. The truth is that if a government decides to ban cryptocurrencies, institutions and individuals can continue using them leaving the governments in the dark. If these governments build a standard framework for cryptocurrencies and related businesses, they will benefit from taxes and criminal crackdowns.
Bitcoin (BTC) Price Today – BTC / USD
On the other hand, if the government decides to place a ban on cryptocurrencies, activities related to the industry will move underground and cryptocurrency crime rates will increase. This is because it is more difficult to trace peer-to-peer platforms than it is to trace and monitor regulated cryptocurrency exchanges.
Blockchain Technology Remains A Symbol Of Innovation
Right from time, cryptocurrencies and the underlying blockchain technology have served as a symbol of innovation for major economies. China, one of the fastest growing economies in the world is working on blockchain development initiatives even after it placed a strict ban on cryptocurrencies.
South Korea is one of the leaders in the cryptocurrency industry. Recently, it established that blockchain technology is one of the pillars of the 4th industrial revolution. The country claims that blockchain technology has helped it groom young talent.
Large economies aren’t the only ones benefiting from blockchain technology. Smaller ones like Singapore, Malta and Switzerland are also incentivizing major businesses to invest in emerging technologies like cryptocurrencies.
The bottom line is that even if governments want to outlaw cryptocurrencies, it would be difficult, if not impossible, to do so properly. The government has nothing to benefit from doing so. So, the chances of any government in Europe banning cryptocurrencies entirely are slim.
Big Time Players Continue To Invest
Even as some financial institutions demand for a ban of cryptocurrencies, big time players like Goldman Sachs, Nasdaq, ICE, NYSE, and Fidelity have recently invested in the industry. These financial giants have put custody solutions in place to attract institutional investors.
The best thing for governments to do is to create a clear regulatory framework for cryptocurrencies so that they can curb criminal activities that take place on the industry. This is especially important because many retail and big time investors have suffered losses in the industry. Earlier in the year, Deutsche and Danske bank were victims of money laundering scandals that cost them more than the value of the entire cryptocurrency market.