Since 2018, the price of Bitcoin (BTC) has fallen significantly. The last serious fall happened in November after the BCH fork war. As expected, the entire cryptocurrency market suffered significant losses as well. The total market capitalization fell from $200 to $100 and risked falling below the $100 mark. Many anti-crypto experts in the financial industry mocked those who still believe in Bitcoin even with the cryptocurrency winter.
Bitcoin Continues To See Development Amid The Bear Market
Bitcoin Continues To See Development Amid The Bear Market
Even if many speculators sold their Bitcoin awaiting the next bull run, there are still those who are bullish about the flagship cryptocurrency. Recently, Marcus Hughes, the United Kingdom lead counsel for Coinbase said that Bitcoin will experience big changes this year per regulation. In his words:
“In one or two years, we are going to see big developments. Regulations will become more defined in Europe this year.”
This comment isn’t unfounded. The Financial Conduct Authority that oversees the U.K’s large banking industry is currently carrying out consultations that may lead to the ban of cryptocurrency based derivatives. The government declared that it is ready to give the FCA full power to oversee all digital assets. Already, the FCA is carrying out investigations on 18 companies over the use of cryptocurrencies.
This comment isn’t unfounded. The Financial Conduct Authority that oversees the U.K’s large banking industry is currently carrying out consultations that may lead to the ban of cryptocurrency based derivatives. The government declared that it is ready to give the FCA full power to oversee all digital assets. Already, the FCA is carrying out investigations on 18 companies over the use of cryptocurrencies.
Bitcoin (BTC) Price Today – BTC / USD
| Name | Price | 24H % |
|---|---|---|
 | $0.00 | -0.15% |
In other news, the European Banking Authority is calling for standardized cryptocurrency regulations within the EU. The idea is to protect cryptocurrency investors while eliminating the regulatory arbitrage in these regions. Regarding this, Hughes said:
“We may end up with the EU member states that are creating cryptocurrency laws. It’s possible that we will get a unified approach in Europe. This would make life a lot easier for companies like Coinbase. Morgan Stanley executives believe that Bitcoin has staying power so they don’t think it will go anywhere anytime soon.”
Since it reached its all-time-high of almost $20,000, the price of Bitcoin has fallen by almost 80%. During the bull run, experts made predictions for Bitcoin that didn’t happen. Some said BTC will trade as high as $50,000 by the end of 2018. However, BTC closed for the year struggling to stay above $3000. Regarding how Coinbase views Bitcoin, Hughes said:
“Coinbase looks at Bitcoin and the entire cryptocurrency market long-term even if we are a little concerned about the price now. We are eager to move past this speculation stage to the utility phase. When it gets to this stage, Bitcoin will gain more adoption and become more understood.”
Even as the price of Bitcoin falls, some multinational banks are still willing to start dealing with cryptocurrencies. The only thing holding them back is the lack of regulatory clarity in the market. Hughes concluded:
“Many banks have tried to dip their toes but its not something that will happen overnight. I believe regulatory clarity will entice them a lot. Regulations regarding custody offerings will be the most visible effect. These things take time. I’ll be surprised if executives of traditional financial services firms don’t move into the industry. As the cryptocurrency industry matures and becomes more regulated, it would need the services of these executives to manage it.”
Do you think a clear regulatory framework will be a good or bad thing in the cryptocurrency industry?
