Week of Crypto-Regulations: Governments in the US, China and India Take Heed
Week of Crypto-Regulations: Governments in the US, China and India Take HeedImage Source: Shutterstock
The past week saw a lot of progress made by the authorities in relation to Bitcoin and cryptocurrencies. Libra announcement by Facebook last month gave the impetus to Governments all around the world to finally take immediate notice of the matter.
Cryptocurrencies could be regulated as an asset, commodity, currency or even financial security in some cases. Bitcoin began a new age of digital asset which is not yet defined by the laws of Governments. Subsequently, after Bitcoins popularity began to increase a lot of other Bitcoin or altcoins were released. This made matters worse for the authorities trying to regulate these new asset types.
The total market capitalization of the cryptocurrency markets is close to $290 billion. Over the past decade, it has been exploited for a number of illicit activities. However, the benefits and the belief around cryptocurrency, especially Bitcoin, is starting to outweigh the flaws.
The United States of America and China are two of the worlds biggest economies and the biggest contributors to the crypto-market. China with its mining ecosystem, and the US with its projects and investors.
The Governments of both these countries including India for long have tried to curb the illicit activities around cryptocurrencies through warnings. However, this week they made progress in promoting it.
The US Senate Holds Discussions on Libra, Bitcoin, and Crypto
The US Senate Hearing on the 16th and 17th of July marked a historic moment for Bitcoin and cryptocurrencies. Two Houses of the US Senate – The Banking, Housing, and Urban Affairs Committee and the Financial Committee addressed the issue profoundly.
While it did not end well for Facebooks plans, it was a big win for Bitcoin and some cryptocurrencies. Both the committees grilled Facebooks head over their plans were in agreement to disapprove it.
David Marcus, Head of Libra Association
Nevertheless, David Marcus, the head of the Libra Association and Facebooks representative at the hearing was still optimistic. He suggested that the announcement was made prior to the launch to address these concerns at their very best.
Some of the positives for crypto-markets involved a strong understanding of cryptocurrencies. Also, a number of US Congressmen and women who were recognized were actually in favor of cryptocurrency. Senator Patrick McHenry concluded the session by saying,
Due to the nature of the technology of Bitcoin, Governments cannot kill it, nor should they and you cant kill digital currencies broadly.
Anthony Pompliano, t ...