Fintech companies argue for regulation of crypto markets
In a sign of the times, as digital currencies nose dive from highs hit a year ago, greater number of cryptocurrency players are calling for the cavalry in the form of regulation highlights a recent article in Bloomberg.
A new-found enthusiasm for regulation by cryptocurrency entrepreneurs is possibly stimulated by the despondent state of the market which has seen some savage swings this year even given its known volatility. Market sentiment for much of this year has been negative.
Many players see the lack of regulatory control as a contributor to market malaise and want it regulated like any other asset class and “shed its image as a lawless underworld”.
Regulatory touch but keep it light?
Daniel Santos, ex Standard Chartered banker, now running a Singapore-based ratings company summed up succintly what those for regulation want: “The most powerful force to reverse such negative sentiment would be market regulation. If the crypto market is ever to establish itself as a credible alternative asset class, it will need a set of rules that will weed out fraudulent activity and encourage stable growth, which should attract the deep pockets of institutional investors.”
Back in June this year, Naeem Aslam, chief market analyst, Think Markets considers hacking of major exchanges and the downturn related and expressed frustration: “After every few months, we are seeing the same pattern emerging. This is the result of loose regulatory control and regulators must step in to protect the consumers. Anyone who wants to do with anything with exchanges should be forced to adopt high-grade security and regular security upgrades.”
Recently, a group of San Francsico-based fintech companies have banded together in a coalition called Securing America’s Internet of Value Coalition to lobby lawmakers and regulators on Capitol Hill. Fittingly they plan to pay their lobbyists partly in digital coins. The group is looking for regulation that encourages innovation and doesn’t damage competition.