Regulation of cryptocurrencies should not lead to a wave of bans

There are market players who are trying to profit from the regulation of digital money.

At the beginning of July, negotiators from the European Parliament, the European Council of Ministers and the European Commission agreed on the MiCA, i.e. European Union directives related to the market for cryptocurrency assets and the provision of crypto-services. Its regulatory framework covers issuers of unhedged cryptoassets, as well as so-called stablecoins that are pegged to the US dollar, a basket of currencies or other assets. Trading venues and virtual wallets in which cryptocurrencies are held are also included in the regulation. The European Banking Authority must supervise the issuers of stablecoins, which – if they operate on the European market – must also maintain an EU presence. The authority must maintain a public register of non-compliant cryptocurrency securities providers.

Digital currencies have been around for more than a decade, yet institutions around the world struggle to develop guidelines for them. Ulli Spankowski consciously subjected himself to strict regulations Bison for a crypto trading platform. Bison, which has been available for three years, is the first service of its kind backed by a traditional financial institution, the Stuttgart Stock Exchange. “Regulation creates trust. When I took my first steps in the crypto environment, I knew that my money would be in a bank outside of Europe whose name I can’t even pronounce correctly. You could only invest 20-30 euros there. On the other hand, a well-known in the case of an institution like the Stuttgart Stock Exchange, the situation is completely different. I am not afraid that an institution with 160 years of tradition would do anything that would attract negative attention” – he stated the businessman.

For those who want to invest 50 euros in crypto, there are many platforms. But if we want to invest thousands of euros, we think very carefully about which partner we choose. The founder of Bison added that the entire crypto industry has developed completely unregulated. They just had to figure out what conditions apply to whom, how long it would take for the crypto to get from A to B – they had to think through these complex questions. And this has nothing to do with the legislation: however, a traditional financial service provider is only open from Monday to Friday, from 8 am to 10 pm. They had to explain to the stock exchange that this is not how it works and that they have to set the project to 24/7. It was a huge debate in the beginning.

According to Ulli Spankowski, a healthy level of regulation is the key to success. “In 2020, the crypto deposit license was introduced in Germany. The traditional financial service providers, who had hardly dealt with cryptocurrency before, said: the supervisory authority provides the framework conditions, now we can get down to business. But the regulation must not turn into an orgy of bans. 2016 and 2017 I often attended crypto conferences. People asked me what the biggest problem with bitcoin was. My answer was that no one cared. It was simply too complicated for the mass market to invest in crypto. 99 percent of people are not afraid of their banks and accepts products recommended by administrators. Crypto regulation is there to prevent excessive abuse. It is no different in the defi sector. Everything that happened with Terra/Luna was pure market manipulation. In the classic financial business, those who responsible, they would be charged. But now there are no rules to punish that.”

“Banning cryptocurrencies would be impossible, because we already live most of our lives on the Internet. At the same time, I do not believe in the monopoly of bitcoin. Bitcoin has the right to exist, but a lot will happen to altcoins. Just think of the automotive industry: if it can be heated in my new car I have sessions and I only have to pay for it when I turn it on, this can also be solved via the blockchain. In the case of any pay-as-you-go payment, there are a lot of intermediary providers in the value chain. I think that in such cases, by reducing intermediaries – for example, smart contracts – you can make a profit,” emphasized the manager.

The businessman finally stated that their trading activity is similar to that of other stock exchanges, although it is much less busy now. According to him, it was understood in the European Union that crypto and blockchain technologies should not be regulated to death. If the crypto sector does not have a 2008 economic crisis, it will have innovative regulation.


Source: SG.hu Hírmagazin – IT/Tech by sg.hu.

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