It is expected that 2018 will be the year of blockchain technology. Meantime, there will be some growing barriers for the startups because of the cryptocurrency enforcement.
In the year 2017, we have been observed considerable speculation about cryptocurrencies. Along with other virtual currencies, Bitcoin almost reached the top with the price of $19,000. However, its market behavior has captured the attention of government officials. Due to its raising enthusiasm among people, countries across the world initiated to regulate cryptocurrency trading.
As a result, China and South Korea were the first countries to regulate the cryptocurrency trading. China took the fundamental approach and outlawed the use cryptocurrency trading. On the other hand, South Korea issued a regulation that expelled anonymous trading of cryptocurrencies.
Romen Guelfi-Gibbs, CEO of Pinnacle Brilliance said,
“Crypto has long been the home of rebels, anarchists, and libertarians. Of course as crypto is gaining notoriety, it was to attract investors and mass public interest. When the public involving, and market cap reaches a certain amount, the government always steps in under the banner of looking out for consumers and fighting criminal behavior”.
For most of the crypto players, it is essential to legitimize the cryptocurrency and make it more convenient and safe for the investors.
CEO of WealthMan, Andrei Huseu says,
“As a result of this, cryptocurrencies will receive more recognition. Interest in cryptocurrency will increase. At the same time, the regulatory norms regarding enforcement will not be effective because of the inability of the judicial system to make changes to the blockchain-based registry”.
The enforcement will shelter investors from the illicit activities and scams.
The crypto startups would experience adversities because of the uncertainty involved with regulation.
Dr. John Mathews, Chief Finance Officer, Bitnation, noted that
“In the short term, regulation creates a more difficult business environment, as service providers decline to work with crypto startups due to uncertainty and a perceived threat of imminent and restrictive regulation”.