Better cryptocurrency regulation attracts institutional investors, according to a number of market insiders. Earlier last week, media reports state that Hungarian-American investor George Soros has officially inked the Soros Fund Management’s permission slip to trade cryptocurrencies.
10 April, AtoZForex – If you follow cryptocurrency market at least from the middle of the last year, you might already know that the digital asset class has been on quite a ride. However, some of the cryptocurrency experts believe that now it might be the time cryptocurrencies will start to move steadily.
Better Cryptocurrency Regulation Attracts Institutional Investors
The movements of the last year have been largely caused by the lack of regulation in the industry. This year is expected to be the “Year of regulation”. With the development of regulations in numerous countries, the volatility of the market will eventually drop. So will the market manipulation.
Many cryptocurrency experts believe that global regulators do not intend to ban cryptocurrencies, but rather to better regulate the market. This could also help the industry to mature.
As a matter of fact, the global regulation has been so far more linked to the Initial Coin Offerings (ICOs). Some of the ICOs appear as immature Blockchain start-ups, and some of them are fraudulent. The US Securities and Exchange Commission (SEC) has put a lot of efforts into eliminating the illegal activity coming from the ICO market.
Better regulation – More big money?
With heightened regulation also comes legitimacy, which, in turn, brings the increased institutional investment.
In Asia, South Korea has apparently softened its stance in regards to the cryptocurrency trading, with Japan recognizing Bitcoin as legal tender. Some of the EU regulators also did not seem too harsh on cryptocurrency market, while the US is largely focusing on collecting crypto related tax fees.
All of these developments are seen as positive from the perspective of big institutional investors. Some of them believe that in case the cryptocurrency regulation will be more solid, large funds will be more likely to invest capital.
In fact, this has already happened. Earlier last week, media reports state that Hungarian-American investor George Soros has officially inked the Soros Fund Management’s permission slip to trade cryptocurrencies.
Other big money investors also seemed to express interest. Just like that, Venrock, the venture capital firm of the Rockefeller family, has formally signed the collaboration with cryptocurrency investment group CoinFund to invest in cryptocurrency related projects.
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