The idea of regulation has become somewhat of an unwanted probability within cryptocurrency circles. As a result, crypto prices could freefall just on rumours of large-scale regulatory moves. The philosophy of decentralisation and cutting the middleman—such as governments and banks—out of financial transactions is at the core of crypto culture, as it will permit individuals to manage their money without anyone watching.
On the other side of crypto regulation, there are hidden risks that many investors don’t contemplate. For example, if your savings are put into an interest-earning crypto platform, how certain are you that your cash is protected? What happens if the platform goes bankrupt? These are things regulation could address. Regulation means protection for retail investors against these types of issues. It also makes it easier for institutional investors to protect against worries of anti-money laundering risks, as they must follow strict compliance rules. With additional regulatory protection, more novice investors may be encouraged to dip their toes into the crypto waters and help the industry grow further.
