That Time Again?
News out of Turkey today marks a fresh focus on regulation. Much of the news within the Cryptocurrency space has been predominantly focused on adoption and inclusion since Trump took office. However, one had to expect that the regulatory issue would again resurface at some stage. The Capital Markets Board of Turkey has cited the offering of “unauthorized” services as the reason behind the ban.
However, there has been little clarity provided at this stage as to how this verdict was reached. Regulatory issues in the Crypto space have a history of being somewhat vague, so additional clarity will go a long way in providing clarity and a path forward for compliance. Regulation is a temperature switch that regulators and governments can easily turn, making it an ongoing concern.
We all know that Crypto is here to stay, but how it stays depends a lot on the powers that be. This is a reality that many are still trying to ignore by opting for non-KYC platforms. However, exchanges will all eventually need to become compliant. More minor and more obscure platforms get to avoid the crunch a little longer, as regulators always go after the big fish first, which makes sense.
Crypto & The TradFi Amalgamation
The merging and amalgamation of Crypto and traditional finance (TradFi) is an idea that I have been exploring for years. Essentially, Crypto will be part of a new brand of TradFi, resulting from the union of these two expressions of finance under a new and comprehensive banner of TradFi. The two will soon no longer be seen as separate entities. In many ways, this is already occurring in many parts of the economy and the world at large.
In a world where Crypto becomes part of a new standard, regulation is an obvious route. Crypto enthusiasts who choose to ignore this reality are only postponing the inevitable. Hopefully, the implementation is moderate and at an acceptable pace and level. As we saw with the previous administration, excessive and unreasonable policies can be incredibly harmful and damaging to healthy development and adoption.
A strong stance from a single country or jurisdiction often sparks a similar response from other jurisdictions. It will be interesting to see how far this development from Turkish regulators will go. Interestingly, a strong stance on regulation within the next few months would likely coincide with the typical closure of a bull market cycle. Such a move could trigger the onset of a bearish season towards the end of the year.
As I say, how far this move and subsequent moves that may come will reach will reveal a lot regarding this possibility. However, for now, it’s business as usual. I have envisioned somewhat softer bear markets for Bitcoin in the future. However, an overbearing stance regarding regulation could trigger a typical Crypto Winter.
Final Thoughts
As Crypto advocates, we don’t embrace regulation, but we do understand the need for its implementation. What has always been required regarding regulation is a healthy balance. By simultaneously appeasing regulators and not overburdening Crypto users, everyone wins. This has been the prevailing narrative among key industry players for some time now. Hopefully, that’s how it unfolds. Catch you next time!
Disclaimer
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This article was first published on Sapphire Crypto.