2018 marked the beginning of crypto regulations in different parts of the world. In reality, this is really needed by the industry. And though the market has dropped the value of Bitcoin and other altcoins, it is true that regulatory clarity is needed if the industry wants institutional investors to enter.
However, a problem is that countries have different reactions to cryptocurrencies. China, for instance, was among the very first to ban crypto-related activities in the country. Experts believe that it is fear of capital outflow and cryptocurrencies’ volatility that concerned its regulators.
European Parliament recently released a report saying that it’s a mistake for countries to completely ban cryptocurrencies. Instead, the industry should be regulated. In Europe, there are countries that aren’t open to the crypto industry. Holland’s Rabobank as well as Polish banks have been under fire for their stand when it comes to crypto-related businesses.
Bat Sign on Slovak Banks
As a form of protest, banks in Slovakia including its central bank have been shown with a black-and-white Batman logo of Bitcoin and Monero. this takes aim towards the decision of local banks to remain hostile towards crypto-related businesses.
The group that was responsible for this protest was the Czech crypto group Paraleni Polis. It is a Bartislava-based group that is known to own a number of cafes and crypto hubs. The group is also known for operating the Cryptoanarchy Institute.
According to the group, “Slovak banks, instead of embracing the unlimited possibilities of cryptocurrencies and supporting the emerging crypto companies, due to state regulators or unclear legislations remain in the darkness”. In addition to this, the post also mentioned that “A witch hunt for crypto companies and blocking transactions to crypto exchanges continue. The (en)light(enment) to banks is an attempt to overcome the darkness, which like in the 15th century, prevented revolutionary book technology to establish, now in the 21st century, is threatening the rise of a new decentralized era”.
European Countries Going Developing the Crypto Industry
Though Slovakia is slow in adopting crypto technology, it is the complete opposite for other Eastern European countries. In Slovenia, a Bitcoin monument was made by the local government of Kranj in partnership with other fintech startups and Bitstamp.
The same is also happening in Ukraine as a statue of Bitcoin creator Satoshi Nakamoto is planned to be erected in Kiev. The statue will be placed in the same spot where Vladimir Lenin’s monument once stood before it was torn down by protestors during the 2014 Ukranian revolution.
Regulatory Changes Should Happen
Regulators should embrace the reality that more and more people are using cryptocurrencies. One of the most important things that regulators need to address is how to protect investors. This can be done with the help of regulations that address pertinent issues in the industry.
The US Securities and Exchange Commission for instance finally considered both Bitcoin and Ethereum not as securities. This means a lot considering that it has clarified that both Bitcoin and Ethereum shouldn’t follow the rules applied on investment vehicles such as stocks and bonds.