Regulators are pushing cryptocurrencies, should you be worried?The cryptocurrency market has been going through difficult times lately (
when were they different😉
?) — the price dump of most cryptocurrencies, especially tragic for altcoins, pressure from regulators, bans in China and other countries.
News background- Binance and FTX
limited max leverage to 20x.
- The limit for unverified Binance accounts was
reduced from 2 to 0.06 BTC.
- Binance US is
considering an IPO as a move to meet regulators.
- Binance is
looking for staff to interact with regulators and plans to get licenses in all countries.
- Regulators have turned their attention to stablecoins,
new rumors of a lawsuit against Tether. This is pressure on the competitor, as USDC is a much more transparent and accountable stablecoin, operating within U.S. regulatory norms, which may become CBDC.
- Uniswap has
restricted access to several assets in its interface.
Reasons- Binance is the largest crypto exchange with huge trading volumes, such a large company cannot function without attention and control of states. Regulations were a matter of time and sooner or later they will affect most centralized exchanges and large crypto projects.
- Blockchain and cryptocurrencies have fundamental value because this technology, for the first time in hundreds of years, takes away the monopoly on the issue and control of money from a centralized government and distributes this power equally to all citizens.
- Officials are sensibly assessing the risks of this financial freedom and will stifle it so that control remains in their hands. It is already impossible to completely “kill” cryptocurrencies because of how this industry is set up and how much money and users it has already attracted, so barriers in the form of verification, licensing, taxes, etc. will be put at the entrance to the world of cryptocurrencies.
- An average user, who came into crypto for the sake of easy money making and doesn’t understand what the value of free money is, will absolutely voluntarily pass any verification and will pay taxes.
Summary- Governments and officials, in partnership with large financial institutions, have far more resources for reasons of historical dominance and will use them to maintain that status.
- Despite the growth of inexperienced investors who buy shitcoins because of Ilon Musk tweets, the crypto industry still attracts the best minds of mankind and a lot of talented people are well aware of the real value of cryptocurrencies and invest their efforts in their development.
- Blockchain and cryptocurrencies in general and bitcoin in particular are a unique experiment, the results of which are not yet determined, the technology offering financial freedom is still subject to influence and control.
- The industry today is already much more regulated than just a couple of years ago and the trend will continue to grow, but while there is still room for financial freedom and the DeFi boom, which although not 100% decentralized, is much more free than the already regulated CEX gives us a temporary advantage.
It is difficult to predict the outcome of the battle between blockchain and financial freedom versus government control, but the trend is clear — the industry is becoming a regular speculative market to make money. Large companies are going along with the regulators themselves, and most users have nothing against it.
It is likely that the crypto market will follow the path of the Internet, where the average user rarely leaves the ecosystem of a few large IT companies that fully control their environment (Facebook, Twitter, Google, Instagram, YouTube), and some users have gone into darknet, which is not only used for fraud.
This pattern is already formed, user comes to conditional Binance due to advertising and bonuses, immediately gets verified to participate in drops, then trades exclusively on this platform (remember spam “when binance?” in any cryptocommunity). In case the user wants to play with farms and DeFi he will be provided with a convenient BSC, controlled by Binance, which is already controlled by regulators.
Despite this sad trend, we truly believe in blockchain technology and cryptocurrencies. It is an amazing technology that has a number of significant advantages (limited issuance, no control over transactions, convenience and affordable financial instruments, security) over traditional money and these advantages cannot be stifled completely.
Fiat is a bubble, so keep #HODL 🚀Original Article:
https://link.medium.com/GGuaQIPRfib
