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China’s Cryptocurrency Ban a Gift to Friendlier Jurisdictions

China’s Cryptocurrency Ban a Gift to Friendlier Jurisdictions
A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration taken Dec. 8, 2017. Reuters/Benoit Tessier/Illustration
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Against all odds, cryptocurrencies have increased their market capitalization from nothing 10 years ago to over $214 billion today. However, investor concerns over government regulations are looming.
Government regulation is focusing on two broad aspects of cryptocurrencies: electricity use and traceability. For example, China is focusing on electricity use while South Korea is focusing on traceability. Further, the Fifth Anti-Money Laundering Directive from the European Union is set to focus on traceability, with new rules on how know-your-customer and anti-money-laundering regulations should be applied to cryptocurrencies.
Andrés Coronado
Andrés Coronado
Author
Andrés Coronado is a research analyst for Incrementum AG.
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