The need to strengthen regulationand supervision of stablecoins and other crypto-assets, has come to the forefront after recent turmoil in markets have showed weaknesses and volatility that regulators are getting increasingly concerned about.
Regulators have started to scrutinise whether Stablecoin or Central Bank Digital Currency (CBDC) should be the way to go. With speculation growing about the long-term future for Bitcoin and its rivals, has the crypto bubble burst - and what's next for this once-promising sector?
While the international regulatory community is actively engaged in discussions around crypto assets, approaches are varied and often only partially address potential risks. There have been concerted efforts by policy makers in the U.S. and Europe, with Hong Kong and Singapore also tightening up rules to govern and ensure stability of digital assets.
Cryptocurrency regulation can be a hot button topic, but plenty of experts say it's actually a good thing for investors and the industry.
More regulation could mean more stability in a notoriously volatile crypto market. It also has the potential to protect long-term investors, prevent fraudulent activity within the crypto ecosystem, and provide clear guidance to allow companies to innovate in the crypto economy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
