The trending topic in the world of crypto currencies revolves around regulations, especially at a time when governments are clamping down on crypto currency activities across the globe. According to the head of the Chief Investment Office of Deutsche Bank, Markus Mueller, the required crypto currency governance regulations that could decriminalize crypto currency investments are likely to be realized in the next five to ten years.
Currently, most investors in the cryptocurrency industry are banking on speculations to make money, a practice that is being fiercely fought by regulators due to its volatile nature. According to an earlier interview with Bloomberg, Mueller said urged crypto currency businesses to work closely with regulators. At the same time, he cautioned against speculative investments witnessed in the industry.
His forecast comes at a time when global regulators are moving with speed to control thge growing industry. Most regulators have maintained that crypto currency trading is volatile and risky, warning investors that they could lose their investments. The South Korean government, for instance became the first regulator to put into place regulations that will govern crypto currency trading, with an aim of tackling anonymous trading and money laundering. The new regulations, which came into force January 30, are expected to bring legitimacy to the Korean crypto currency market.
Mueller said that governance regulations will be significant because they will legitimize crypto currency operations. “When the regulations come into place, crypto currencies could be evaluated like any other established asset class,” he said. The bank has in the past viewed the crypto currency market as bearish, cautioning against Bitcoin’s massive fall in price in December. The regulation debate made a comeback in the wake of a $530 million crypto currency heist involving Japan’s crypto currency exchange, Coincheck.
According to Deutsche Bank analyst Masao Muraki, investors were gaining interest on more risky assets like Bitcoin because of lack of volatility of traditional stocks. He further noted that institutional investors were carefully watching crypto currencies to establish their sustainability as a risk frontier.
Unlike other European countries which are keen on clamping down crypto currency activity at the consumer level, Germany has maintained an easy stance on the regulation front.
Unlike other European countries which are keen on clamping down crypto currency activity at the consumer level, Germany has maintained an easy stance on the regulation front.
