Ryan Rabaglia, head trader at digital asset brokerage firm Octagon Strategy, told CNBC in an interview that the company still believes that Bitcoin will be extremely successful in the future. He said that people must remember what cryptocurrencies used to be; and how they increased in value gradually. Ryan added that the crypto market is still in “a growth phase” and that people need to understand that it is only eight years old.
The Financial Services Authority (FSA) of Japan recently sent business improvement orders to crypto exchanges including Bit Bank, bitFlyer, QUOINE, BTC Box, Bit Point and Tech Bureau.The agency also inspected other platforms in order to ensure that a hack similar to Coincheck could be avoided in the future.
Such stricter regulations, along with another case of stolen cryptocurrencies from South Korean crypto exchange Bithumb, have resulted in a price decline in Bitcoin, Ethereum and other crypto tokens. When asked about these events, Ryan said, “The regulatory stance of the industry, I sort of look at it as, a double edged sword. The uncertainty that’s driven around this regulation is what gives pressure to this market, and drives it further down.”
However, Ryan explained that regulations will also cause cryptocurrencies to increase in value. People from different industries will be able to enter the market due to the protection provided by regulations in the coming years.
Yesterday, the European Parliament also published a report on cryptocurrencies, which stated they were not a threat to central bank or sovereign currencies. The analysis explained that the transparent and secure nature of crypto transactions was extremely useful worldwide. Additionally, it was written that regulatory bodies should refrain from ignoring and / or banning cryptocurrencies completely.
Meanwhile, the crypto market continues to decline in value, with majority of the top 10 cryptocurrencies taking a dive in the last 24 hours. At the time of writing, Bitcoin, Ethereum and Ripple are valued at $6,359, $451 and $0.456 respectively.
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