The cryptocurrency world is evolving almost on a daily basis. Even though market prices have been extremely volatile over the past few weeks, Bitcoin has demonstrated its long-term value among investors.
According to PWC, the cryptocurrency market “will develop at a pace set by the key participants”.
Stakeholders Playing Their Parts
PWC believes that the value of the cryptocurrency market is inherently built on top of the integrity of the cryptographic technology that underlies the entire industry. In the view of PWC, cryptocurrency market development will be characterized by “likely growth spurts of legitimacy from one or more” of the participants in a move PWC calls, a “credentializing moment”.
For cryptocurrencies to evolve into the mainstream, it is important for merchants, consumers, tech developers and investors to play their roles.
However, the big question that concerns most stakeholders in the cryptocurrency space is regulation. How can the crypto market be regulated to enable safety of investors’ funds?
Japan Offering a Regulatory Framework
Japan has already demonstrated its position as a more progressive nation with a regulatory framework that has established the safe trading of cryptocurrencies. According to Mike Kayamori of Quoine, Bitcoin is already becoming much more tradeable thanks to regulations that control how money comes in and goes out.
While speaking to The Coin Rush on CNBC, Kayamori mentioned that as much as the crypto industry is evolving, regulation is evolving as well. After Japan established its position as the “first global economic powerhouse” to impose a regulatory framework on the industry, Kayamori mentioned that they are now evolving that framework to meet the pace at which the crypto industry is growing.
Obviously, regulation has been the main pressure point for Bitcoin throughout the year. However, another pressing issue that has affected the price of Bitcoin is liquidity.
While speaking to CNBC, Kayamori was asked about his opinion with regards to Quoine’s approach to market volatility, considering low liquidity.
In his response, he said that “two years ago there was no such thing as ICO, there was only Bitcoin and few others”.
There has been a proliferation of tokens and currencies that need to be exchanged at a regular exchange.
According to him, Japan stands to gain as the central point that will offer liquidity and regulation for cryptocurrency transactions.
Image Credit: CNBC