People fear regulation. It’s only natural, conjuring images of men in grey suits and wrought-iron bars. As for regulation in crypto? Well, ‘That contradicts the very notion of decentralization, does it not?’
But does it really? In truth, if you want crypto to become part of everyday life (and let’s face it, if you’re here, you likely do), reasonable and responsible oversight is the only way to make that so.
Because mainstream players cannot join the industry if would-be regulators cannot offer a degree of protection — and thankfully, despite the landscape remaining fragmented, there are signs we’ve hit a regulatory inflection point.
Allow us to explain.
A Global Framework Is Emerging
In the last eighteen months, the International Monetary Fund has put forward an analysis of the risks and potential uses of digital money.
On the one hand, the IMF cites liquidity, default, market, and foreign exchange risks as of primary concern. But on the other, it suggests that central banks could help rebalance risk with reward, paving the path to unprecedented financial innovation.
And that’s why you should feel positive about regulation.
Because provided regulators don’t try to sideline crypto, their efforts could open up the market to more participants — which could, in turn, spur innovation at a rate unlike anything we’ve seen to-date.
Local Regulators Offer Increasing Clarity
But some countries have made more progress on this front. Take Switzerland as a shining example.
Its government has laid the foundations for an innovation-friendly framework that will help crypto companies, including Elitium, push groundbreaking projects forward. That said, even Switzerland hasn’t covered everything.
The industry still longs for clarity around taxes on profits, investment classifications, and the implications of using crypto as a payment method: each of which could further clear the path for innovation.
And the clearer the path becomes, the more likely private and corporate investors will enter the fray. Because a robust legal framework will help them understand the risks.
And it’s only at this point they can devise a strategy.
Only then can they invest.
Here’s How Elitium Keeps Up With Regulation
You can see Elitium is a proponent of regulation.
We choose jurisdictions that offer clarity because doing so gives us — and our clients — every confidence that we’re operating within the bounds of the law.
That’s why we have an HQ in Gibraltar and are getting licensed in Estonia. And we also have several key partnerships that underpin us further.
These steps ensure compliance, and compliance enables longevity.
Track which licenses Elitium has: check the Elitium company page.