KEYNOTES
COINBASE, one of the largest Cryptocurrency Exchanges in the world, made a risk disclosure during its quarterly report. They made it known to their customer that the Court could treat the customer's assets as Coinbase assets during a bankruptcy filing.
On May 19 and May 20, Finance ministers and central bank governors from the Group of Seven (G7) industrialized nations met in Germany where they discussed a tougher crypto regulation due to the recent Terra ecosystem collapse.
In light of the recent collapse of one of the most popular ecosystems in the Crypto world, Terra, and the present risk disclosure by coinbase, there is a rising call for tougher regulation of the crypto market. Presently, The US government is on a plan to intervene on behalf of their customers due to the recent Coinbase disclosure. Their goal is to protect both the citizens and the fiat system.
The Terra collapse already has placed a lot of people at a loss amounting to hundreds and millions of dollars. Some were using UST for their retirement savings while others used it to save their crypto profit.
The ongoing regulation will try to draw a line between stable coins backed by Fiat and those backed by algorithms. It will go further to place measures that will protect fiat currency from the adverse effects of cryptocurrency. If these regulations are put in place, it may lead to the government being aware of its citizens' crypto assets, especially assets within a centralized exchange. They will achieve this by imposing regulatory measures on exchanges that wish to operate in the country.
For me, these regulations may not necessarily be bad, we need them. Terra collapsed because its modus operandi wasn't scrutinized by regulators. Again, a similar collapse won't lead to more harm if there are regulatory measures in place. My joy is that we have out-grown the period where we fear a possible crypto ban. Cryptocurrency has come to stay. We can see it with what El Salvador is doing; they didn't just adopt it as legal tender but are currently in meetings with more than 44 countries over Bitcoin adoption.
One thing I am very certain of is that crypto global adoption will come. It might not be in the next three to five years but we will certainly have a crypto world.
The image is gotten from here, edited on Canva.
