PRESS RELEASE
After the last episodes experienced in the crypto world, many raised the importance of speeding up the times to generate a legal framework that contains this ecosystem. Those in favor of the regulations claim they could help prevent excessive volatility in the cryptocurrency market.
The lack of regulations has allowed large fluctuations in its value, which can have a negative impact on investors and market stability. With proper regulations,
measures can be put in place to prevent market manipulation and excessive volatility.
Additionally, regulations would be necessary in the crypto world
to protect investors and users, to encourage global adoption, prevent tax evasion and other financial crimes.
For this, it is important that the regulations are
clear, consistent and transparent to try to make the crypto world safe and stable in the long term.
But what are cryptocurrencies?
A cryptocurrency is a
digital asset that uses cryptography to secure ownership, transactions, control the creation of additional units, and verify the transfer of assets.
Ramiro Raposo, Country Manager of Bitwage -the pioneer platform for payment of fees in cryptocurrencies and digital dollars most chosen by workers, freelancers and service exporters-
, shared his vision:
“While cryptocurrencies are designed to be money, I consider Bitcoin to be an asset . Although it would be ideal to imagine it as a currency, I find it very difficult to implement that it be used as a currency on a daily basis. But I do see it as a way to preserve the value of our heritage as other assets such as gold have been. It has its own regulations, therefore I have no doubt that Bitcoin will follow a similar path”.
On attempts at regulations and their possibilities in Argentina
At the end of last year, the Argentine Economy Minister, Sergio Massa, held a meeting with leaders of the main crypto companies and technology firms, with the aim of “putting intelligence together to find ways for the State to make work possible in this matter to position Argentina as one of the leaders on a global scale”.
Raposo first referred to what is happening in the North American market. “A country that is always very active with the issue of regulations is the United States. Although the word regulation sounds strong and is not very welcome by holders, many of these regulations
can just protect the investor . For example, one of the regulations that is being proposed in the US Senate is to regulate stablecoins so that they are truly stable and do not put investor money at risk,” he said.
And in the case of Argentina, he argued that our country is “very particular” on the issue of regulations. “Although there is talk of regulations, it is of the utmost importance that
those who are facing this project in the government are trained and advised to understand the crypto market . Due to the history of our country, one could suspect that there is a hidden reason for collection, but since the ecosystem is much more complex and decentralized than the traditional market, they will never obtain full control over cryptocurrencies”, he highlighted.
Guillermo Escudero, Commercial Manager, of CryptoMarket -cryptocurrency exchange platform- also referred to the regulations. “As in any market, there is always state intervention to protect investors or regulatory frameworks that generate clear rules for participants, but the particularity of the crypto market is that many entities can regulate from ignorance and this is more complex. still, because each regulation can focus on different aspects”, he indicated.
“In general, in many jurisdictions, crypto companies tend to align themselves with the chambers that create the laws to be able to put together said frameworks, in order to transfer the information to said entities and that they understand the details of the crypto market. Thus, it can
be regulated in order to evolve the markets and that the advancement of technology is not harmed ”, he added.
For fintechs or projects that are concentrated in Latin America, the regulations do not yet have clear definitions, one possibility may be what CryptoMarket has already endorsed, which is to incorporate substantial improvements in the protection of its clients into its practices and processes through the determination to operate as a regulated agent in Europe. In this way, users can count on a safe environment and high standards in the financial, informational and compliance fields.
From
Koibanx -a leading company in financial tokenization using blockchain technology-
, its CEO Leo Elduayén stated: “The crypto world is going to end with two options: on the one hand there will be decentralized exchanges, non-custodial wallets and DeFi solutions, where there is a knowledgeable user who has full control of his assets. And on the other hand, there will be mass users who will choose to resort to regulated financial institutions who will integrate crypto into their value offer and offer them as one more product. Oddly enough, it will be this sector that will end up creating the space for the massive adoption of crypto. The truth is
We cannot have more exchanges like FTX or Celsius, centralized, unregulated, with bad practices where people give them control, give them their money and they do what they want without any regulation.”
Martín González, CEO and co-founder of BAG -blockchain technology company that offers tools specially designed for art and culture-, said: “The fact that technology promotes decentralization, freedom and privacy does not mean that it does not need regulations. Not to curtail those freedoms, but to put in place a consistent legal framework that allows illegal acts to be punished and that serves as an infrastructure so that highly regulated sectors such as funds, private and public banks, and individuals and legal entities of all kinds can access without being unprotected.”
The MiCa (Market in Crypto-Assets) regulations in Europe “has very interesting things, although it is still deficient since it lags far behind in issues such as NFTs. Technology is always ahead of regulation and in this industry much more. We are all waiting for how both the United States and China end up playing on the board.”
Regarding the regulatory attempts in Argentina, he opined: “I sincerely believe that they are looking for a new source of collection. But
if we really focused on promoting blockchain development in Argentina, where there is very good talent, we could be one of the most important development hubs in the industry globally.
