Regulation on bitcoin to widen acceptance


The regulations of cryptocurrency bitcoin will widen more acceptance towards the digital coin currency, says an analyst.

Global Data plc lead financial analyst Siddharth Agarwal said in a statement yesterday that the regulations of legalising bitcoin and other cryptocurrencies will bring them closer to national currencies, hence leading to even wider acceptance.

“Bitcoin prices have already quadrupled since January 2017, with a single bitcoin surging from a value of US$1,000 (RM4,233.50) in January to US$2,784 in July, and finally to US$4,760 in August, almost 70% increase between the last two months,” he said.

“As the regulatory environment is now stabilising, we will see massive growth in startups dealing with bitcoin and other cryptocurrencies,” he said, noting that recent measures by governments in some Asian countries to regulate bitcoin exchanges seem to have had little detrimental impact on its price.

The statement further said the increasing regulation is intended to check money laundering, terrorism financing and other illegal activities by discouraging the use of bitcoin purely for the anonymity it offers.

The regulation is also expected to have a positive impact on the fledgling cryptocurrency industry.