Another BRICS country acts against cryptocurrencies
The Bitcoin value, that had rose up to 1500 percent by the end of last year, has fallen drastically since then
Cryptocurrencies suffered yet another jolt after Brazil banned funds from investing in them. The decision that comes due to concerns about the legality of cryptocurrency based transactions puts a question mark over their future.
As per a report by Reuters, Comissão de Valores Mobiliários (CVM), the South American nation’s market regulator stated that the cryptocurrencies cannot be considered as financial assets and hence placed legal restrictions against the use of funds.
“The interpretation of this technical division is that cryptocurrencies cannot be qualified financial assets … and for this reason this their direct acquisition by investment funds … is not permitted,” stated a CVM circular that was quoted in the report.
While the initial ruling may not directly affect those who want to invest in cryptocurrencies using foreign funds, it nonetheless highlights the global trend that is seeing rising skepticism and opposition towards cryptocurrency trading. Regulators across the globe are taking steps to bring a check on cryptocurrencies with South Korea on the verge of banning cryptocurrencies as a whole.
While the unregulated and uncontrolled characteristics of the cryptocurrencies are a cause of concern, the unpredicted fluctuation of the value of Bitcoin has also raised concerns.
The value of Bitcoin, that rose up to 1500 percent by the end of last year, has fallen drastically since then. Concerns of virtual currencies like Bitcoin being nothing but a bubble were further aggravated when popular investor Warren Buffet opined that cryptocurrencies are heading towards a disaster as they will come to a bad ending. "I can say with almost certainty that they will come to a bad ending," he was quoted as saying.
It will be crucial for the future of cryptocurrencies how other countries react to these developments. If regulatory authorities across the globe follow suit it may well be disastrous for the future of virtual currencies.
The crypto world is crazy right now. We have nations like France trying to put down hard regulations on crypto and nations like the US that just want their piece of the pie (taxes). I believe within a year, crypto will grow past the $1 Trillion market cap.
I am not sure regulation will matter once decentralized exchanges become more prevalent. The market in China has seemed to survive.
It has too become too big to be stopped and i think were gonna pass it soon if we haven't already . Itll be quite the interesting chain of events in any case dont you think
I definitely agree, If country's follow suit to sustain power in fiat currency it would be devastating. That being said the nature of bitcoin and crypto currencies alike may loose much of its value in the downfall but i would still bet that these currencies will remain whether or not governments like it. The very nature of the technology cant be stopped.Its already in circulation and there will always be a demand for untraceable currency. No one can stop me from going to someone who has bitcoin and handing them the cash for bitcoin. Im sure the regulation would cripple crypto currencies monetary value but it will still be useful and there will always be a market. You can make a hammer worthless in monetary value but it can still hammer nails. You can make crypto value drop but its use is the same. I also wouldn't mind the market going "black". That all in mind I really really hope that governments dont put such regulations cause the growth of crypto can only be good. obviously in my opinion. If all money was centralized then the world would be much more interesting.