BTCC CEO Bobby Lee Wants Bank Regs
Head of the BTCC exchange Bobby Lee, said on CNBC’s Squawk Box that cryptocurrencies ought to be regulated. They need regulation to ameliorate the kind of price swings we’ve just witnessed.
Cryptocurrency’s total market cap has now plunged under $80 billion. Ethereum’s market cap was recently at $40 billion, but is now once again under $20 billion. And the more people who trade, the worse the situation will get according to Lee.
He said reportedly that he believes “regulation is much needed for this new asset class because otherwise it’ll run amok from society.”
Bobby Lee also commented on China’s move toward cybercurrency regulation. China has said that bitcoin in particular needs to be regulated and recently reviewed three separate Chinese exchanges trading bitcoin.
Some believed the PBOC move was aimed at reducing bitcoin trading Not Bobby Lee, who was quoted as saying, “It’s not really a crackdown. The central bank previously was not very aware of the details of how bitcoin is utilized, how bitcoin is traded.”
He said that commercial banks needed to be more involved with the trading of cryptocurrencies in China and elsewhere. “It’s a new thing the central banks should pay attention to and figure out what the rules and regulations should be.”
But one wonders if Bobby Lee wants regulation for its own sake or because banks won’t get involved without regulation. Chances are central banks in particular will not propose much serious trading without regulation.
And as was recently pointed out in these pages, the market is likely the best regulator of all. Government regulation is a kind of secondary effort that seeks control.
Regulation is a kind of price fixing. In the long run, price fixing doesn’t work. Some regulation is necessary because banks won’t become involved without it. But that doesn’t make it right nor good.
Bobby Lee could say what many in the cybercurrency community believe, that regulation is already in place, created by the market itself. But he is anxious to get more capital inflows and banks are a key to it.
He is willing to urge regulation to bring in bank money. That’s too bad. A real conversation about regulation and excessive regulation is called for.
Some regulation may be necessary because banks won’t come on board without it. But cryptocurrency execs ought not to be overly enthusiastic about making it happen.
Many of the biggest names in the business are calling for regulation but they ought to be calling for talks to decide what if any regulation is needed. Start by discussing regulation, not demanding it.
blockcitynews.com