View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 18, 2018

EU markets watchdog stands guard as cryptocurrency concerns grow

Which side of the argument are you on? You are either a cryptocurrency believer or a sceptic.

By Tom Ball

The trading of cryptocurrency including Bitcoin and Ethereum may be clamped down on by The European Securities and Markets Authority (Esma) in the interest of safeguarding amateur investors.

Regulations have been emplaced in other parts of the world to limit the ability to trade digital currencies, actions that threaten to hamper their booming growth.

Contracts for difference (CfD) are at the centre of the watchdog’s concerns, expressing awareness that many are losing excessive amounts of money by investing in them. These contracts allow trading to be done without owning the asset involved.

Proving the intentions of the EU watchdog, it announced that proposals for cryptocurrency regulation have already been considered and they are being looked into. This move could provide a new set of rules regarding the trading of cryptocurrencies.

EU markets watchdog stands guard as cryptocurrency concerns growCryptocurrency and Bitcoin in particular has received a full spectrum of reaction, many are highly sceptical while other remain staunch promoters, arguing that digital currency has an integral place in the future in many areas. John McAfee is a prime example of a high-profile individual championing the progress of currencies, regularly endorsing emerging examples.

In stark contrast to this, the famous investor, Warren Buffet, recently entered the arena of opinion with the belief that Bitcoin was heading towards a bad ending. The billionaire expressed this opinion when stating that he would not be investing digital currencies, adding that he was speaking with ‘almost certainty’.

Cyberattacks ranked THIRD greatest global risk in 2018
Bank of America beats IBM and Mastercard on blockchain patents
700 MILLION cyberattacks beaten by digital business in 2017

Countries including China, Russia, South Korea and Vietnam have taken action to limit cryptocurrency activity, in some cases banning it entirely. These decisions have negatively affected the booming value of Bitcoin and other digital currencies, suggesting that action from the EU markets watchdog would also deliver a blow to the ailing bitcoin value.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

After spending practically all of 2017 breaking new value records, bitcoin recently dipped below $10,000 per coin, having come close to breaking through the $20,000 mark towards the end of last year. Although difficult to be certain, there is speculation that anticipated of regulators clamping down on cryptocurrencies is driving this fall in price.

 

Topics in this article : , , ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU