The cryptocurrency space remains largely unregulated in several countries, but authorities are already looking into regulating the market.
Future Perfect Ventures founder and CEO Jalak Jobanputra believes that regulating the cryptocurrency market will ultimately strengthen the legitimacy of digital currencies as an emerging asset class.
She stated this during a recent interview with Yahoo Finance. Jobanputra said;
“So I always believed that there would be regulation when this sector in the industry grew to the point where there were a lot of users. And so I believe it’s a net positive. I mean, there are those in the sector that don’t want to see any sort of regulation. But in order for the sector to grow, I think we are going to have to be regulated, and it’s important that the regulators understand what this technology is about.”
The United States government continues to look at cryptocurrencies to figure out the best way to regulate this emerging asset class. However, there is no concrete regulation currently available.
Despite the lack of clear-cut cryptocurrency regulation in most parts of the world, governments are taxing crypto industry participants. Furthermore, cryptocurrency exchanges are required to register with relevant authorities before operating in most countries.
Jobanputra also talked about the increasing competition between Bitcoin and Ethereum. She believes that Ethereum will challenge Bitcoin in the long term. The VC CEO said;
“But what we’re starting to see is innovation happening back on Bitcoin. We certainly have seen it play out as a store of value, as a hedge against inflation, as we’ve seen these expansionary monetary policies around the world over the last couple of years. But at the end of the day, Bitcoin is the most secure blockchain that exists right now.”
The crypto market has been underperforming in recent days, with Bitcoin currently trading above the $40k mark.