Professor Emilios Auguleas, Chair of International Banking and Finance Law at the University of Edinburgh, is excited about the prospect that cryptocurrencies will be widely used around the world. The professor also claimed that stricter regulations on cryptocurrencies would be better for the development of the crypto industry.

Tighter crypto regulations are better for industry growth

Professor Emilios Auguleas spoke in an interview with Insider last week about how useful strict regulations can be for the crypto industry.

Professor Avgouleas holds the Chair of International Banking and Finance at the University of Edinburgh and is a Senior Research Fellow at the crypto technology company IOHK. According to the university, he is “a leading international expert on financial reform, fintech policy and regulation, banking theory and regulation, capital market regulation, law and finance, and economic policy”.

Professor Auguleas describes that government efforts to regulate the crypto industry will make cryptocurrencies more legitimate and more difficult for criminals to use. He acknowledges that regulation can be a bad thing in the short term as market prices will fall, “he believes,” he believes that “at the same time, regulation makes these alternative payment methods even easier”, more acceptable to users. Professor said:

“In the long term, this will enable a seamless transition from public money to digital means of payment.”

Avgouleas also said that central banks examining government-issued digital currencies, Central Bank Digital Currencies (CBDCs), must legitimize cryptocurrencies in the eyes of consumers.

Professor Auguleas also said he was an optimistic outlook for cryptocurrencies as he believes they can be widely used around the world as they are private, secure, and nationally economical.

Crypto Regulations: Pros and Cons

More and more countries are taking the regulation of cryptocurrencies more seriously. China has banned bitcoin mining and payments. In the United States, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), has called for increased oversight over cryptocurrency exchanges and consumer protection legislation. But bitcoin and cryptocurrencies are lagging behind after exiting the SEC’s regulatory program this year.

So what are the pros and cons of cryptocurrency regulation?

Proponents of cryptocurrencies have been particularly wary of any prospect of crypto regulation. Apple co-founder Steve Wozniak has warned that most countries want as much control as possible to maintain a source of income.

Others fear that such regulations could massively disrupt two of the cryptocurrency’s unique selling points: transparency and anonymity.

There is then the argument that Bitcoin and the following cryptocurrencies are aimed at decentralization – very different from the financial infrastructure that caused the devastating recession of 2007 – and that the adoption of cryptocurrencies The death toll removes some of the centralization that it so does attractive and is the perfect method against inflation.

Managing crypto and blockchain startups could also transform the way investments are made. For all of its shortcomings, the initial coin offering allows crypto users of all budgets to contribute to projects they are passionate about – and consider future fundraising drivers. In much the same way that equity risk prevents these investors from favoring wealthier individuals.

There is a risk that laws and frameworks will also struggle to keep up with the breakneck pace of the crypto and blockchain industries, leading to scenarios similar to those of Google and Facebook when the internet became famous. In a similar context, many in the crypto world fear that they will end up being regulated by officials who just don’t understand the technology behind it.

Not everyone agrees that regulation for blockchain and cryptocurrencies is necessarily catastrophic. Also with regard to the initial coin offerings, some argue that the introduction of strict regulations is an opportunity to put in place some important investor protections that market participants cannot afford.

Regulation can also provide the much-needed seal of approval that keeps many companies from diving – pumping billions of dollars worth of capital into the industry and driving regulation forward.

This also ensures that crypto startups that meet the same standards as those going through an IPO can also upgrade the quality of new projects. However, it won’t be without a cost. Initial Coin Offerings, Initial Exchange Services, and Security Token Offerings are usually quick and efficient – and strict regulations and disclosure measures will slow everything down.

There is also the problem of cryptocurrency fraud. The industry has been around for more than a decade now, but it still struggles to address the problem of risk fraud that continues to cost vulnerable investors millions of dollars.

Some consider the fact that these incidents continue to happen with such frequency as evidence that the crypto world needs experience to gain legitimacy.

Others say that self-regulation is also a solution to limit and overcome such scams and scams.

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