It’s been just reported that the crypto space can only succeed with strong regulation. Check out the latest reports about this below.
Crypto and the necessity of regulation
According to the latest reports, it seems that the US-based venture capital firm Andreessen Horowitz (a16z) says that it is expanding to the United Kingdom (UK) because crypto regulations are clearer there.
In a new announcement, Chris Dixon, who is the founder of Andreessen’s $7.6 billion a16z crypto fund, stated the fact that crypto can only succeed where governments are establishing clear rules for digital assets.
It’s been also reported by the online publication the Daily Hodl the fact that the announcement comes just days after the U.S. Securities and Exchange Commission (SEC) sued the world’s top two crypto exchanges Binance and Coinbase for allegedly breaking their rules.
Dixon stated the following:
“Over the last year, it has become clear that blockchains and the software movement around them – usually called crypto or Web3 – can only succeed with a clear regulatory regime that provides an open pathway for startups while also protecting consumers from fraud and manipulation.”
It’s been also revealed the fact that “This regulation should be aimed at stamping out the ‘casino’ culture that has developed around crypto, while also allowing constructive applications to reach their full potential.”
Institutional investors boost the crypto space
It’s been just reported that the digital assets manager CoinShares says institutional investors are likely being scared away by US monetary policy. This has been happening as the crypto markets suffer outflows for the eighth week in a row.
As the online publication the Daily Hodl notes, in its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional investors sold off $88 million in crypto holdings last week. The same online pubcalition notes the fact that this might possibly be due to interest rates.