Coinbase listing: Bitcoin investors must expect more crypto regulations
Today is a huge day for Bitcoin and crypto as the largest cryptocurrency exchange in the U.S., Coinbase, gets ready for its IPO.
During an interview with BBC News on Wednesday morning, I talked about how Coinbase’s direct listing really is a momentous day for the cryptoverse.
Under the symbol COIN, Coinbase is launching its IPO on the Nasdaq today, and should it reach its $100 billion private market valuation, it would straight away become one of the 85 most valuable companies in the United States.
As I was quoted by Yahoo Finance, this is fuelled by the world’s two largest cryptocurrencies, Bitcoin and Ethereum, intrinsically linked to Coinbase, having increased 800% and 1,300% respectively over the past year.
Yet, alongside these meteoric price hikes, and as cryptocurrencies become increasingly rooted in the global financial system, and as Coinbase’s direct listing on the Nasdaq will reach a far wider investment base, investors need to expect a much greater degree of government scrutiny.
Of course, governments, central banks and regulators will be keen to protect the currency status quo.
Indeed, higher levels of crypto regulation, in my view, are inevitable.
That said, Bitcoin investors should in no way be deterred by the possibility of enhanced government scrutiny.
Major crackdowns are highly unlikely as cryptocurrencies are increasingly recognised as the future of money, even by traditionalists.
Proportionate regulation should be welcomed. It would help to protect investors, bolster the market, tackle criminality and lessen the chance of disrupting global financial stability, as well as offering a possible economic boost over the long-term to those countries which introduce it.
The Coinbase direct listing on the Nasdaq highlights how cryptocurrencies, in some form or another, are here to stay. And the market will only grow from here.
As such, investors should know that increased regulation will become a higher priority.