It is a great irony: for Bitcoin and its cousins to thrive, they need the government. Yes, while the world of cryptocurrency is primarily designed to be untethered from the government, to go mainstream at scale, it needs the blessing of the government because people use money created by governments to acquire those crypto assets, indirectly or indirectly.
This makes the news that the European Union lawmakers have approved laws for the regulation of cryptocurrencies very amazing. Many citizens in the crypto world will not like this call, but institutional investors will come along in the near future.
European Union lawmakers have approved laws for the regulation of cryptocurrencies.
In a vote on Thursday, members in the EU parliament voted 517 in favor, while 38 voted against passing the Markets in Crypto Act or MiCA regulation, a highly anticipated regulatory framework that will take effect in 2024.
Speaking on this, the European Commissioner for Financial Stability, Financial Services, and Capital Markets Union, Mairead McGuiness said, the union is putting safeguards in place that would prevent companies active on the EU market from engaging in some of the practices that led certain crypto asset operators to collapse.
For you to invest your $1,000, you may not think of many factors, but when it comes down to $100 million, books have to be examined, because now it is other people’s money, and you cannot just gamble mindlessly.
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Like it or hate it, a clear regulation will do the crypto people a great favour because it will bring clarity on what hodlers and traders can expect in the day and night. I do hope Nigeria crafts its own regulation, or even better, the African Union should lead that for continental Africa.
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