New York Paving Way for Crypto Reform?

People’s interest when it comes to cryptocurrencies isn’t fading any time soon. That is despite the bearish market today. If you will take a closer look at Bitcoin, it is far from its all-time high last December. And most likely, if you’ve entered the market during the latter part of 2017, you may be asking yourself if you should just cut on your loss and cash out.

Though the price isn’t looking good for cryptocurrencies today, there are developments that could mean good things to digital currencies. New York is now looking to establish rules regarding cryptocurrencies that can ultimately boost its adoption in the state. And if you believe crypto believers, this could potentially mean that you should be buying now.

New York State Assembly has proposed to launch a digital currency task force. Its goal is to examine the crypto as well as the blockchain industry operating within the state. By December 2019, the task force is expected to come up with their findings.

Crypto Is a Part of Financial Markets

The task force is going to look closely at some important things regarding cryptocurrencies, exchanges, and even its tax implications. For instance, the task force is going to take a closer look at the number of cryptocurrencies and each digital currency’s market share in the market. Also, the task force is trying to dig deeper into the impact of these digital currencies when it comes to tax matters from both state and local tax receipts.

Both crypto exchanges and crypto investors are also going to be under scrutiny, as the task force is going to take a closer look at the average monthly volume and who are the large investors in digital currencies. In addition to this crypto mining is also going to be given attention considering the energy consumption required for its activities.

The potential issues of price manipulation will also be included in the task force’s report. And also, existing laws are also going to be checked from state laws to federal laws and even laws by other countries.

These things will keep everything checked with an aim to increase consumer protection and for New York to be prepared for the future.

Regulatory Clarity

There is no doubt an interest from the institutional investors. However, what’s stopping institutional investors is said to be the regulatory clarity on the part of the market. Could the task force be a good step towards regulatory clarity on the part of the crypto industry?

Different countries have different rules when it comes to the cryptocurrency market as a whole. There are also some countries that even change their stance towards cryptocurrency activities just like Quebec that has welcomed crypto mining once again. And also, you have Japan that is now becoming stricter when it comes to the operation of cryptocurrency exchanges.

New York’s move could mean a good thing considering the number of things that need to be fixed in the current state of the industry. This could mean that New York could pave way towards making the right reforms for the sake of the crypto market.