Analysts weigh on 2019 Cryptocurrency Settlement Options


2018 has come and gone, and with 2019 a few days later, many are wondering what the new year will bring for cryptocurrency fans.

While 2017 was the year of the bull market (the bitcoin reached its all-time high of nearly $ 20,000), 2018 was the year of the proverbial opposite. Bitcoin and all its equivalent altcoins have begun to decline dramatically, losing between 70 and 90 percent of their values ​​and overall gains.

Crypto regulation

Bitcoin, for example, fell to around $ 3,800 at the time of the press, with a loss of over 75%, while its main competitor Ethereum – known for the ethereal token and its intelligent ability to contract – rose from around $ 1,400 last February at around $ 100 at the writing time, marking a decline of over 90 percent. EOS, the bitcoin money and Ripple XRP are also some of the many declining digital resources for counting.

What will happen in 2019

Will this year be different, or can we expect more in the next 12 months? It seems that prices are no longer the main concerns of analysts and industry leaders (for example, Tom Lee said he no longer provides bitcoin prices in the future), but rather what could or is happening in the industry in terms legitimacy. and regulation. The only way to encrypt to attract any kind of attention and institutional legitimacy is that regulation comes into force and that people do not start playing according to the rules, HODLers can kiss their long-term greetings goodbye.

For the most part, we are seeing organizations like the Securities and Exchange Commission (SEC) start to weave deeper and deeper into the cryptocurrency arena. Companies like Paragon Coin and AirFox were forced to pay severe penalties and fines of $ 250,000 when they failed to register their first coin offerings (ICOs) as titles, although they did so willingly and expressed joy that the results were not worse.

You must register

The law firm Herzog, Fox and Neeman partner Roni Cohen Pavon believes that cases like these have really created a precedent in the cryptocurrency arena. While it is likely that we will see a greater number of companies that do not meet specific protocols, eventually the desire for legitimacy and legality will take the place it should. Review:

"While we are witnessing an increase in security tokens and their purpose as a fund-raising method, we will also be assisting regulators who begin to grant trading licenses that provide liquidity to these assets, ultimately giving them real advantage. we will see more regulators trying to add trust to semi-bank services such as custody encryption and payment processing, which ultimately makes the retail investor and the best consumer experience ".

More difficult than it looks

One of the big problems with registering an ICO for security is the amount of time it takes. The registration process with the SEC is quite long, often requires much documentation and a lot of patience on the part of the company.

It is also expensive. The complete registration of a security is likely to cost more than a few thousand dollars, and many encrypted and blockchain-based companies are doing everything possible to change their currencies, so they do not have to register as securities.

Ultimately, long-term results are on the rise, but many third-party platforms have emerged that are designed to ease the burden of registering securities by assisting companies at every step of the process. This sudden and general ease can help companies understand why registration is important, which could reduce taxes in the future, as more companies follow and take part.

A new way of doing things

The lawyer Blockchain and the cryptographic consultant Guido Schmitz-Krummacher believes that things should change, in the sense that tokens should not be considered as securities but rather as "existing assets". He states:

"The products and applications in the blockchain ecosystem will become increasingly complex, so establishing the right internal regulation strategy can save a lot of money and ensure the longevity of your project."

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