The cryptocurrency space remains largely unregulated in many countries, but authorities are actively exploring how best to oversee the market.
Jalak Jobanputra, founder and CEO of Future Perfect Ventures, believes that introducing regulation will ultimately strengthen the legitimacy of cryptocurrencies as an emerging asset class.
She shared this view in a recent interview with Yahoo Finance. Jobanputra said:
“I have always believed there would be regulation as this sector grows and reaches a significant number of users. I think regulation is a net positive. There are people in the industry who oppose any form of regulation, but to scale the sector we need rules, and it’s important that regulators understand what this technology is about.”
U.S. policymakers continue to examine cryptocurrencies to determine the most effective way to regulate this emerging asset class. At present, however, comprehensive, concrete regulation remains limited.
Even without clear global rules, governments are taxing participants in the crypto industry. In many jurisdictions, cryptocurrency exchanges are required to register with relevant authorities before operating.
Jobanputra also addressed growing competition between Bitcoin and Ethereum, suggesting that Ethereum could pose a long-term challenge to Bitcoin. The VC CEO commented:
“What we’re seeing now is renewed innovation on Bitcoin. It has been viewed as a store of value and an inflation hedge amid expansive monetary policies worldwide in recent years. Ultimately, Bitcoin remains the most secure blockchain available today.”
Over the past few days the crypto market has underperformed, while Bitcoin is currently trading above $40,000.