Coinbase CEO indicates crypto regulations have improved, here’s why

Bitcoin [BTC] the world’s largest cryptocurrency had to struggle for years to stave off its association with the dark web. Despite all efforts, certain governments continued to express hostility towards the crypto industry in general. The lack of regulatory clarity in certain parts of the world slowed adoption. However, a recently released chart pointed out that there has been significant progress in crypto regulations.

In a recent tweet, Coinbase CEO Brian Armstrong pointed out how the clarity of crypto regulation had advanced in just the past year.

According to the image above, countries like Switzerland and Japan had ticked most of the boxes on the list. Both countries had regulations in place in terms of crypto framework, tax, AML/CFT, travel rule and stablecoin regulations. Your central bank’s digital currency [CBDC] laws were still in progress.

In addition to these, it was noted how prominent countries such as the US, Canada and the UK did not have any kind of crypto regulatory framework in place. Nevertheless, it was a consolation for many that most of the table was painted in green and yellow as “regulation in place” and “regulation in progress”.

Furthermore, the recent increase in regulatory clarity comes mainly from the fall of a number of crypto projects over the past couple of months. The dramatic collapse of Terra instilled fear in many, forcing them to roll out regulations at the earliest.

Will Bitcoin thrive without proper regulations?

Bitcoin managed to emerge as a prominent currency without much regulatory oversight. The adoption of crypto witnessed a significant increase. However, this is most likely to evolve with more regulatory clarity. With retail investors entering the market, regulations are considered relevant.

Regulations are expected to provide financial stability without dampening innovation. Market manipulation is expected to be avoided if strict rules are in place. In addition to this, fraudulent projects and fraudulent cryptocurrencies will be sidelined, while prominent projects such as Bitcoin, Ethereum [ETH], and others stand in front of the stage. All these would make the crypto market a safe haven which would further encourage retail investors to dive into the market.

Coinbase’s CEO added,

“Current consensus will lead to much greater adoption.”