China’s Cryptocurrency Ban a Gift to Friendlier Jurisdictions | bitcoin | crypto

Against all odds, cryptocurrencies have increased their market capitalization from nothing 10 years ago to over $214 billion today. However, investor concerns over government regulations are looming.

Government regulation is focusing on two broad aspects of cryptocurrencies: electricity use and traceability. For example, China is focusing on electricity use while South Korea is focusing on traceability. Further, the Fifth Anti-Money Laundering Directive from the European Union is set to focus on traceability, with new rules on how know-your-customer and anti-money-laundering regulations should be applied to cryptocurrencies.

Since the Chinese government has banned both cryptocurrency mining and trading, it is more likely that the impetus for the regulation is capital control instead of energy efficiency. However, within the context of the EU Horizon 2020 goals and the Paris accord, electricity use is an easy target for governments looking to curtail cryptocurrency adoption. Due…