Crypto’s “Frontier Market” Needs Clearer Laws, Says U.S. Fund

The cryptocurrency ecosystem currently faces three critical issues: a lack of liquidity, thriving criminal activity, and the spread of misinformation. These barriers prevent crypto’s jump from a frontier market to an emergent one.

Upon closer investigation, however, these are just symptoms of the lack of clear laws.

Crypto and Frontier Markets

Large institutions, in particular, have been on the sidelines for an extended period, waiting for regulators to chime in on the cryptocurrency discussion. 

Agencies have been a part of the discussion, but there is little coherence in the direction they have taken thus far. Very few jurisdictions offer a clear regulatory framework for digital assets, and fewer have laws in place related to crypto.

This had led to three distinct problems including, a lack of liquidity, the rise of malicious actors, and the dissemination of unreliable information.

Strix Leviathan, a Seattle-based cryptocurrency hedge fund, believes these issues are shared by all…