Bitcoin and other digital currencies have faced an array of regulatory challenges in the U.S. and abroad. Earlier this month, South Korean prosecutors raided the offices of Upbit, a major digital currency exchange operator. Other countries have moved to limit or outright ban transactions in digital currencies.
“Authorities worry that virtual currencies are susceptible to fraud for multiple reasons: skepticism that all exchanges are actively pursuing cheaters, wild price swings that could make it easy to push valuations around and a lack of regulations like the ones that govern stocks and other assets,” according to Bloomberg.
Previously, many crypto market observers have argued that increased regulation of digital assets is a positive factor and one that would facilitate more adoption and use of the decentralized asset class.
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