Where Bitcoin and Banking Collide

Noelle Acheson is a 10-year veteran of company analysis, corporate finance and fund management, and is a member of CoinDesk’s product team.

The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered exclusively to our subscribers.

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A relatively quiet and traditionally isolated market is about to set a precedent that could change the blockchain sector.

Last week, CoinDesk met with a group of representatives from some of Japan’s blockchain startups and enterprise players. Conversation revolved around the upcoming regulation of cryptocurrencies, and the impact it would have on industry business models.

The consensus seemed to be that the new rules (a requirement to get a license from the Financial Services Agency, register with the anti-money laundering authorities and submit to periodic audits and inspections) would be good for the sector. Bestowing legitimacy will get both people and businesses more comfortable with alternative currencies, increasing volume, investment and network effects.

But that’s not to say there isn’t a cost.

One of the main risks is that the legislation ends up having the same effect as New York’s ‘BitLicense’, driving out businesses and stagnating the local ecosystem. And while you could argue that the additional stability and

Read more ... source: CoinDesk

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