Timothy J. Dennin, P. C . Securities Attorney Protecting Investors Rights
Free Initial Consultation
Call Today 866-437-9475

Regulations may halt the cryptocurrency craze

The thought of virtual money is obscure, but not entirely unfathomable. Like stocks and similar investments, you can purchase and sell cryptocurrencies such as Bitcoin or Ethereum that have slightly unusual properties. Many older investors are curious about whether to enter the market. However, economists and market observers have a few new concerns.

On this blog, we previously discussed how people sold fake cryptocurrency investments to Baby boomers. Governments around the world have begun to notice that this kind of behavior is placing investors at risk. These virtual coins, given their newfangled status, have not faced regulation like established currencies, but that may soon change.

China, Japan and South Korea plan to regulate cryptocurrencies in the near future, if not forbid them altogether. American officials may also seek to create laws to protect investors and detect illegal activity, such as money laundering. The SEC already warns investors to tread this virtual market carefully.

Because digital currencies cross international markets, regulations in any country impact all investors. This could have a profound effect on the value of existing crypto investments. Cryptocurrencies can fluctuate between hundreds of dollars over a few hours, but the threat of regulation could cause a steady – perhaps sharp – decline. Investors might start to exit the market in an attempt to sell their coins at maximum value before regulatory requirements make trading more difficult.

While new legislation threatens the value of digital coin for current participants, investors could also benefit from additional government protection. Regulations could facilitate justice in securities litigation cases. They could potentially decrease the amount of fake investments from both domestic and overseas fraud.

No Comments

Leave a comment
Comment Information

Contact A Manhattan Investment Fraud Lawyer With Extensive Experience

For a free consultation with an experienced New York City securities litigation lawyer, contact the law firm of Timothy J. Dennin, P.C., by calling 866-437-9475.

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.

Secure Case Evaluation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Watch our video here to discover how we can help you with your securities case.

Contact Information

Attorney Advertising

Northport Office
316 Main Street
Northport, NY 11768

Toll Free: 866-437-9475
Fax: 631-261-0395
Northport Law Office Map

New York Office
270 Madison Avenue
13th Floor
New York, NY 10016

Toll Free: 866-437-9475
Fax: 212-688-6457
New York Law Office Map