Cryptocurrency: Beyond Bitcoin Teach-Out

In the last video, you learned how the United States regulates cryptocurrency assets on a federal level. In the next video, Diego Zuluaga, Principal at Fingleton, weighs in on some of the purported risks related to Bitcoin and other cryptocurrency and whether regulation offers solutions.  Countries such as Singapore, Switzerland, and the United Kingdom aim to mitigate risk to investors by classifying tokens as payment tokens, security tokens, and utility tokens, and regulating them accordingly.

Diego also talks about the potential of cryptocurrencies to disrupt global financial stability, which would require widespread adoption as a medium of exchange. At this time, no cryptocurrency - even Bitcoin - has enough adoption to impact central banks in leading countries. However, it is being adopted in some countries with very unstable economies.

Hailey Lennon, Partner at Anderson Kill, then continues the conversation about cryptocurrency’s reputation for being a haven for criminal activity. She notes that most new technology, like the early internet, is often used for illicit activity, until governments develop plans to deter criminality. From just 2019 to 2021, the percentage of cryptocurrency transactions tied to criminal activities has fallen significantly. In practice, cryptocurrency may be much less attractive to criminals than cash.