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Message: <blockquote data-quote="Dheepa" data-source="post: 79168" data-attributes="member: 1572">I’ll confess I’m not a crypto or trading expert. [USER=5063]@Jacob Miller[/USER] will probably have a much more solid technical analysis of the situation. What I do know however is that the drop in the crypto market is part of a necessary price correction.Prices soared earlier this year because, despite existing regulatory concerns on money laundering and price volatility, there was a sudden mainstream acceptance of Bitcoin and other crypto assets (discussed <a href="https://www.thecorporatelawacademy.com/forum/threads/goodbye-fiat-tesla%E2%80%99s-investment-in-bitcoin.3426/" target="_blank">here</a> in slightly more detail). In my opinion, the price drop at the moment is not just the market’s return to the cautionary stance it had on crypto but is also a response to any wide spread interest in any new area: even more regulation.<ul> <li data-xf-list-type="ul">As this article discusses, Elon Musk backtracked on accepting Bitcoin payments for Tesla apparently due to wider concerns on the environmental cost of mining Bitcoin.</li> <li data-xf-list-type="ul">Where previously the People’s Bank of China (PBOC) were heavily invested in creating <a href="https://www.wsj.com/articles/china-creates-its-own-digital-currency-a-first-for-major-economy-11617634118" target="_blank">crypto currencies of their own</a>, they issued an unexpected warning against financial institutions offering crypto currency products or accepting crypto payment.</li> <li data-xf-list-type="ul">A slightly lesser known point, but one that still led to a 5% decrease in Bitcoin’s value following the announcement, Biden announced new tax regulations on crypto currencies. Any transfer of crypto above the value of $10000 will have to be declared to the IRS</li> </ul>What does all this mean for law firms?<ul> <li data-xf-list-type="ul">While earlier this year it was fair to speculate an increase in transactional and advisory work from crypto related deals: Coinbase’s listing, ICOs, investment in Bitcoin futures contracts, advice on deploying crypto payment services, new regulation likely means most of this work will substantially slow down or stop completely for the time being.</li> <li data-xf-list-type="ul">Instead law firms can expect more regulatory work than ever on this front especially with the new role environmental regulation will now have in this area. It’s important to bear in mind that technically, the mainstream interest in crypto hasn’t died down. Investment banks are already offering crypto services and payment service companies like PayPal and MasterCard are still going ahead with plans to allow crypto payments. I think the long term case for Bitcoin and crypto is still strong, it’s just a matter of how quickly regulation can catch up to address current concerns. </li> </ul>Thank you to [USER=5492]@Asil Ahmad[/USER] for his suggestion on discussing this topic for this week! <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile    :)" loading="lazy" data-shortname=":)" /> Going to leave everyone with a meme. [ATTACH=full]3364[/ATTACH]</blockquote>

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