Deeper Understanding of Cryptocurrency Needed to Protect Investors and Consumers, Says Augusto Beato

Other states and countries should follow New York's lead of creating a cryptocurrency task force aimed at studying the regulation, use, and definition of digital currency, according to Portland SEO's Augusto Beato.

New York governor Andrew Cuomo signed the bill dubbed “The Digital Currency Study Bill” into law on Dec. 21, 2018.

The members of the New York task force — including technologists, consumers, investors, blockchain companies and academics — will study the impact of regulations on the development of digital currencies and blockchain industries within the state, the use of cryptocurrencies’ effect on local tax receipts, and the transparency of the digital currency marketplace.

Beato noted that this is imperative due to the downturn in the crypto market that saw cryptocurrencies lose more than half of their values have continued into the new year.

Since the crash started in November, the number of blockchain companies restructuring their operations has increased as companies devise new methods to survive the bear market. Beato said that some cryptocurrency creditors have been able to find profits from selling to two types of borrowers: die-hard crypto believers— who expect the market to rebound strongly and institutional investors—who need to get digital assets for short selling.

But generally, he noted that in the last three months most blockchain companies were forced to shut down operations and layoff team members to stay afloat. "While crypto lending has continued to thrive, these should be a balance between having a robust blockchain industry and cryptocurrency economic environment while at the same time protecting New York investors and consumers, " said Beato, who is the CEO of Portland SEO.

He added that effect is felt globally and even Japanese e-commerce conglomerate DMM.com Ltd. will shut down its crypto mining business, due to deteriorating profitability.

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