With Regulatory Doom and Gloom Fading, Cryptocurrencies Show Signs Of Rebound

Investing.com - Just as the threat of a regulatory crackdown triggered a selloff in cryptocurrency prices in late January, a more favorable regulatory environment since then has helped power a recovery in prices. Since bitcoin briefly traded below $6,000 in early February, comments or actions by regulators in several countries have been positives for the market, bringing the digital currency back above the $10,000 level. Most recently, Swiss regulators issued a set of guidelines for initial coin offerings, which called for treating them as securities, further legitimizing them.Singapore's top regulator indicated the government sees no systemic risk from cryptocurrencies and thus no need to ban trading in them. In the U.S., the White House's top cybersecurity official echoed the position of the nation's two top financial regulators that there needed to be more understanding of digital currencies before the establishment of a regulatory framework.Even South Korea appeared to back off from any draconian measures, with reports indicating the government is now considering a licensing system for cryptocurrency exchanges instead of a ban.In general, regulators appear more concerned about the use of cryptocurrencies in illegal activities, such as money laundering, and establishing investor protections, than limiting or banning the use of digital currencies.