Cryptocurrency investors to “brace” themselves for much greater government scrutiny and much higher levels of regulation as cryptocurrency platform Coinbase makes its public debut on the Nasdaq, deVere Group CEO Nigel Green has warned.
Bitcoin rallied to record highs above $64,000 ahead of the listing, which marks the first major crypto-currency company to list on the stock market.
Green said: “Coinbase’s direct listing is a truly momentous day for the cryptoverse. Should it hit its private market valuation of $100 billion, it would immediately become one of the 85 most valuable companies in the U.S.
“Of course, this is driven by the fact the world’s two biggest cryptocurrencies, Bitcoin and Ethereum, to which Coinbase is intrinsically linked, have risen 800% and 1,300% respectively over the last year.”
But Green noted that as cryptocurrencies become increasingly embedded in the global financial system and reach a wider investment base than previously, investors must be prepared for much higher levels of regulation.
He explained: “Governments, central banks and regulators will be keen to protect the currency status quo. We should expect considerably higher levels of regulation in the crypto market. Indeed, I believe it is inevitable.”
However, Green urged investors not to be put off by the growing scrutiny, noting that “major draconian clampdowns” were unlikely as digital currencies are increasingly regarded as the future of money.
Rather, investors should welcome proportionate regulation as it will offer greater protection, shore-up the market, tackle criminality and reduce the potential possibility of disrupting global financial stability.
Green added: “The Coinbase IPO underscores that cryptocurrencies in some form or another are here to stay – and the market is only set to grow. Because of this, investors should know that regulation will become a greater priority.”
