The only "regulation" that works is that of failure. Regulation, on the contrary, spreads systemic risks, even for cryptocurrencies ...
A few days ago, my mood darkened after reading this on Reuters:
Regulators know that cryptocurrencies and blockchain could pay big dividends but [they] are watching the catastrophic impact very closely in the event that good governance, stability and control are not preserved.
If the core of the self-regulation proves insufficient, the regulators will not hesitate to use the stick.
These are the words of David Futter. I say we should send the regulators back in their ropes, with carrots and sticks.
What Futter argues is stupid, even if regulators locked in their interventionist world believe it.
Self-regulation works by failure, just like creative destruction. It is failure itself that is good governance.
The whole problem of self-regulation is that it prevents the failure from being catastrophic because it remains isolated. When regulators get involved, a problem becomes systemic because regulation affects the entire system. When Lehman Brothers went bankrupt, it triggered a global financial crisis. When the Japanese Mt. Gox cryptocurrency exchange platform went bankrupt, people were scammed.

A step ahead of the regulators
The good news is that technology seems to be the only sector with growth fast enough to stay one step ahead of regulators.
Last night, at the Mount Gambier motel in Australia, our waiter was talking to the bartender about the bitcoin. Just prior to the Great Depression, a famous investor had liquidated all his shares because his shoeshine had given him a pipe on a stock market investment. Are we reaching the same saturation point?
When large respected companies enter the dance, several pitfalls of cryptos can be treated.

       The ambiguous game of big business

The CME Group has recently introduced bitcoin futures. CME Group runs the Chicago Mercantile Exchange, the world's commodity exchange. As their trades are mostly through derivatives, they have also become a domiciliation for other derivatives globally, creating the largest derivatives exchange in the world.
Knowing exactly why people need future bitcoin remains a mystery. Why not just buy bitcoins? A bitcoin does not need a warehouse like wheat or copper, so a derivative has no advantage. I'm afraid that once again, the financial world is not trying to get on the bandwagon and can not drive it. Today, gold futures far outweigh the bullion available. But this is another story.
The second largest bank in South Korea has announced that it is launching a secure bitcoin portfolio for its clients. The launch is scheduled for the middle of next year. They are unlikely to find a compromise between bitcoin and traditional banking law. But others will follow.
The reason given for this innovation is revealing: there has been too much controversy, theft and fraud in the world of bitcoin; people trust their bank more. Banks could well become the new bitcoin hubs. Except that I do not trust banks ...

      Bitcoin crime

Reading a Telegraph article on the latest figures of bitcoin crime has not improved my mood:
There are 8,652 cases of 'diversion' [bitcoin] by 18-24 year olds between January and September of this year; an increase of 75% compared to the previous year and twice as much as four years ago, according to figures from the CIFAS, the fraud prevention service.
Scandalous! Something has to be done. Making cryptocurrency illegal is the first essential step ...
Except that this article, in which I introduced by malice [bitcoin], speaks in fact of ordinary bank accounts, not of bitcoin nor any other cryptocurrency. Mules are those that allow criminals to use their bank account to conceal illegal transactions. Their number is increasing sharply.
So it's not just cash that competes with bitcoin in the shady trading world. Bank accounts too.
In an effort to ban these "escapes," I think we should ban bank accounts.
It is useless to make a difference between cryptocurrencies, cash and bank accounts. If you want to ban one, you have to ban them all.