U.S. Consumer Financial Protection Bureau head: over-regulation means ‘bad consequences’

Mick Mulvaney heading the U.S. Consumer Financial Protection Bureau has made interesting remarks dedicated to the cryptocurrency market regulation. As reported in the media, his approach is to prevent more cases similar to the collapse of Mt Gox, while also refraining from harmful restrictions which could hamper the development of the environment.

“We knew at an early point in bitcoin that as with any developing financial technology we needed to find that sweet spot … if Mt. Gox became a regular occurrence it dramatically undermines confidence in the markets and prevents innovation. And if we over-regulate and discourage people from entering the marketplace, that has bad consequences too.”

The official also noted that companies should better build their business in such a way that regulators comprehended it well.

The view of this American high-ranking civil servant surprisingly resembles the narrative taken by the Kremlin officials: they, too, pointed out the need for a careful approach together with the active supervision of the sphere. The Russian laws have a notion that ICO founders must have a clear business plan. The similarity may be explained by the need of both states to keep the market flowing while preventing financial scandals.

Image: AP