To the uninitiated, at the most critical juncture of the Harry Potter Universe, Narcissa Malfoy betrayed “The Dark Lord” to ensure Harry’s victory. In the World of Crypto, can we say governments are pulling a Malfoy by going back on their earlier words? If we take into account examples of several governments doing a turnabout with regard to their attitude towards crypto regulations, it sure would seem that the governments are waking up to the possibility that cryptocurrencies are becoming a force to reckon with, despite not being money of the “pure-blood” variety, churned out of government mints. Many governments, a lot like the Malfoy family, are beginning to make a shift from being blatantly hostile to begrudgingly tolerant towards the mixed-blood of cryptocurrencies, which, rather in the manner of Harry Potter himself, are increasingly evolving into wizards with a bright future.
For example, this September itself, we saw the Treasury Committee of the Government of United Kingdom of Great Britain and Northern Ireland come up with a new report that recommends greater and more clearly detailed regulations for cryptocurrencies. However, this does not necessarily mean that they are ready to roll out the red carpet for crypto “Harry” yet. The report cites several risks associated with the crypto market, including volatility, frauds and scams as well as the anonymity of blockchain platforms that power crypto transactions. Even so, this Malfoy realizes that blood or the might of magic will not be enough to rein in its influence from brimming over. UK isn’t the only one. Other governments have also been turning Malfoy of late, including the government of India that had taken some of the most staunchest anti-crypto stances earlier. The Modi government and the country’s apex bank’s disinclination to give recognition to cryptocurrencies has been a well-publicized attitude. Even earlier this year, in April, the Reserve Bank of India had called upon banks to halt their cryptocurrency dealings. However, now, the government and the highest regulatory bodies have begun to realize the force and potential of crypto, leading them to begin drafting a set of comprehensive crypto regulations. The new regulations are expected to be ready by the end of 2018, bringing in its wake a new relationship between the authorities and virtual currencies.
The examples go on. Even though mainland China has taken an increasingly stern attitude towards cryptocurrencies, Hong Kong has opened up to new regulations for cryptocurrencies much like India and its past colonizers. According to latest reports on October 15th this year, Hong Kong’s SFC (Securities and Futures Commission) is mulling over fresh crypto regulations to account for the meteoric rise of this alternative economy. In fact the authorities reiterated that they are not planning to toe China’s line and ban cryptocurrencies as that could turn out to be counterproductive. China has been somewhat of a Voldemort lately, continuing to wage a war against crypto Harry even as his followers, the death eaters, turn and flee his camp.
Some Malfoys have even clung on to crypto to save their sinking ships. Narcissa had once desperately whispered to Harry right before switching over to his side, “Is Draco alive? Is he in the castle?” referring to her son. Her impassioned plea for information about her son’s well-being seems to echo governments who have embraced crypto after their national currencies were devalued by hyperinflation. The example that stands out is that of Venezuela, which, although not previously an anti-crypto state per se, was forced to embrace the Petro crypto to save the dying Bolivar. Crypto seems to have now become the country’s “Chosen One” to haul the Bolivar out of trouble.
Before the world of Harry Potter swivelled into a more inclusive one, the Ministry of Magic had borne scars of its well-known rigidity, proudly proclaiming “Magic Is Might”: that without pure-blood sanction, nothing is legitimate; much like how the governments had viewed crypto before the tables began to turn. As governments around the world pull a Malfoy by settling for a “stiff nod” to crypto Harry instead of its earlier hatred and disdain, a better-regulated crypto world seems to be on the cards.