Question #105 ·
What effect do U.S and U.K regulatory crackdowns have on the bitcoin market?
- They increase consumer protection but may raise compliance costs and reduce fraudulent market activities over time Right answer
- Regulatory authorities ban use of bitcoin for online purchases driving traders to popular alternative digital assets
- Regulatory crackdowns force all exchanges to close international transfers overnight causing bitcoin to lose global liquidity
Why is this the correct answer?
This is correct because U.S. and U.K. regulators have introduced stricter rules and enforcement actions aimed at preventing scams and ensuring firms follow clear standards. For beginners, stronger rules help protect investors from fraud but can increase the cost and complexity of running exchanges, which in turn reduces shady actors and improves overall market trust.