The Most Recent Cryptocurrency Regulation News

2022 Could Change Crypto

As we move further into 2022 there are many market analysts and experts attempting to predict the market’s future direction in the rest of 2022. The cryptocurrency and digital asset industries are characterized by extreme volatility. However, as more institutions join the decentralized banking area, the issue of regulation is becoming a recurrent subject of discussion.

The worldwide regulatory environment and its progress over the previous 12 months must be evaluated and comprehended before we can think about the future of regulation in the crypto industry. There are a variety of probable causes for this phenomenon.

An Update Of The World And Crypto!

The first and most important was China’s September ban on all crypto transactions, thus rendering all tokens illegal. This comes months after the Chinese government instructed banks to cease supporting mining. As the government promotes the digital yuan, it is clamping down on various secondary crypto transactions and activities, basically compressing the industry and driving crypto entrepreneurs and investors away.

As a result, other countries shifted their positions to provide an alternative to these Chinese players. This year, the United States has steadily grown more crypto-friendly. For example, when Chinese miners departed the nation, Foundry USA became the second-largest Bitcoin mining pool. This reflects the attitude that the United States presently has regarding digital assets.

Although the Securities and Exchange Commission (SEC) is essential to regulating digital assets in the United States, laws, guidelines, and enforcement actions filed by other agencies are also taking form. Federal regulators such as the Commodity Futures Trading Commission (CFTC), the United States Treasury’s Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Office of the Comptroller of the Currency (OCC) are all working to regulate cryptos in their respective areas of authority.

Singapore, which is already positioning itself as Southeast Asia’s crypto powerhouse, also benefits from the Chinese crackdown. Some Chinese cryptocurrency exchanges now fully operational from Singapore include Bybit, Huobi, and Okcoin. Under its Payment Services Act, the Monetary Authority of Singapore (MAS) implemented crypto-related laws in 2020 to govern the crypto business. The legislation mainly protects customers while also protecting the government from money laundering. The legislation requires exchanges and digital payment systems to be licensed for their operations.

Regulation Updates From The EU And The United Kingdom

Because of its geographical location and political stance, Switzerland’s advance in the field has pressured the European Union to become more crypto-friendly to prevent losing all digital asset players to the landlocked country. As a result, the European Union has become more crypto-friendly. Several supranational initiatives are now underway, implying that the European Union oversees the digital asset sector. The most comprehensive is a 168-page paper titled “Markets in Crypto-Assets” (MiCA), which proposes a licensing structure for cryptocurrency issuers and service providers at the European Union level. This was initially proposed in September 2020 and has been under consideration ever since. Because of its breadth and length, it was supposed to take a long time to get through the European Parliament, yet it is the closest thing to official law in the European Union’s member states.

Takeaway

After further deliberation, the EU may feel obligated to act more rapidly if the crypto market in Switzerland becomes more crowded and competitive. Due to the increasing number of institutions showing interest in the cryptocurrency space, it appears only a matter of time before the European Union (EU) must be more accepting of digital asset regulation to avoid losing an essential share of the modern, digital economy while also minimizing potential risks for the broader financial system as the boundaries between financial firms and technology companies become increasingly blurred.

The United Kingdom may consider Brexit as a critical opportunity to leapfrog its European rivals. However, based on previous experience, the regulators do not appear to be as enthusiastic about the prospect as the British government is. The UK’s HM Treasury has launched a consultation on regulating various stable coins, particularly those connected to actual currencies or assets, to keep their value stable.