Regulation

Overview 2024: securities regulation of activities involving crypto assets in Canada | Global law firm

Published

5 months ago

19 May, 2024

Overview 2024: securities regulation of activities involving crypto assets in Canada | Global law firm

We can look back to 2023 as a year of categorization and enforcement in the crypto space across the world, with significant local and international developments impacting the crypto markets and their regulation in Canada. This was no surprise, as such developments came following the turbulence of 2022 where many important crypto institutions crashed and went bankrupt, resulting in immense financial consequences for investors and users involved.

Attempts to qualify crypto assets at law, to develop applicable regulations and to enforce current legislation have multiplied since late 2022 and throughout last year. The Canadian Securities Administrators (CSA) released various staff notices to provide a more precise legal framework for crypto assets, including differentiated frameworks according to types of stablecoins. In general, regulators in the United States and Canada have been focused on integrating crypto trading platforms (CTPs) by clarifying and enforcing existing legislation,1 all the while courts have considered applying existing securities principles to crypto assets, which leads to interesting outcome differences in the US with SEC v Ripple Labs, Inc.2 and SEC v Terraform Labs Pte. Ltd.3

Crypto assets now undoubtedly represent a permanent asset class and many activities involving crypto assets give rise to distinctive legal risks and implications. In particular, arrangements involving these new assets, depending on the facts, can be subject to securities legislation as further discussed below. Failure to comply with applicable securities laws can result in significant penalties and enforcement actions. To avoid such consequences, it is critical that all participants in crypto markets understand how their activities will be treated under the current regulatory framework.

This update focuses on recent developments in the legal framework for securities in Canada as they apply to crypto activities and markets across the country.

Legal framework in Canada

There is no federal national statutory framework governing securities law in Canada since each province has its own securities regulator enacting specific legislation in the province. The CSA, however, generally acts as an umbrella regulatory body that includes provincial securities commissions and, among other things, is tasked with harmonizing the securities regulatory framework across Canada. Quebec’s Autorité des marchés financiers (AMF) and the Ontario Securities Commission (OSC), along with other provincial securities regulators, require compliance (unless otherwise specified) with CSA notices and other CSA regulatory initiatives on crypto assets.

Crypto assets such as Bitcoin, Ethereum and Tether are digital assets using distributed ledger technology, also known as blockchains. These blockchains are not controlled by a single central authority and are instead controlled by users through decentralized cryptographic consensus mechanisms. The functions, structures, governance and rights of these digital assets vary based on the different crypto products. With established crypto assets being increasingly traded, new crypto assets continuously emerging and securities regulators tightening control over these digital assets, demystifying the legal classification of crypto assets is more relevant than ever.

Nature of Crypto Assets

The main legal issue when crypto assets are involved is that of qualification and more precisely whether the relevant crypto assets constitute securities. The qualification of a particular crypto asset or crypto contract as a security is key in determining the applicable legal framework. The law, however, is still developing on this matter.

This question was addressed in 2018 by the CSA in Staff Notice 46-308 where it stated that determining whether a particular crypto asset is a security would be fact specific and depend on the particular circumstances of such crypto asset.4 Specifically, the CSA endorses a purposive interpretation of the investment contract test set out in Pacific Coast Coin Exchange v Ontario Securities Commission,5 which aims at investor protection. Staff Notice 46-308 sets out a non-exhaustive list of factors that may imply the presence of one or more elements of an investment contract, notably:

The issuer’s management retains a significant number of unsold tokens from the offering or “pre-mines” a significant number of tokens before they are publicly available;
Management makes statements suggesting that the tokens will appreciate in value, or compares them to other cryptocurrencies that have increased in value; and
Management makes representations that tokens are reasonably expected or marketed to trade on crypto trading platforms or to otherwise be freely tradeable in the secondary market.

In its 2019 Consultation Paper 21-402, the CSA acknowledges that some of the well-established crypto assets such as Bitcoin are not currently per se securities or derivatives, but rather have certain features that are analogous to existing commodities such as currencies and precious metals.6 However, the CSA confirms in the same document that most crypto assets offerings have involved a distribution of securities taking the form of investment contracts.

Consultation Paper 21-402 also stated that “[if] crypto assets that are securities and/or derivatives are traded on a Platform, the Platform would be subject to securities and/or derivatives regulatory requirements.”7 In the same vein when ruling on a relief application, the OSC stated in 2021 that while “bitcoin, ether and anything commonly considered a crypto asset, digital or virtual currency, or digital or virtual token […] are not themselves securities or derivatives,” companies involved in trading these digital assets would be subject to securities legislation.8

This generally means the foundations for the application of securities legislation based on the nature of the crypto assets involved arise in two distinct situations: (1) during the initial coin offering (ICO) of such crypto assets and (2) the trading of such crypto assets on CTPs.

Applicability of Securities Legislation

If a crypto asset constitutes an investment contract and is consequently categorized as a security, any offering of such crypto asset is subject to securities laws. That a crypto asset qualifies or not as a security is particularly important in the context of an ICO because the issuer is, unlike CTPs, directly offering the assets to its “customers.” Courts have simply applied the Pacific test in these situations.

For instance, in a 2018 decision Quebec’s Tribunal administratif des marchés financiers (TMF) ruled that the ICO of PlexCoin, a new cryptocurrency about to launch at that time, constituted investment contracts subject to the Securities Act in Quebec.9 This conclusion was upheld by the Court of Quebec.10 While there may be some agreement among securities regulators and courts in Canada that Bitcoin specifically is not a security, courts notably distinguished Bitcoin from PlexCoin on the basis that, unlike the former, a group of a few identifiable people was effectively managing PlexCoin as well as its underlying project.11

Outside of ICOs, the activity of trading crypto assets on CTPs may be captured under securities legislation. CTPs are financial institutions that offer users the ability to transfer, hold and exchange various crypto assets. In Staff Notice 21-327 (SN 21-327) in 2020, the CSA states securities legislation may also apply to CTPs that facilitate the buying and selling of crypto assets if the user’s contractual right to the crypto asset traded itself constitutes a derivative or security.12 As such, securities legislation could be considered as applying to CTPs unless:

(i) the underlying crypto asset itself is not a security or derivative; and

(ii) the contracts or instruments for the purchase, sale, or delivery of a crypto asset

(A) results in an obligation to make immediate delivery, and

(B) is settled by the immediate delivery of the crypto asset to the user according to the typical commercial practice.

Immediate delivery in the above context means the immediate transfer of ownership, possession, and control of the crypto asset from the CTP to the user without the user having to further rely on the CTP for use, enjoyment, and control of that crypto asset. Most trading activities on CTPs do not involve immediate delivery. For this, the CSA published Staff Notice 21-329 in 2021 to provide guidance on the specific securities legislation requirements applicable to CTPs according to their business models and on the discretionary exemptive relief that CTPs may obtain from the CSA under appropriate conditions.13

After publishing an update in August 2022 in which the CSA required CTPs in Canada to file for registration with their principal regulators and provide a pre-registration undertaking (PRU), the CSA clarified the legal framework applicable to CTPs in Staff Notice 21-332 (SN 21-332) in February 2023.14 The CSA confirmed that, “CTPs that operate in Canada and trade securities or derivatives are required to comply with Canadian securities law requirements, including registering with securities regulators” and it imposed an obligation on CTPs to provide a complete PRU to their principal regulators15.

We note that registration requirements have been enforced on CTPs up to this day. In 2022, following a notification for registration from the OSC preceding SN 21-332,16 the Ontario Capital Markets Tribunal imposed severe sanctions on an unregistered CTP, including a permanent market participation ban.17 In September 2023, the TMF imposed a $2 million administrative penalty and ordered the closing of the non-compliant CTP’s website based, among other things, on CSA staff notices 21-327, 21-329, 21-330 and 21-332.18 To determine that a breach of a Securities Act has occurred, both decisions stated, consistently with the CSA in SN 21-327, that crypto contracts were investment contracts within the meaning of same set out in Pacific and its Quebec equivalent.19

In addition, SN 21-332 clearly states that “CTPs are prohibited from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative.”20 Registered CTPs must establish policies and procedures to determine the nature of crypto assets. Likewise, if a registered CTP that is made aware of or informed that a regulator or securities regulatory authority views any crypto asset as a security or derivative, in accordance with the terms of registration and the exemptive relief, it must “stop permitting its clients to buy or deposit such crypto asset through a crypto contract.”21

Under the current framework, CTPs must be aware of developments in case law and legislative enactments by regulatory authorities in Canada and abroad on the qualification of any crypto asset as a security or derivative.

Specific Requirements for Stablecoins

With Staff Notice 21-333 (SN 21-333), the CSA imposed specific regulations on issuers and CTPs involved in trading crypto assets that are designed to maintain a stable value over time by referencing the value of a fiat currency or any other value or right (or combination thereof), called value-referenced crypto assets (VRCAs), which are also known as stablecoins. The CSA was already of the view under SN 21-332 that VRCAs could “constitute securities and/or derivatives in several jurisdictions.” Further guidance from the CSA in SN 21-333 to registered CTPs on VRCAs states, among other things, that:

registered CTPs had to contact their principal regulator as soon as possible on implementing the terms and conditions of the staff notice;
issuers of fiat-backed stablecoins were expected to provide an undertaking to the CSA by December 1, 2023;
registered CTPs had, by December 29, 2023, to stop offering VRCAs except those that reference Canadian or US dollars on a one-for-one basis and are backed by a segregated reserve of cash and cash equivalents, called fiat-backed crypto assets (FBCAs), and had to stop offering wrapped tokens; and
registered CTPs will need to stop offering VRCAs (1) for which the issuer has not provided the required undertaking and (2) that do not publish audited annual financial statements and monthly assurance reports on reserve levels, as of April 30, 2024.

Under SN 21-333, CTPs will also have by April 30, 2024, to comply with additional requirements for prescribed disclosures, disclaimers in marketing materials and updated know-your-product policies and procedures, including monitoring compliance of VRCAs. These guidelines, however, are temporary and the CSA has invited both issuers and CTPs to submit information and comments on VCRA regulations.22 We can therefore expect upcoming regulatory developments on stablecoins in Canada.

Analysis and future considerations

To summarize the current situation: the classification of relevant crypto assets is of utmost importance both for ICOs and trading on CTPs. The investment contract test set out in Pacific remains the applicable way to determine if certain crypto assets are considered securities. Categorization is not just a requirement for CTPs and issuers since the CSA also published guidance concerning investment funds seeking to invest in crypto assets.23 We expect this trend of “categorization” by official institutions to continue in 2024.
Until now, securities regulators in Canada have been proactive, aware of developments in case law and in crypto markets, and aptly adapting and clarifying regulations surrounding economic activities involving crypto assets in Canada. Simultaneously, Canadian courts have broadly aligned with US case law developments in distinctive local decisions. Some international organizations are also providing guidance on crypto assets ̶ the International Swaps and Derivatives Association has released its “digital asset derivatives” definitions24 and the International Organization of Securities Commissions released consultation reports on crypto and digital asset markets and on decentralized finance.25

Regulatory frameworks applicable to crypto assets in Canada are evolving rapidly. It is important that interested participants in crypto markets conduct careful and exhaustive due diligence well before engaging in any activities involving crypto assets, and assess (and receive legal advice) on all applicable compliance requirements. Participants and their advisors should also familiarize themselves with both the guidance provided by Canadian regulators and with case law developments in Canadian courts in order to ensure compliance with all applicable requirements.

The author wishes to thank law student Éden Bélanger for his help in preparing this legal update.

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Regulation

Cryptocurrency Regulation in Slovenia 2024

Published

3 months ago

1 August, 2024

Chain Feed Staff

Cryptocurrency Regulation in Slovenia 2024

Slovenia, a small but highly developed European country with a population of 2.1 million, boasts a rich industrial history that has contributed significantly to its robust economy. As the most economically developed Slavic nation, Slovenia has grown steadily since adopting the euro in 2007. Its openness to innovation has been a key factor in its success in the industrial sector, making it a favorite destination for cryptocurrency enthusiasts. Many believe that Slovenia is poised to become a powerful fintech hub in Europe. But does its current cryptocurrency regulatory framework support such aspirations?

Let’s explore Slovenia’s cryptocurrency regulations and see if they can push the country to the forefront of the cryptocurrency scene. My expectations are positive. What are yours? Before we answer, let’s dig deeper.

1. Cryptocurrency Regulation in Slovenia: An Overview

Slovenia is known for its pro-innovation stance, providing a supportive environment for emerging technologies such as blockchain and cryptocurrencies. Under the Payment Services and Systems Act, cryptocurrencies are classified as virtual assets rather than financial or monetary instruments.

Regulation of the cryptocurrency sector in Slovenia is decentralized. Different authorities manage different aspects of the ecosystem. For example, the Bank of Slovenia and the Securities Market Agency supervise cryptocurrency transactions to ensure compliance with financial laws, including anti-money laundering (AML) and counter-terrorist financing regulations. The Slovenian Act on the Prevention of Money Laundering and Terrorist Financing (ZPPDFT-2) incorporates the EU’s Fifth Anti-Money Laundering Directive (5MLD) and aligns with the latest FATF recommendations. All virtual currency service providers must register with the Office of the Republic of Slovenia.

2. Cryptocurrency regulation in Slovenia: what’s new?

This year, there have been several noteworthy developments in the cryptocurrency sector in Slovenia:

July 25, 2024: Slovenia has issued a €30 million on-chain sovereign digital bond, the first of its kind in the EU, with a yield of 3.65%, maturing on 25 November 2024.

May 14, 2024: NiceHash has announced the first Slovenian Bitcoin-focused conference, NiceHashX, scheduled for November 8-9 in Maribor.

3. Explanation of the legal framework for cryptocurrency taxation in Slovenia

Slovenia’s cryptocurrency tax framework provides clear guidelines for both individuals and businesses. According to the Slovenian Tax Administration, tax treatment depends on the status of the trader and the nature of the transaction.

Individuals: Income earned from cryptocurrencies through employment or ongoing business activities is subject to personal income tax. However, capital gains from trading or market fluctuations are exempt from taxation.
Society: Capital gains from cryptocurrency activities are subject to a corporate income tax of 19%. Value added tax (VAT) generally applies at a rate of 22%, although cryptocurrency transactions considered as means of payment are exempt from VAT. Companies are not allowed to limit payment methods to cryptocurrencies only. Tokens issued during ICOs must comply with standard accounting rules and the Corporate Tax Act.

4. Cryptocurrency Mining in Slovenia: What You Should Know

Cryptocurrency mining is not restricted in Slovenia, but the income from mining is considered business income and is therefore taxable. This includes rewards from validating transactions and any additional income from mining operations. Both natural persons and legal entities must comply with Slovenian tax regulations.

5. Timeline of the evolution of cryptocurrency regulations in Slovenia

Here is a timeline highlighting the evolution of cryptocurrency regulations in Slovenia:

2013:The Slovenian Tax Administration has issued guidelines according to which income from cryptocurrency transactions should be taxed.
2017:The Slovenian Tax Administration has provided more detailed guidelines on cryptocurrency taxation, based on factors such as the trader’s status and the type of transaction.
2023The EU has adopted the Markets in Cryptocurrencies Regulation (MiCA), which establishes a uniform regulatory framework for cryptocurrencies, their issuers and service providers across the EU.

Final note

Slovenia’s approach to the cryptocurrency industry is commendable, reflecting its optimistic view of the future of cryptocurrency. The country’s balanced regulatory framework supports cryptocurrency innovation while protecting user rights and preventing illegal activities. Recent developments demonstrate Slovenia’s commitment to continuously improving its regulatory environment. Slovenia’s cryptocurrency regulatory framework sets a positive example for other nations navigating the evolving cryptocurrency landscape.

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Regulation

A Blank Slate for Cryptocurrencies: Kamala Harris’ Regulatory Opportunity

Published

3 months ago

1 August, 2024

Chain Feed Staff

A Blank Slate for Cryptocurrencies: Kamala Harris' Regulatory Opportunity

Photo by The Dhage of Shubham ON Disinfect

As the cryptocurrency landscape continues to evolve, the need for clear regulation has never been greater.

Vice President Kamala Harris is now leading the charge on digital asset regulation in the United States, presenting a unique opportunity for a clean slate. This fresh start can foster innovation and protect consumers. It can also pave the way for widespread adoption across industries, including real estate agencies, healthcare providers, and online gambling platforms like these online casinos in the uk. According to experts at SafestCasinoSites, these platforms have advantages such as bonus offers, a wide selection of games, and various payment methods. Ultimately, all this increased adoption could push the cryptocurrency market forward.

With that in mind, let’s take a look at the current state of cryptocurrency regulation in the United States, which is a complex and confusing landscape. Multiple agencies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network (FinCEN), have overlapping jurisdictions, creating a fragmented regulatory environment. This lack of clarity has hindered innovation, as companies are reluctant to invest in the United States, fearing regulatory repercussions. A cohesive and clear regulatory framework is urgently needed to unlock the full potential of cryptocurrencies in the United States.

While the US struggles to find its footing, other countries, such as Singapore and the UK, are actively embracing the cryptocurrency industry with clear and supportive regulatory frameworks. This has led to a brain drain, with companies opting to set up in more hospitable environments.

Vice President Kamala Harris has a unique opportunity to change this narrative and clean up the future. cryptocurrency regulation. By taking a comprehensive and inclusive approach, it can help create a framework that balances consumer protection with innovation and growth. The time has come for clear and effective regulation of cryptocurrencies in the United States.

Effective regulation of digital assets is essential to fostering a safe and innovative environment. Key principles guiding this regulation include clarity, innovation, global cooperation, consumer protection, and flexibility. Clear definitions and guidelines eliminate ambiguity, while encouraging experimentation and development to ensure progress. Collaboration with international partners establishes consistent standards, preventing regulatory arbitrage. Strong safeguards protect consumers from fraud and market abuse, and adaptability allows for evolution in response to emerging trends and technologies, striking a balance between innovation and protection.

The benefits of effective cryptocurrency regulation are many and far-reaching. By establishing clear guidelines, governments can attract investors and traditional users, spurring growth and adoption. This, in turn, can position countries like the United States as global leaders in financial technology and innovation. Strong protections will also increase consumer confidence in digital assets and related products, boosting economic activity.

A thriving cryptocurrency industry can significantly contribute to GDP and job creation, which has a positive impact on the overall economy. Furthermore, effective regulation has paved the way for the growth of many companies such as tech startups, online casinos, and pharmaceutical companies, proving that clear guidelines can unlock new opportunities without stifling innovation. This is a great example of how regulation can alleviate fears of regressive policies, even if Kamala Harris does not repeal the current progressive approach. By adopting effective regulation, governments can create fertile ground for the cryptocurrency industry to thrive, driving progress and prosperity.

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Regulation

Think You Own Your Crypto? New UK Law Would Ensure It – DL News

Published

3 months ago

1 August, 2024

Chain Feed Staff

Think You Own Your Crypto? New UK Law Would Ensure It – DL News

The UK Law Commission has developed a bill that will address a situation of legal uncertainty.
The commission’s goal is to ensure that cryptocurrencies are legally treated as personal property.

UK law is not entirely clear whether cryptocurrencies can be considered personal property.

This is according to the UK Law Commission, which argues that while most investors assume that when they buy cryptocurrencies, they are “acquiring property rights in the same way as buying, say, a watch or a laptop.”

“As the law currently stands, this is not necessarily the case,” the respected legal body said in a new report on Tuesday.

The report was accompanied by a solution: a new bill to consolidate the legal status of digital assets as personal property.

This could be huge for the estimated 4.7 million Britons valued hold cryptocurrencies.

“This will allow the courts to determine a range of issues,” the report says.

If passed, the law would help clarify how cryptocurrencies are treated in cases of bankruptcy, estate planning or theft.

Flexible law

The commission is an independent body responsible for reviewing UK law. It began investigating whether English and Welsh property laws apply to digital assets in 2020.

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At the time, then-Chancellor of the Exchequer Rishi Sunak expressed ambitions to transform the UK into a cryptocurrency hub as Britons invested more.

In 2023, the commission decided that, in most cases, the legislation of England and Wales is sufficiently flexible to regulate cryptocurrencies.

This means that any asset, from Bitcoin to non-fungible tokens and some types of digital contracts, can be considered personal property, without Parliament having to write extensive new laws.

There was one small area of uncertainty, however: it was unclear whether cryptocurrencies fell within the two categories of personal property recognised under UK law.

These two categories are made up of tangible assets (cars, laptops, bags) and intangible assets (contracts, stocks, and debt).

The bill that will now go to Parliament to be converted into law aims to remedy this situation.

Without that clarification, courts may try to lump cryptocurrencies together with intangible assets, said Adam Sanitt, head of litigation, knowledge, innovation and corporate support EMEA at law firm Norton Rose Fulbright. DL News in March.

This is problematic because intangible assets are creations of the legal system, while cryptocurrencies are not.

“How the law treats digital assets, what rights you have over them, how you own them, how you transfer them to other people—that treatment is different, because digital assets don’t exist by virtue of the legal system, but independently of it,” Sanitt said.

The money in your bank account, for example, is a legal creation. The government could pass a law to cancel it.

However, if the UK passed a law banning Bitcoin, Bitcoin would not cease to exist.

Sanitt said: “That’s why digital assets are so important: neither the government nor the legal system can take them away from you.”

Contact the author at joanna@dlnews.com.

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Regulation

The Solution the Cryptocurrency Industry Needs

Published

3 months ago

1 August, 2024

Chain Feed Staff

The Solution the Cryptocurrency Industry Needs

The cryptocurrency industry has performed remarkably well since its inception, but now faces a critical hurdle that requires careful consideration and regulatory expertise to overcome. Despite the industry’s rapid growth and rate of global adoption, the gap between the industry and global regulation is only widening as new innovations break through into the public domain.

Although efforts are being made on both sides, regulators’ lack of familiarity with cryptocurrencies and the industry’s lack of regulatory expertise are hindering innovation in the sector. To address this issue, traditional financial institutions (TradFi) such as MultiBank Group have started venturing into the cryptocurrency sector.

The regulatory gap

Over the past decade, the cryptocurrency industry has grown dramatically as tech entrepreneurs and forward-thinking thinkers have founded a plethora of crypto platforms and protocols to push the boundaries of the space. The problem faced by these newcomers, who are often unfamiliar with the hurdles posed by financial regulators, can quickly overwhelm and stall operations.

On the other hand, regulators more attuned to TradFi systems may be equally stifled by the complexities of decentralization and blockchain technology. The unfamiliarity experienced by both innovators and regulators creates a stark regulatory divide between both sides, leading to misunderstandings and potential conflicts.

To overcome this lack of communication, a bridge must be built to bridge the gap, ensuring future stability for the cryptocurrency industry and clearer legislation from regulators.

Efforts to bridge the gap between industry

The gap between the cryptocurrency industry and regulators is slowly narrowing as efforts to regulate cryptocurrencies and Web3 space activities are gaining momentum. Specific regulatory actions are taking place in many countries, aimed at providing greater oversight of cryptocurrency transactions, cryptocurrency exchanges, and initial coin offerings (ICOs).

Despite being a positive step in the right direction, these new regulations can differ significantly between jurisdictions around the world. This fragmentation results in a regulatory environment filled with obstacles, bottlenecks, and varying requirements and prohibitions. As cryptocurrency companies and TradFi institutions attempt to navigate the minefield, the regulatory maze becomes increasingly convoluted.

TradFi institutions like MultiBank Group are working to solve this problem, as one of the largest financial derivatives institutions in the world with over 12 licenses across all continents. Founded in 2005, the Group has an impeccable and trustworthy reputation globally, extensive expertise in financial regulation and has now ventured into the cryptocurrency space via MultiBank.io.

MultiBank.io: TradFi Excellence in the Crypto Space

Expanding into the cryptocurrency space via MultiBank.io has enabled MultiBank Group to provide regulatory clarity and trust to the digital asset industry. With a substantial daily trading volume of $12.1 billion, the timely decision to enter the cryptocurrency space has the potential to set regulatory precedents and standards for years to come.

By helping to develop sensible and well-considered regulations, MultiBank.io’s established reputation allows the company to communicate effectively and clearly with regulators. Unlike others in the industry without regulatory expertise, MultiBank.io facilitates the Group’s commitment to rigorous regulatory standards, the scope of oversight and establishes the necessary transparency.

The company’s approach ensures that regulatory licenses are pre-acquired, compliance is met globally without jurisdictional barriers, and transactions remain secure at all times. By helping to create robust regulations that are both clear and innovation-friendly, MultiBank Group looks forward to standardizing the entire cryptocurrency industry for other potential innovators.

One of the biggest challenges in establishing a clearly constructed bridge between regulators and the cryptocurrency industry is effective communication. By leveraging its institutional background TradFi and acting as an intermediary with regulators, MultiBank Group is able to translate the needs of the industry to those who shape it.

This quality of mediation is essential to ensure that regulation helps develop essential technological advances rather than hinders their establishment and growth. Through the lens of TradFi when looking at the complexity of the cryptocurrency industry, MultiBank Group is able to deconstruct unfamiliar crypto arguments for regulation and create a safer and more secure space.

Where TradFi and Crypto Meet

Regulations are crucial for traders, investors, and everyday users of crypto platforms and their safety when participating in crypto markets. While strict regulations are necessary for stable market integrity, innovation should still be considered, something MultiBank Group considers a priority.

Where TradFi and cryptocurrencies converge, the Group is there to provide a balanced approach to ensure promotion for both the cryptocurrency industry and regulators seeking to protect both retail and institutional investors. This balance is critical to maintaining a thriving space where cryptocurrency innovation can thrive without compromising the security of user funds or data.

As more TradFi institutions like MultiBank Group enter the cryptocurrency space with ever-expanding expertise in regulatory understanding, the future of the industry is increasingly encouraged. The financial freedoms of the cryptocurrency space coupled with regulatory oversight for financial security will be the guiding lights for the future success of the entire cryptocurrency industry.

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