Regulation

What Crypto Regulation May Bring in 2024

Published

6 months ago

8 June, 2024

What Crypto Regulation May Bring in 2024

The CoinDesk policy team is scattered throughout the world; in the final edition of this newsletter, each member explains what they’re watching in 2024 in the world of crypto regulations. Happy holidays, and we’ll see you next year!

You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Click here to sign up for future editions.

As is now this newsletter’s annual tradition, CoinDesk’s regulation team explains what we’re paying attention to in 2024.

Next year will be busy. Crypto is having a resurgent moment, and this past year’s conviction of Sam Bankman-Fried and guilty plea from Changpeng Zhao, the potential approval of a spot bitcoin exchange-traded fund and just a general upswing in the market are sure to have a lot of people feeling hopeful about this industry’s future. But lawmakers and regulators aren’t likely to spend less time on crypto issues either.

Nikhilesh De: There’s no rest for the weary. Though a lot happened in 2023, including an entire criminal trial, next year promises to be much busier. I’m interested in five main categories of events or activities that may play out next year: Court cases, elections, regulatory agency actions, legislation and the broader crypto market.

Obviously the U.S. Securities and Exchange Commission has had a pretty active year, with lawsuits against Coinbase, Kraken and Binance/Binance.US over the past 12 months (really the past seven). While the regulator’s case against Ripple shows us that it may take a while for these cases to resolve, we’ll still start seeing how the courts view the arguments being made.

The Commodity Futures Trading Commission will likewise have an interesting role next year. CFTC Chair Rostin Behnam has said on a number of public occasions that he’s proud of how many enforcement actions his agency’s taken, and that’s not likely to let up next year.

Beyond that, there’s also the national security and criminal cases. USA v. Avi Eisenberg, Roman Storm, Alex Mashinsky, Changpeng Zhao and even Samuel Bankman-Fried (round 2) will see federal prosecutors raise some interesting legal questions for the crypto industry.

Bankman-Fried and Zhao both have sentencing hearings coming up in the first half of the new year. Zhao is looking at 10-18 months or so when he’s sentenced in late February 2024 after pleading guilty to one charge of violating the Bank Secrecy Act as the former CEO of Binance.

Bankman-Fried, of course, faces a much longer sentence after a jury convicted him on seven different charges in early November. He also faces a potential second trial. We may not know for a few more months whether the DOJ intends to proceed on the second trial, which is currently scheduled to begin in early March. If prosecutors move forward, Bankman-Fried’s sentencing, currently set for later in March, will probably be delayed.

The Eisenberg and Storm cases will be more interesting, just from the legal theories we’re going to see discussed.

Eisenberg, who was arrested a year ago today, is accused of commodities manipulation and fraud after executing a “trading strategy” that resulted in Mango Markets losing $114 million. His trial is currently scheduled for April.

Storm, meanwhile, faces charges of conspiracy to operate a money transmitter, facilitate money laundering and sanctions evasion tied to his work as a developer on Tornado Cash, a crypto mixing service.

The bankruptcies are moving closer to resolutions, and we’ll continue watching them to see what exactly these companies’ former users will get back.

We’re going to be watching (and reporting on) elections in the U.S., European Union, India, Indonesia and possibly the UK next year. Each of these elections will be important – even if the winners don’t have explicit positions on cryptocurrency issues, the department or ministry heads they appoint and the laws they push for will obviously have an impact on the crypto sector.

In the U.S., we’re once again looking at elections at every level of government, from state and local issues to the House of Representatives and Senate to the office of the U.S. president. Campaign season is already in full swing, but within the next few weeks we’ll start to see primary candidates dwindle.

It’s still not clear to me that crypto will really be an issue for lawmakers in the U.S. beyond being generic talking points but we’ll see.

No major crypto legislation advanced out of Congress this year, though stablecoin and market structure bills made more progress than any previous legislation. We’ll likely see these bills continue to be discussed this upcoming year, though of course the election will be a major wrinkle.

The people to watch are Congressman Patrick McHenry (R-N.C.), the House Financial Services Chair who’s not running for reelection; Congresswoman Maxine Waters (D-Calif.), the House Financial Services Ranking Member; Senator Sherrod Brown (D-Ohio) the Senate Banking Committee Chair, who is running for reelection; and Senator Tim Scott (R-S.C.), who briefly ran for president.

McHenry has already told Politico he intends to push forward with crypto legislation during his final term. Still, he’s up against a clock: At some point, Congress is going to be more focused on elections and campaigning than on their work in D.C.

Similarly, we’ll see if federal regulators engage in further rulemaking, as well as which outstanding proposed rules they adopt.

Of course, we can’t ignore the fact that prices are up, people are booking paper returns (and some actual returns) and that there’s a lot of excitement around. Whether things are different this time in terms of resilient platforms or market structures, and whether people are better protected against losing billions of dollars, will both affect how regulators worldwide look at this industry.

This time last year, I predicted that questions about user data on bankrupt platforms will get more airtime; that the SEC would take more actions, that I wouldn’t expect much in terms of legislation and that regulators would have a reaction to 2022’s collapse. I think some of these predictions held up pretty well: The SEC sued a number of exchanges and legislation advanced out of committee but has yet to clear any major body of Congress. I don’t think enough time has passed for us to clearly see the regulatory response to the collapse of FTX and other companies, but lawmakers are clearly thinking about these issues.

Sandali Handagama (EMEA): In my heads-up for 2023, I said we’d hear quite a bit about global norms for crypto. Well, the watchdogs really came through – and with gusto.

Case in point: crypto’s theoretically less volatile subset, stablecoins, are getting some global-level tough love. International securities regulator IOSCO in its policy recommendations rejected industry pleas for stablecoins to receive special treatment. Banking regulator BCBS followed that up with plans to tighten requirements for stablecoins to qualify as safer assets for bank exposures. We’ll see a lot more tweaking or introducing of new standards for crypto and stablecoins next year.

If 2023 was the year of crypto regulation, 2024 will see some of those rules in action. The European Union’s landmark Markets in Crypto Assets (MiCA) regulation is set to come into effect next December after its finalization this year. In 2024, companies and EU member states will race to become MiCA compliant. As my former colleague Jack Schickler predicted, companies have indeed been playing some hopscotch, trying to pick the best EU country to settle down in time for the rules.

I’ll also be watching the EU’s parliamentary elections in 2024. Although MiCA’s through, there are plenty more relevant frameworks in the making, including one for the metaverse and another for a digital euro.

We’ll get a better feel for fresh 2023 regulatory regimes in aspiring crypto hubs Dubai and Hong Kong. We’re also expecting more legislation from several jurisdictions including Turkey and South Korea.

Let’s just say that, going into a new year and a new bull run, regulators worldwide have tried to make sure to be in a better position to tell crypto how to stay in line. But my most confident prediction is that campaigning by central banks and standard-setters to convince the masses that central bank digital currencies (CBDC) are better for payments than private crypto will continue into next year. Safe bet.

Jesse Hamilton (U.S.): From the vantage point of Washington, D.C., my predictions for crypto’s 2024 will be wholly unsatisfying for those eagerly awaiting progress.

The best the industry can likely expect is some resolution in its court clashes with the Securities and Exchange Commission (SEC), though the agency is probably going to hammer the sector with targeted new policy. We also have a strong chance of seeing a crypto legislation surge set a new high-water mark in 2024, with passage in the House of Representatives of some digital assets regulation.

Take my predictions this year with some caution, though, because last year I’d suggested the “future could be decided” in 2023 on whether crypto could move forward in the U.S. as a widespread, commonly exchanged asset. In fact, nothing much was decided — except that the SEC isn’t always right, according to federal judges in multiple cases.

Though I’d predicted that Congress would probably take months to “find common ground on crypto,” that ground was never located on the Senate side. A prediction about 2023 would have been better to have read: Expect policy chaos, legal clashes, massive enforcement actions and a small amount of legislative progress.

While an outgoing Rep. Patrick McHenry (R-N.C.), the chairman of the House Financial Services Committee, may find a way to set his crypto legacy by winning House passage for crypto stablecoin regulation, the Senate has been reluctant about doing business on digital assets bills. Anybody who can see into the heart of Sen. Sherrod Brown (D-Ohio), the chairman of the Senate Banking Committee, and read his crypto intentions, please let me know.

While sideshows like the central bank digital currency (CBDC) debate continue, the most impactful policy moves from the U.S. government could be in finalization of truly consequential rules from the SEC and the Internal Revenue Services that would specifically regulate aspects of the U.S. industry for the first time. More than one of these initiatives spell devastation for decentralized finance (DeFi) if they emerge as they were proposed.

As 2024 looms, the industry is finding it more pleasant to focus on the likelihood of a spot bitcoin exchange-traded fund (ETF) getting an SEC nod. But the SEC has multiple crypto rules loosely targeted for April, according to its agenda, including one that would expand the definition of exchanges to include crypto platforms and another that would order investment advisers to keep their customers’ crypto assets with “qualified custodians” — not the current range of industry exchanges, according to SEC chief Gary Gensler. (Though these rules could eventually be challenged in court, just like everything else.)

The takeaway: If you enjoyed 2023 (sicko!), you’ll probably really like 2024.

Amitoj Singh (India): The world’s largest democracy goes to elections next year and by June 2024, based on current state election trends and polls, Narendra Modi will return as India’s Prime Minister for a third term. With it, the same policies represented by his party, the Bharatiya Janta Party, are likely to be retained. That would mean India’s controversial and stiff crypto taxation policy may not see a change in 2024. A think tank study supports reducing the taxes – a 30% tax on crypto profits and a 1% tax deducted at source (TDS) on all transactions. The crypto industry has advocated for changes too. But Modi’s government hasn’t given any indication of wanting to change that policy. As for a crypto or Web3-specific legislative bill, Jayant Sinha, one of India’s senior lawmakers from Modi’s party overseeing the financial evolution of the nation, has already said that won’t happen anytime soon and perhaps not until mid-2025. As a result, in 2024, India’s crypto enthusiasts may not have much hope for a reduction in taxation policies, but they will be looking out for piecemeal measures for the Web3 and blockchain industry to be folded into the nation’s further push toward digitizing its future. Modi’s government has already made encouraging steps for the space while maintaining a separate stiff policy for crypto assets. I’ll be keeping an eye on two separate budget presentations in India’s parliament, one before the election and one after, to see if India’s prioritization of framing a crypto framework for the globe as the president of the Group of 20 (G20) nations in 2023, becomes its own domestic legislative priority. As suggested in 2022, I watched the Modi government’s budget presentations in 2023 and its G20 work closely. I also watched whether the Indian central bank’s hopes to launch a full-scale central bank digital currency (CBDC) would come true. They didn’t. However, wholesale and retail pilots have shown promising results and their progress, including concerns around privacy, maybe the focus of 2024.

Camomile Shumba (UK): Last year I said that the U.K. government needed to provide more clarity on how it wants to regulate crypto. Now a year on I can say that the government’s vision for the burgeoning sector has become clearer.

A lot of legislation has passed, meaning the U.K. is moving forward with its plans to be a crypto hub – a desire that according to the U.K. government comes hand in hand with regulation.

The Financial Services and Markets Act (FSMA) – which gave regulators more power over the crypto sector – passed into law in June along with a crime bill that will help law enforcement agencies seize crypto.

The FCA enforced its promotions rules for crypto – which meant that overseas firms could not reach out to U.K. clients without the FCA’s greenlight but this led to crypto firms leaving the country. Firms will be looking to adapt to these rules.

The U.K. will continue to struggle with managing its crypto hub ambition with the FCA’s tendency to be strict. Plus, the U.K.’s staged approach where it deals with one aspect of crypto at a time means that different aspects of the crypto market will be left in limbo until regulations come out. The digital pound consultation results are still yet to come out.

With the election likely to occur next year – and Labour being a popular candidate – another question on everyone’s lips is – if Labour were to take over – what would they change?

Elizabeth Napolitano (U.S.): The cryptocurrency industry has a busy (and seemingly brighter) year ahead of it. Shortly after ringing in 2024, we can expect to see the SEC approve its first swath of spot bitcoin ETFs, which could impel institutional investors to pour big bucks into the digital assets space. News of the approvals may also stir up public interest in virtual tokens, pushing them further from the fringes of finance to center stage.

Across the Atlantic, next year will also prove an exciting one for crypto. In late 2024, we’ll finally see MiCA, the European Union’s (EU) regulatory framework for crypto, take effect. The legislation effectively bans algorithmic stablecoins (think: DAI), which are often used as collateral for borrowing and lending across decentralized exchanges (DEXs) such as Curve Finance and Uniswap. This facet of the framework will likely have second-order effects on the growth of decentralized finance (DeFi) across the EU’s 27 member states, stymieing Europeans’ engagement in a vastly profitable, if perilous, sector of the crypto industry.

Editor’s note: Are you looking out for something specific next year at the intersection of regulations, politics and crypto? Shoot me a note with your name or handle and interest in the space and your note may appear in a future edition of State of Crypto.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at nik@coindesk.com or find me on Twitter @nikhileshde.

You can also join the group conversation on Telegram.

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Regulation

Cryptocurrency Regulation in Slovenia 2024

Published

4 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

4 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

4 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

4 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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