The recent price drop in the crypto market and several other macroeconomic factors are a great deal of concern for many crypto stakeholders. Its usage and transparency of transactions impact the traditional financial system.
Blockchain technology aims to empower every person, especially the bankless, to have free and total control of their funds. However, it hasn’t been without its problems, as fraudsters are also on the prowl looking to exploit unsuspecting individuals.
Uniform Cryptocurrency Regulations Worldwide
Some prominent figures in the financial industry claim that if this new financial system is left unchecked, it poses a great deal of danger to everyone. Such risks include crypto project fraud and scams.
In an interview with the Financial Times, EU’s financial services commissioner, Mairead McGuiness, said, “there’s a need for other players to have crypto legislation, perhaps differently, but with the same objective. We need to consider having a global regulation of crypto.”
Last week, US Senator John Hickenlooper suggested that the US financial watchdog need to “take quick action” in performing oversight functions over the new asset. India’s Finance Minister, Nirmala Sitharaman, has made similar calls recently. Meanwhile, some countries have started creating their crypto regulatory laws.
The EU has drafted the Markets in Crypto-Assets (MiCA) framework, while the US Congress is yet to pass a bill requiring the legalization of a similar framework. The UK’s Financial Conduct Authority (FCA) ‘s Chief Executive, Nikhil Rathi, stated that the financial watchdog has “rigorously applied new money-laundering standards” and warns citizens of potential risks.
The announcement coincides with the Financial Stability Board’s (FSB) ongoing review of the global regulations for the finance sector. It proposed nine crypto regulations hoping the G20 countries adopt them this week.
The US government is stuck between two extremes. It’s working on creating regulations for cryptocurrencies under the Biden administration. But it is unwilling to block cryptocurrency transactions outrightly. It believes that doing so would stunt the growth of a possibly profitable market.
Nevertheless, it is adamant about not giving up on policing illicit cryptocurrency payments and funding cyberterrorism with cryptos.