What Is the Cryptocurrency Regulation Status around the World?
21st July 2022
Over the past several years, numerous issues associated with the expanding cryptocurrency business have been uncovered. Policymakers around the world have little choice but to incorporate virtual money into existing legislation. It seems that only rigid regulation can mitigate security risks, protect customers from unpredictable losses, and prevent financial crime.
While some countries adopt a welcoming attitude that encourages more crypto firms to enter their regional market, others focus on reducing associated risks or prohibiting access to digital currency entirely.
It may be difficult to comprehend the global approach to cryptocurrency regulation. That’s why we gathered information on the biggest crypto markets to present an overview of their most current regulations.
Should Cryptocurrency Be Regulated?
People’s interest in digital currency has been growing for quite some time.
The increase in demand encouraged many new crypto startups to join the market. Soaring public interest and rapid market growth did not come without challenges for regular clients and regulatory authorities.
Cryptocurrencies’ promise of anonymity may be lucrative to some people, but authorities worldwide have expressed concern about illicit uses of virtual currency, such as money laundering, terrorism financing, and financial fraud.
Another risk involved in the crypto industry is security. There are crypto wallet providers that don’t assess the security risks of their platforms efficiently, thus potentially exposing their clients to data theft.
The challenges faced by the industry may only continue to grow. Thus, regulatory bodies are getting more keen on regulating crypto providers to ensure a safe environment. For instance, the European Parliament recently finalized a cryptocurrency regulation that would encourage providers to enact safety checks and warnings, implement efficient security standards, and protect their clients. Regulators are also extending the current AML and CTF regulations to the crypto industry. Some even impose a travel rule – ending the anonymity pertaining to virtual currency transactions.
Read more about the crypto regulations for each country on the Ondato blog here.