Crypto parliamentary panels and superintendent positions move towards regulatory clarity

[ad_1]

News summary: The US at state level and UK at national level continue to move closer to clearer regulation of cryptocurrencies.

A bipartisan group of UK lawmakers have formed the Crypto and Digital Assets Group, creating a forum to draft regulation for the digital asset industry. The parliamentary panel is supported by CryptoUK, the digital assets trade association. The New York State Department of Financial Services (NYSDFS) has appointed an Assistant Superintendent of Virtual Currency. The department said the position will focus on virtual currencies, digital currencies, blockchain, distributed ledger technology, and other related products and technologies.

Crypto ambivalence reigns: The price of Bitcoin fell to its lowest level in three months Monday morning after falling for seven consecutive days. This rapid fall means that many see it as a risky asset.

This perception is not helped by comments such as Bank of England Governor Andrew Baileys warning banks to be especially careful in handling crypto until regulators roll out new ones. rules. Blockchain analytics firm Chainalysis reported that crypto-based crimes hit an all-time high in 2021. Users lost more than $ 14 billion, up from $ 7.8 billion in 2020. But the report also concluded that the growth in legitimate cryptocurrency use over the past year has far outpaced the increase in crypto-related criminal activity. While the US and UK grapple with regulation, 51 countries have issued full or near-total bans on crypto manipulation, most notably China.

What’s at stake: The volatility of cryptos and the uncertain and still developing regulatory framework surrounding it is delaying its adoption on a larger scale. Many large institutional players, including pension funds, are holding back from getting involved until they see more regulatory clarity.

More than half of multinational business executives want regulatory clarification before committing to crypto and blockchain technology. The regulations will also reassure suspicious consumers of the legitimacy of digital assets and alleviate fears that they are risking their nest egg in a lawless Wild West.

In the UK, MP Lisa Cameron, chair of the new Crypto and Digital Assets group, says the framework must support innovation and ensure the UK remains an attractive destination for innovative companies looking to set up and do business. develop. But she also mentioned making sure consumers understand the risks and are protected from the risk of economic harm posed by fraud and scams. “

According to the UK’s Financial Conduct Authority, around 69% of traders under 40 who invest in cryptocurrencies mistakenly believe they are regulated.

In the United States, loopholes at the federal level have prompted state regulators to take over. New York State passed regulations earlier than most: As of 2015, anyone engaged in virtual currency trading activity involving the state or its residents must obtain a BitLicense.

The application is neither easy nor straightforward, and the state is being diligent: NYSDFS has granted more than 21 licenses, but some virtual currency players have refused to enter the market. The New York attorney general’s office is also scrutinizing the industry under the auspices of Martin Law. Those who deal in cryptos and are not a bank or trust company must register with AG’s Investor Protection Office. Many companies doing business in New York understand that they need to be both Bit licensees and Martin Law enrollees, but fear the entities will be working against the grain. The role of deputy superintendent must reconcile the positions of the two offices. The stakes are high: Miami is at odds with New York over carrying the U.S. crypto crown and has the benefit of looser regulation and lower taxes.

[ad_2]