Slow cryptocurrency regulation

The regulatory march of the Universe, moving from collapse to collapse, is rather slow. In the United States, we are still defining cryptocurrency.

This year, the cryptosphere is experiencing one of the worst adjustments in its young history. In addition to the heavy losses suffered by investors, the shocks are more systemic and felt along the entire chain leading to mining.

First of all, the accident once again highlighted the fragility and shortcomings of an ecosystem exposed to all risks. This makes regulation more than necessary, a foundation that, in particular, will help establish confidence in the industry and attract more institutional investors.

What’s more, this week the crypto universe was happy to see giant BlackRock defy its initial resistance to open the way for cryptocurrencies for its institutional clients, starting with bitcoin. The world’s largest investment management company with $10 trillion in assets has connected its technology platform Aladdin to the Coinbase exchange.

The Aladdin network has approximately 55,000 investment professionals who claim US$21.6 trillion in assets under management, or 4% of global assets, writes GlobalBlock Digital Asset Trading.

BlackRock, which has long associated digital currency with fraud and money laundering, now understands that its institutional clients are increasingly interested in entering the digital asset market and are focusing on ways to effectively manage the operational lifecycle of these assets, continues GlobalBlock. The digital asset brokerage specialist also cites the results of the EY report, which says that almost a quarter of fund managers plan to increase their participation in crypto assets over the next two years.

Small adjustment steps

But there are still small steps on the regulatory scene in the United States, to the dismay of the judiciary. Only recently have issues related to the cryptosphere received the full attention of the US Congress. Supporters of the digital currency welcomed the introduction on Wednesday of a bipartisan bill proposed by leaders of the Senate Agriculture Committee.

The latter, which oversees the Commodity Futures Trading Commission (CFTC), wants to give the CFTC “exclusive jurisdiction” over cryptocurrency transactions under the Commodity Law.

If adopted, the digital currency would be defined as a “digital good” rather than a security. The CFTC, and not the Securities and Exchange Commission, will also be responsible for overseeing transactions and forcing registration of digital goods platforms. And this, to the greatest wish of the industry, given that the CFTC
more favorable.

We’re there south of the border, 13 years and three major crashes, after a dozen scams and Ponzi schemes and hundreds of billions of dollars have evaporated.

Meanwhile, Bitcoin traded below $23,000 on Friday, down 67% from its November 2021 high in dollars, still only at its third peak of $3,000 billion set in November.

Regulation map

Product comparison platform Hello Safe has become interested in the legalization of cryptocurrencies in countries around the world. It offers a map with the latest update for July 2022. We see that in July last year, 99 countries (50.8%) allowed the use of cryptocurrencies.

In Canada, transactions through cryptocurrencies are fully authorized. The use of these currencies is legalized in 27 EU countries. After Europe, America is the second continent with the most countries allowing cryptocurrencies, with 51.4% of them (18 countries). El Salvador and the Central African Republic are the only two countries in the world that have recognized bitcoin as an official currency.
sums up Hello Safe.

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