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- 1 Regulating the cryptocurrency Market by regulatory frameworks.
- 2 The collapse of FTX in 2022 made the need for smarter regulations.
Regulating the cryptocurrency market by the countries shows the intention of the government to manage the economies. The countries are taking different perspectives on the tasks, depriving transparency about crypto regulation. After the fall of FTX in 2022 due to bankruptcy and lack of liquidity, the need for smarter regulations is fetched.
Cryptocurrency Market Regulation Framework in Different Countries
Crypto Regulation in the United States has taken a fundamental approach to regulating crypto. A new framework will be put in place that will permit the industry to flourish. U.S. regulators treat crypto as security, which is why instead of regulating cryptocurrencies, the U.S. has attempted to control crypto platforms.
The U.K. is another country where crypto regulations are on speed. Prime Minister Rishi Sunak issued a plan of action that reveals a way to make the U.K. a global crypto technology hub. The most important part was his proposal for stablecoins, allowing them to be received and accepted as payment. In a sense, to scale up the country.
Crypto Regulation in Canada also wants more clarity in the crypto industry. The first rules for crypto were released in 2022. Sources reveal that they are treating industry as a commodity. Due to regulatory demands, now bankrupt crypto exchange FTX and others pulled out of Ontario.
In Germany, crypto regulation by the country is much more transparent. BaFin, the regulatory body, has proposed a set of goals till 2025, highlighting the increased regulation of DeFi and safeguarding consumers against unknown risks. Germany’s parliament in May 2022 made the sale of purchased bitcoin and ether tax-free after one year for private individuals.
Brazil’s central bank launched a main project to create a digital real with public use expected at the end of 2024. This is an actual digital project in terms of regulation. For this reason, it is very flexible in grasping the new technology and enforcing the recent regulation on deposits. Thus, they make the big banks the ones who provide the stablecoins besides bypassing the banks.
Recent reports suggest that countries are intended to see cryptocurrencies as a broader trend. It will diversify the financial market infrastructure and serve to meet current and future payment needs. Strong cryptocurrency market regulation by countries mostly highlights the growth of the industry. At the same time, more clarity is needed by the countries on this regulation.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
