The increased regulation of the crypto industry in recent times could become the norm in the future.
Over the past few years, regulators around the world have increasingly focused on the crypto industry, providing a little more clarity in grey areas and punishing cross border violations. Although crypto-currencies are thus increasingly regulated, the attitude of the supervisory authorities towards them has hardly changed, at least that is what Alex Wearn, CEO and co-founder of the crypto exchange IDEX, thinks.
„The regulation of crypto currencies itself has not really changed in recent years,“ Wearn told Cointelegraph. He adds: „Rather, law enforcement has increased in this area, which helps companies and entrepreneurs understand what they can and cannot do.
So the crypto industry, long considered a kind of „Wild West“, has matured in recent years. During the great hype of 2017, the crypto-markets went through a phase of excessive speculation, which reached a questionable peak with the Initial Coin Offerings (ICO), a method of raising capital for crypto-companies. Reason enough for the supervisory authorities to pay more attention to the industry.
Meanwhile, headlines on crypto regulation are almost daily, as government intervention has been increasing recently. A prominent example in recent weeks is that the US Department of Justice and the Derivatives Trading Commission (CFTC) have brought charges against the large crypto trading platform BitMEX. Away from criminal prosecution, however, the US authorities also clarified some time ago what concerns the safekeeping of crypto currencies by banks. In addition, many governments are now trying to launch their own central bank digital currency (CBDC) in order to possibly get involved themselves.
„Crypto-regulation is still in its infancy, but over the past year we have already seen great progress in the form of crypto-taxation and central bank digital currencies,“ says Sasha Ivanov, CEO and founder of the block-chain platform Waves, assessing the latest developments. And further:
„Regulation will be an important issue for the crypto industry next year. It is only a matter of time before more and more regions have to comply with their regulatory requirements. But the right kind of regulation is a good thing for the industry. Waves wants to be at the forefront of the emerging dialogue and help shape the future regulation of the crypto industry“.
In recent weeks, governments and authorities in several countries have already presented plans and guidelines for the regulation of crypto currencies.