As cryptocurrencies enter a new year after hitting new highs over the past year, new changes await, among which regulation tops the list.
Jeffrey Wang, Amber Group’s Head of Americas, said that regulation is the biggest backlog for crypto and is Blockchain, and it could continue to put pressure on cryptocurrencies.
However, Wang is optimistic that the US Securities and Exchange Commission (SEC) will move forward with more explicit crypto guidelines.
“We welcome the arrangement,” he said. “We welcome the guidelines so everyone can be on a clear playing field.”
Wang expects more regulation in 2022, especially for stablecoins.
“I think we’re going to have more retail investors learning about stablecoins, understanding how they work, trading them, understanding that you can get more returns from a stablecoin than fiat cash — and I think that’s it Reason why it’s becoming more regulated, and I applaud it.”
Cryptocurrency regulation has the potential to allay traders’ doubts about the Federal Reserve cutting stimulus and raising interest rates. Traders remain concerned about what will happen to stock markets as interest rates rise and stimulus dries up.
talk of regulation
As the digital asset industry matured into a larger asset class, regulatory talks for the past year have centered around cryptocurrency.
Due to the volatile nature of crypto, many large corporations or corporations and even governments lacked the confidence to enter the industry over the past year. Experts believe regulation will dampen volatility and bring peace of mind to the broader markets, leading to greater investment in the industry.
However, doubts remain as possible regulation could start to affect the decentralized nature of cryptocurrencies to curb the growth and development of the space.
Stablecoin – which are assets pegged to the value of a denominated currency – has emerged as the forerunner in real-world adoption and use cases.
Regardless of potential volatility, stablecoins have shown that their locked value allows them to be reliable safe haven assets.
However, according to Federal Reserve Chairman Jerome Powell, stablecoins also need to be properly regulated in order to be used on a larger scale by global corporations and governments.
“Stablecoins can certainly be a useful, efficient consumer part of the financial system if properly regulated,” he said.
While countries like China have taken a tough stance on crypto by banning it, regulation has become a major concern for many economies worldwide.
According to a December 13, 2021 Blockchain.News report, the South African Financial Sector Conduct Authority (FSCA) is on track to unveil a comprehensive regulatory framework to protect consumers coming from the digital currency ecosystem from fraud.
While in Turkey, following confirmation that long-awaited crypto regulation is ready by President Recep Tayyip Erdoğan, stakeholders in the country want the regulations to be implemented as soon as possible, Blockchain.News reported.
In Asia, India has emerged as a major hub for crypto transactions, and the country looks forward to regulating them.
On December 03, 2021, according to a report by Blockchain.News, citing a cabinet note from Local news channel NDTV, revealed that the proposed cryptocurrency law proposes regulation of private cryptocurrency rather than banning it, Confirming the earlier speculation about the concerted efforts of the Indian Parliament and Government to regulate the developing countries of cryptocurrencies.
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