Cryptocurrencies are a new reality and although it has been banned many times, in many geographical areas, its architecture is such that it eventually overcomes any limitations in its operation. But that does not mean it has to work without rules.
Singapore is one of the few countries that since 2019 has clear legislation on cryptocurrencies so that it becomes a friendly place to welcome people and companies in the cryptocurrency industry, which is a target that largely succeeded. On the other hand, there are several countries that do not have a clear legal framework for cryptocurrencies. However, the approach that the crypto market is out of control is rather strict. It is obvious that there are many regulations in place, but the problem is that they are scattered. The reality is that in the same way that illegal actions are handled for any currency, the same laws apply to cryptocurrency users. There is no exception. If the authorities find that the users of cryptocurrencies are illegal, they will suffer the consequences of the law.
For companies that want to engage in cryptocurrency transactions legally, they must obtain permission from the authorities and comply with the rules as they would any other financial institution.
The rules in the crypto market are legitimate. Exchanges must be subject to rules in order to avoid fraud.
The regulations are welcome as at the end of the day they will strengthen the market, further legitimize the crypto market and remove a significant part of the existing insecurity. Especially if more rules on the derivatives market are created, the sceptics’ argument that the market is being manipulated will be greatly weakened, paving the way for the approval of Cryptocurrency ETFs.
Developments in the cryptocurrency market are moving rapidly as it is indicative that the State of Wyoming in the USA gave Kraken the first official banking license in the world for digital assets, while the Swiss Stock Exchange received approval for the operation exchange and depository of cryptocurrencies, indicating that we are entering an environment with more security and transparency in cryptocurrency markets.
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