Crypto needs regulation but should do the right thing: Report and database

Crypto needs regulation but should do the right thing: Report and database – Mail Bonus

Regulatory attitudes towards cryptocurrency are constantly evolving, often at a slower pace than the cryptocurrency industry itself. Institutions and the general public will not seriously consider working with cryptocurrencies without clear and comprehensive regulation. Furthermore, the industry suffers from widespread fraud, phishing and burglary which very often have no legal consequences. This increases the audacity of the unrighteous and enhances the image of cryptography as a platform for shadowy characters.

Download the full report here, along with charts and infographics

In a new report, Cointelegraph Research provides an overview of regulations regarding stablecoins, nonfungible tokens (NFT) and a general overview of developments since the end of 2021. A new database of regulations, updated weekly, covers all updates in the industry.

NFT and stablecoins catch politicians asleep

The NFT boom of 2021 prompted governments and international organizations to take action. With over $ 9 billion in NFT sales on Ethereum, the emergence of a well-defined regulatory landscape for NFTs is key to future sustainable market development. The NFT market accounted for $ 1.5 million in illegal activities in the last quarter of 2021 alone. While this is small compared to the volume of money laundering that is taking place elsewhere, it marks a detrimental development that could continue until 2022.

In both the United States and the United Kingdom, authorities have failed to implement clear guidelines on NFT, with some uncertainty about how to classify the asset class, although NFT publishers and marketplaces may need to comply with money laundering provisions and know your client. habits.

Cointelegraph Research records all surveillance events around the world on a weekly basis in its regulatory database.

Access the Cointelegraph Research Regulation Database here

Stablecoins, like NFTs, grab policy makers at a price. Stablecoin’s supply increased fivefold from $ 26 billion at the beginning of 2021 to $ 164 billion at the end of 2021. Growth will continue into 2022, with total supply increasing by 6.8% in the first six weeks of the year.

The Financial Stability Board, an international body that coordinates the efforts of global financial regulators, has called for action on stablecoins in its 2020 and 2021 reports and has set July 2022 as a transitional deadline to establish a regulatory framework in national jurisdictions. The regulation of Stablecoin is even more complex due to the introduction of decentralized stablecoins linked to the US dollar that are unsecured like TerraUSD (UST), without a “one size fits all” solution for regulators.

Governments are playing catch-up

The report also delves deep into developments throughout H1 2022. Another sector covered is the central bank’s digital currencies. With the advancement of the CBDC in no less than 91 countries around the world, governments are waking up to the potential of digital currencies. The future continues and lawmakers have significant work to do to bring regulations to the floor that promote innovation while allowing the universal adoption of digital assets.

CBDCs could lead to increased tax compliance and better measurement of financial transactions, but could greatly hinder the adoption of cryptocurrencies and even replace some decentralized digital currencies directly because they profit from stability and trust the government encourages many consumers.