It is clear as day that regulation is a massive boogyman to the world of crypto. This has been the case ever since the inception of crypto back in 2010. Most of you reading this would be surprised to learn that the major point of decentralized currencies is that they are not for regulations. Some people see regulation and think that it is a sign that the market is mature and that crypto’s rise solidifies it as a currency that is legitimate.
Whatever people think about crypto, one thing remains certain and that is crypto is always going through loads of regulations. This is true for crypto all over the world. What’s more, most of the prices tend to be linked with the negotiations that take place. In the United States, there isn’t any overarching cryptocurrency body for the time being. However, there seems to be a series of state and federal laws.
As you would expect, these laws are there to make sure that things remain manageable. A renowned national regulatory bureau that goes by the name of FinCEN offers license just for crypto. The licenses are a must for crypto exchanges if they want to maintain their legitimacy and remain open. What’s more, they enable money transfers, detailed background checks, as well as sales through prepay. That being said, all of these come with a massive fee.
It is also worth keeping in mind that crypto exchanges should be registered in the form of money service operations. What’s more, they should also let law enforcement know about any activity on their platform that they deem to be suspicious. A large number of exchanges feel particularly on edge due to the final requirement. One of the main reasons behind these fears is that they want to offer their full respect to the privacy of their customers.
At present, exchanges don’t go through regulations, particularly in the United States even if they plan to host brand new crypto. Because of this, the chances of manipulation and fraud go sky high. That being said, exchanges tend to get regulated and reviewed whenever they would prefer Initial Public Offerings.
There are a large number of advocates in the crypto world who have been calling for exchanges to start regulating themselves. The plan is to create some well-established guidelines and spread them all over the industry to make sure, the crypto world remains well regulated and free from troubles. With all that said, the crypto world will keep on evolving and so will the way in which they are regulated.