If there’s one point that CoinGeek has emphasized over the years, it’s that regulatory compliance is inevitable for those looking to build apps and startups that use blockchain technology and digital currencies.
While many in the industry chose to either ignore laws and regulations or think about them until they became a pressing issue, others prepared for the inevitable.
As the European Union, China, the United States and other economic powerhouses crack down on crime and publish frameworks for those seeking to use blockchain technology, it is more important than ever to understand blockchain governance’s who, what, where, when and why.
Some recent regulations related to blockchain technology
Here is a quick overview of some of the most important regulations related to blockchain technology. These latest laws reinforce just how significant compliance is and how inevitable it is.
European Union – The European Union leads the group. In just the past two years, it has passed the Markets in Crypto Assets (MiCA) regulations to create a harmonized regulatory regime across the EU. The MiCA rules aim to promote innovation while protecting investors and preserving financial stability. They impose transparency requirements on issuers, define who will regulate and supervise the industry, and take measures to ensure the stability and integrity of the market.
United Kingdom – In June 2023, the United Kingdom passed the Financial Services and Markets Act (FSMA). This law defined the trading of digital currencies and assets as a regulated financial activity, enabling the Financial Conduct Authority (FCA) to more effectively supervise digital currencies and stablecoin activity. In October 2023, the UK government published more rules for fiat-backed stablecoins, paving the way for more regulations related to algorithmic stablecoins, lending and trading.
United States – The situation in the US can best be described as ‘moving towards regulation’. As usual in American politics, there is a lot of disagreement and drama surrounding blockchain and digital currencies, and several pieces of legislation have been proposed or are in various stages of progress. In 2023, the Hosue Financial Services Committee (FSC) published a draft of a stablecoin bill including a study on central bank digital currencies (CBDCs) and a moratorium on stablecoins backed by currencies other than the USD. be suggested. We’ve seen crackdowns on exchanges for violating the Bank Secrecy Act and Anti-Money Laundering Act (AMLA), with regulators like the Securities and Exchange Commission (SEC), Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission ( CFTC) play enforcement roles.
China – The People’s Republic of China has strictly banned digital currencies since 2017. Since its initial ban on initial coin offerings (ICOs) and heavy restrictions on digital currency trading, it has strengthened its position several times. In 2021, it outlawed all forms of cryptocurrency transactions, including the issuance, trading and provision of related financial services. However, there are signs of change; in 2023, the People’s Bank of China (PBoC) called for cooperation in the regulation of digital currencies and decentralized finance (DeFi), dedicating a section to these topics in its annual financial stability report.
Learn more at the London Blockchain Conference 2024
At this year’s London Blockchain Conference, industry experts will explore the ever-evolving regulatory landscape and how to comply.
Sessions will include:
Navigating the Blockchain Regulatory Landscape The “Future of Money” – CBDCs and Stablecoins Regulation of Distributed and Digital Finance Industry Collaboration – Establishing Best Practices and Standards
At last year’s conference, we heard from European Central Bank (ESB) board member Yves Mersch, SmartLedger Solutions co-founder Bryan Daugherty, and others with their finger on the pulse of the global regulatory landscape.
This year’s conference will be more of the same—informed guests and speakers at the forefront of the industry will bring you the latest information. Get your tickets to the London Blockchain Conference 2024 here!
See: Why blockchain regulatory oversight is important
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide for learning more about blockchain technology.
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