Uneven Trip towards Blockchain RegulationAnnabella Cornelly
It’s true that changes are sometimes hard to accept and implement. The adoption of certain measures might be not as smooth and even as many would like it to be. However, the fact is that all these transformations are necessary if we wish to move ahead and improve the current system or infrastructure. All industries sooner or later face this dilemma and resolve it in various ways.
According to the most recent reports, blockchain regulation is one of the subjects that bother many professionals’ minds nowadays. The crypto market admits that it sees plenty of speedbumps that slow down the movement. Also, specialists confirm that the roadblocks that may occur are caused by unexpected events as well as authorities and other participants who do not feel prepared enough to accept innovations.
No doubt, the industry has to cope with superhighways and the path to success seems to be rather dangerous and risky. As news agencies report, the USA is ready to keep on enacting laws. Their main mission is to support the use of the blockchain approach. Analysts note that this technology is great for various purposes, especially while resolving issues related to digital currencies and securities.
Blockchain innovation is going through another important phase and its current state is compared to a tale of two types of assets. First, the commission feels rather reluctant to accept or promote securities based on blockchain. This, in turn, has slowed down the implementation and adoption.
Next, authorities dealing in the banking sector, commodities, and fund transmission have shown readiness to collaborate with blockchain teams. All of the currently existing asset classes have been partly approved, and yet what is being done by regulators does not seem to be sufficient so far.
Cautious Regulators Stay Alert
Retail demand is massive and there are plenty of bids. However, the commission intends to approve the fund. What prevents authorities from embracing this innovation is the fact that they have too many concerns linked to market manipulation.Telegram is one of the famous cases they bear in mind while trying to make new suggestions. They also mention the Kik case that caused much trouble.
Activity in the securities sector remains relatively restricted. For instance, last year the commission found it useful toqualify STX tokens. It was performed under Tier 2 of Regulation A. Nevertheless, for purchasers residing in the USA there is no authorized exchange – they still do not have any alternative trading system. This is the major reason why investors cannot deal with the tokens. At the same time, tZERO offers a limited list of assets for traders, although the service operates and functions by an ATS.
Non-securities blockchain businesses as well as assets faced proliferation this year. Many crypto exchanges based in the USA have already included several new assets. We should bear in mind that assets with the greatest global mcap along with impressive trading volume cannot be considered non-security tokens.
The top-ranked cryptocurrency has a mcap of more than two hundred billion USD. Next follows ETH. Some other currencies the market offers are XRP and BCH. Most of the other tokens are non-securities. Regulatory complexity won’t let traders move ahead and trade or sell their non-security tokens. Institutions that possess these assets mustcomply with numerous anti-money laundering obligations.
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