Crypto / regulations

The US government opens a public discussion about cryptocurrencies and their future. Moreover, it opens the door to inviting the crypto industry to solve future fiat currency problems. Background The government’s decision to open a consultation period with the public about cryptocurrencies is a necessary move towards regulation in their country. It’s an important step in the right direction towards acceptance of cryptocurrency, as well as blockchain technology. It also shows that the government is seeing the potential of blockchain and cryptocurrency in the future and want to make sure they’re prepared for when these technologies become more mainstream. The US wants to become a crypto hub for the future of the digital currency that moves forward. What is being proposed? When it comes to cryptocurrencies and blockchain, the US may take a very “hands-off” approach. They’re open to allowing cryptocurrencies to be traded freely in their country, as well as blockchain technology. This is encouraging news for investors in the cryptocurrency world, as it shows that the government is on the same page when it comes to the potential of these technologies. Malta is proposing to make cryptocurrency exchanges follow the same rules and regulations as the stock exchanges. This means that exchanges would have to be licensed, as well as go through audits. This is a good thing for the cryptocurrency world, as it will bring more legitimacy and trust to the exchanges. If a country like the US can implement cryptocurrency regulations, other countries can also. Limiting cash transactions and imposing licensing regulations The government wants to open its door to cryptocurrencies since current high inflation persists in the economy. This is an interesting proposal and one that is sure to spark some debates, as it’s very rare to see an open government discussion on possible adaptation of the future money. The reason for this is to prevent money laundering and other illegal activities while having an opportunity to lead future technology advancement once again. When it comes to licensing, two different types of licenses could be issued. The first license would be for exchanges, while the second would be for corporate adaption. Depending on what the government decides, both of these licenses could be combined or separated. Conditions to be met for the issuance of a cryptocurrency license The government wants to make sure that the exchanges, as well as the crypto projects that are allowed to operate in their country, are legitimate and trustworthy. They’ll do this by making both of these groups meet certain conditions that must be met before they’ll be granted a license. The licensing authorities will keep an eye on the projects and exchanges to make sure that they follow the rules and regulations. This will include making sure that the projects don’t violate the rights of others financially, such as investors. The government will also have a “sandbox” for exchanges and projects, which means that they’ll test them in a controlled environment before they are allowed to operate on their own. This will help make sure that everything is legitimate and trustworthy. Regulatory provisions for crypto services The government has included some crypto services provisions, such as smart contracts. They want to make sure that the services that are granted a license are trustworthy and that they won’t be able to be hacked. They also want to make sure that they’re safe and that they won’t be able to be used for malicious purposes. The government has proposed having a regulatory body that is in charge of these services. This body will also keep an eye on the services to make sure that they’re following the regulations. The government also wants to make sure that the public is safe when it comes to these services. They’ve proposed that there be a set of safety standards and a code of conduct for the users of these services. Monitoring requirements for digital currency hosting services The government has proposed monitoring requirements for digital currency hosting services. This includes monitoring what types of services are being provided by these companies, as well as the volume and size of their transactions. This is important for monitoring money laundering and other criminal activities, as well as for making sure that the services are legitimate. In addition, the government has proposed that anyone who hosts digital currency and provides services related to cryptocurrencies should be registered with the Financial Intelligence and Investigation Division, or FIOD. This will help track the flow of money and make sure that it’s not tied to criminal activities. Final words The US government is taking a very open and accepting approach toward cryptocurrencies and blockchain technology. Of course, they want to implement regulations and monitoring to ensure that everything is legitimate and safe, but they’re not trying to halt the industry as some other countries have. They’re also looking to make the US a hub for blockchain and financial technology, and they’re taking the first steps towards making that happen. Reminder: I am not your financial advisor. Buy me a coffee here if you want to support my writing.