Wed 28 Feb 2024 ▪
3
min of reading ▪ by
Cryptography is a rapidly expanding field that is attracting more and more investors, entrepreneurs, and users. However, it also presents challenges to regulatory authorities, who seek to protect crypto consumers, prevent fraud, and combat money laundering. In this regard, the SEC and the European Union plan to step up their enforcement and regulatory approach to the cryptographic sector in 2024. So, what are the main issues and expected changes?
The SEC continues its crackdown on unregistered crypto companies
For a long time, the regulation of the crypto sector has been a vehemently debated issue. According to the report by Norton Rose Fulbright, the SEC will continue its “aggressive pursuit” of cases and enforcement actions related to:
- unregistered offerings,
- NFTs,
- unregistered crypto exchanges in 2024.
The SEC has already initiated lawsuits against several cryptographic companies. They notably include Telegram, Kik, Ripple, and Coinbase, accused of violating securities regulations.
The EU prepares a regulatory transformation of the crypto sector
In the EU, the MiCA legislation will be progressively implemented. These crypto regulations will introduce new requirements, including:
- the application of the “travel rule” for crypto assets,
- the regulation of various digital asset service providers.
The travel rule came into effect on December 30, 2023. It requires crypto companies to provide information about the sender and the recipient of a crypto asset transfer. The purpose: to facilitate the traceability of cryptocurrencies and prevent money laundering.
Regarding digital asset service providers, they will need to obtain authorization. They must also comply with the governance standards, transparency, consumer protection, and risk management in force.
Given these imminent changes, it becomes imperative for crypto players to adapt and comply with the new standards. How will this regulation influence innovation and the dynamics of the cryptocurrency market? The future will tell!
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Je m’appelle Ariela et j’ai 31 ans. J’oeuvre dans le domaine de la rédaction web depuis maintenant 7 ans. Je n’ai découvert le trading et la cryptomonnaie que depuis quelques années. Mais c’est un univers qui m’intéresse beaucoup. Et les sujets traités au sein de la plateforme me permettent d’en apprendre davantage. Chanteuse à mes heures perdues, je cultive aussi une grande passion pour la musique et la lecture (et les animaux !)
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
