Impact of Regulation on Cryptocurrency Talks

In recent years, the cryptocurrency world has experienced rapid growth and evolution. Along with the appearance of decentralized cryptocurrencies such as Bitcoin and Ethereum, many people have used high return potential to discuss these digital assets. However, the growing popularity of cryptocurrency is increasingly increasingly concerned about regulation. In this article, we will use the impact of the Regulation on the trade of cryptocurrencies and check the current regulatory scenario in various jurisdictions.

The normative environment

The regulatory environment around the cryptocurrency is complex and constantly developed. In 2017, the cryptocurrency market was a significant increase in popularity when many new investors played. However, as the market increases, security concerns, volatility and illegal activities increase. Regulators around the world responded to these concerns by introducing the rules designed to limit the use of cryptocurrencies for illegal purposes.

Types of Rules

There are several types of rules that affect cryptocurrency conversations, including:

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Cash Laungeration (AML) : AML rules require exchange and other financial institutions to verify customer identity and report suspicious transactions to the administrative authorities.

• Meet your customer (KYC) : KYC rules need to exchange customer identity and save customer data for a certain period of time.

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Impact on cryptocurrency conversations

The impact of trade regulation of cryptocurrency varies depending on the specific rules introduced in each jurisdiction. Some countries have adopted a calmer approach, while others introduced strict rules that significantly influenced the market.

Positive Effects

The rules can also positively influence cryptocurrency conversations:

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Increased security

: Rules such as AML and KYC help prevent money laundering and other illegal activities.

• Market stabilization : Rules as capital requirements can help stabilize the market by preventing excessive speculation.

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Consumer Protection : Rules such as AML and KYC provide consumers with greater protection against fraud and phishing attacks.

Negative effects

The rules may also have a negative impact on cryptocurrency conversations, including:

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Trade Restrictions : Some rules limit the ability to agree on cryptocurrencies, such as requesting a license or registering an account.

• Increased Costs : Rules can increase exchange and other companies operating in regulated markets.

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Restricted Service Availability : Regulated services such as custody portfolios may be limited or not available due to strict regulatory requirements.

Variations of jurisdiction

The rules for trade in cryptocurrencies differ significantly from jurisdiction to jurisdiction. Some countries have adopted a calmer approach, while others have introduced strict rules that may have a significant impact on the market.

United States: mixed bag

The United States is at the forefront of the regulation in the cryptocurrency space. The Coin Law in 2017 banned the promotion of cryptocurrency as an investment possibility, and by 2020, the SEC issued a guideline document describing its normative status on digital assets.

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