One of the most heated debates in the cryptocurrency space is the future of regulation and whether financial regulatory bodies should oversee the trading of crypto coins.
Just last month, a group of United States congressmen put forward a new cryptocurrency bill labeled the Cryptocurrency Act 2020.
The goal of the new legislation is to provide additional clarification on digital asset regulations. The bill has some wide-ranging regulations that, if voted into law, could reshape the crypto landscape moving forward at least in the United States, that is.
The US senator who put forward the Cryptocurrency Act 2020, Paul Goser, stated that it was his desire to attribute regulatory clarity to the market.
Currently, many cryptocurrency regulations across the world are vague. Consumers and lawmakers are locked in a debate over which agencies are responsible for regulating different types of cryptocurrencies.
Some companies, like EOS or Telegram, have even been fined for conducting unregulated securities, for instance.
In this article, Ill discuss what to expect from regulators in 2020 with a focus on the Cryptocurrency Act 2020, since I believe it could have a significant impact on the space.
In November last year, Coin Rivet reported that the US Financial Stability Oversight Council (FSOC) has called for tighter regulations on stablecoins and digital assets.
As part of its latest annual report, the council identified digital assets and stablecoins as major areas for concern, urging closer scrutiny of existing laws and a review of new products in the blockchain space.
In October, the Central Bank of Russia revealed it is against the integration of cryptocurrencies in the public monetary system, even though some banks and politicians, Vladimir Putin included, have insisted on adopting crypto regulations instead of banning digital coins.
On January 10 2020, the European Union (EU) will implement a new law known as the EU Fifth Anti-Money Laundering Directive (5AMLD) which requires cryptocurrency platforms and wallet providers to identify their customers for anti-money laundering purposes.
Some countries such as Germany, Italy, and the Netherlands are expected to implement the 5AMLD law by the deadline this week, but other nations are resisting it.
The United Kingdom has decided to implement the law despite its decision to leave the EU.
Mexico is also reportedly taking a harder stance on fintech and cryptocurrency companies.
We can clearly see the current trend is moving towards increased regulation and oversight across the globe.
The Cryptocurrency Act 2020 begins with the categorisation of cryptocurrencies into three main groups. These groups are then used to determine which agencies are responsible for the creation of regulation and legislation. The first class described in the new bill is cryptocurrencies.
The crypto class includes Bitcoin, Litecoin, and any other cryptocurrencies that dont fall under the current securities regulations. The bill classifies these tokens as any digital asset that includes representations of United States currency or synthetic derivatives resting on a blockchain or decentralised cryptographic ledger.
Smart contracts and oracles fall under the cryptocurrency category as well.
The next class described in the bill is crypto-commodities. A key aspect of these tokens is the fact that they contain some form of substantial fungibility.
Fungible assets are interchangeable, such as the USD. These assets must reside on a blockchain or decentralised cryptographic ledger to fall under this classification.
The final type of coin described in the bill is crypto-securities. These tokens are simply any coin that fails the Howey Test.
The three regulatory bodies mentioned in the bill that will oversee the cryptocurrency space include the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and the Financial Crimes Enforcement Network (FinCEN).
These groups will gain sole authority over their respective digital asset types.
We have witnessed a clear and transparent shift from government bodies, especially in the US, towards the regulation of digital assets since the announcement of Facebooks Libra. I expect more legislation in the near future, even though I highly doubt its long-term effectiveness.
However, if regulation brings more businesses and companies into the space, thats a good thing. Hopefully, well see companies taking this wave of regulation as a sign for adoption.
The post What to expect from cryptocurrency legislation in 2020 appeared first on Coin Rivet.
- Extrapolating The Future of Cryptocurrency - hackernoon.com - September 19th, 2020
- Ditching Dinars: Will the Balkans Take to Cryptocurrency? - Balkan Insight - September 19th, 2020
- The risks of investing in cryptocurrency and how to overcome them - Telemedia Online - September 19th, 2020
- How is cryptocurrency going to be regulated in the EU? - Kalkine Media - September 19th, 2020
- Russia and Ukraine have Disproportionately High Cryptocurrency Usage with Many Locals Shifting Financial Activity to Digital Assets: Report -... - September 19th, 2020
- Will crypto trading get as regulated as the stocks or FX trading? - Crypto News Flash - September 19th, 2020
- Opinion: Can Uniswaps UNI Break Into the Top 10 Cryptocurrency Token Rankings? - CryptoPotato - September 19th, 2020
- Ditching Dinars: Will The Balkans Take To Cryptocurrency? - Analysis - Eurasia Review - September 19th, 2020
- The Rise and Fall of a Tribal Cryptocurrency - hackernoon.com - September 6th, 2020
- How Will Greece Be Impacted By Cryptocurrency? - GreekCityTimes.com - September 6th, 2020
- Justice Department Seeks To Recover Hacked Cryptocurrency Funds Tied To North Korea - Forbes - September 6th, 2020
- Cryptocurrency Prodigy, Joseph PlugWalkJoe O'Connor, Is Helping People Everywhere Master Crypto - AiThority - September 6th, 2020
- Kazakhstan in talks on $700m in cryptocurrency mining projects - Cyprus Mail - September 6th, 2020
- Akon Unveils Major Details of $6 Billion Cryptocurrency City: Real-Life Wakanda - Bitcoin News - September 6th, 2020
- Cryptocurrency Market News: Bitcoin drops to $10,460 after a significant rejection and overall weakness - FXStreet - September 6th, 2020
- Brexit in the US: Californian exit plan will use cryptocurrency to give everyone an income - Daily Express - September 6th, 2020
- YFI: Yearn Finance becomes the most expensive cryptocurrency, surges past $27000 - Nairametrics - September 6th, 2020
- Facebook and Twitter need to do more to prevent cryptocurrency scams, says CoinCorner CEO - ResponseSource - September 6th, 2020
- PM Modis Websites Twitter Account Briefly Hacked to Ask for Cryptocurrency - NDTV - September 6th, 2020
- The Cryptocurrency XRP Is Having A Good 6 Weeks - Forbes - August 24th, 2020
- IMF Publishes Cryptocurrency Explainer, Saying It 'Could Be the Next Step in the Evolution of Money' | News - Bitcoin News - August 24th, 2020
- Report finds $50 billion of cryptocurrency moved out of China hinting at capital flight against Beijing rules - CNBC - August 24th, 2020
- Leading Cryptocurrency Exchange PayBito to Add More Altcoins to the Platform - AiThority - August 24th, 2020
- Crypto: Why investors are rushing to DeFi assets - Nairametrics - August 24th, 2020
- Hackers Intercept Cryptocurrency Payments on the Tor Network Through SSL Stripping - CPO Magazine - August 24th, 2020
- Bitcoin price is surging as investors turn back to cryptocurrency - Metro.co.uk - August 20th, 2020
- Cryptocurrency from Coincheck cyberattack to be confiscated - The Japan Times - August 20th, 2020
- Tether retakes top 3 cryptocurrency spot over XRP - Decrypt - August 20th, 2020
- Bitcoin price hits 2020 record as investors turn to cryptocurrency during pandemic - The Independent - August 20th, 2020
- Buy Bitcoin or Gold? Novogratz and Portnoy Prefer the Cryptocurrency - Bloomberg - August 20th, 2020
- Boston Fed Bank explores cryptocurrency with MIT - Boston Herald - August 20th, 2020
- Cryptocurrency And Wills - Today's Wills & Probate - August 20th, 2020
- Cryptocurrency gaining traction in mainstream - Jim Duffy comment - The Scotsman - August 20th, 2020
- Cryptocurrency Mining Profitability in 2020: Is It Possible? - Cointelegraph - August 10th, 2020
- Flaws Could Have Exposed Cryptocurrency Exchanges to Hackers - WIRED - August 10th, 2020
- Cryptocurrency Cards: An Unnecessary Solution That Should Be Stopped - Cointelegraph - August 10th, 2020
- Wall Street Revealed To Be Edging Out Bitcoin Traders With $1 Million+ Transactions - Forbes - August 10th, 2020
- Cryptocurrency This Week: India Could Ban Virtual Currencies & More - Inc42 Media - August 10th, 2020
- US Congressmen Want IRS to Balance Taxation and Innovation in the Cryptocurrency Space | Taxes - Bitcoin News - August 10th, 2020
- Will This Quantum Computing Breakthrough Save Bitcoin and Cryptocurrency? - The Daily Hodl - August 10th, 2020
- Cryptocurrency Market Update: Bitcoin, Ripple and Ethereum begin consolidating - FXStreet - August 10th, 2020
- Cryptocurrency: The Currency of the Future - Techtree.com - August 10th, 2020
- Weiss Ratings Places Ethereum Ahead of Bitcoin As Top Cryptocurrency, Says Cardano Has the Best Technology - The Daily Hodl - August 10th, 2020
- Bitcoin surges past 8,400 as investors look for 'safe haven' - The Telegraph - July 29th, 2020
- Blockchain and how it can change construction - Geospatial World - July 29th, 2020
- CEO of Toronto-based cryptocurrency exchange Coinsquare resigns after regulatory probe - CBC.ca - July 29th, 2020
- 2020 will have publicly-traded cryptocurrency firms Barry Silbert - FXStreet - July 29th, 2020
- Chainalysis Introduces New Website, Market Intel, which gives Digital Asset Managers and Regulators Access to Meaningful Insight about Crypto Activity... - July 29th, 2020
- Why it is time to invest in Ethereum - Nairametrics - July 29th, 2020
- Cryptocurrency firm KuCoin 'shocked' by Twitter hacking - The National - July 19th, 2020
- Samsung Added Support for Stellar (XLM) Cryptocurrency to its Blockchain Keystore, Allows Millions of Users to Access the Digital Asset - Crowdfund... - July 19th, 2020
- $30 billion worth of BTCs disappears forever - Nairametrics - July 19th, 2020
- Popular singer, Akon and other leading experts speak on Africa's Crypto - Nairametrics - July 19th, 2020
- Revolut partners with Paxos to bring cryptocurrency trading to the US - TechCrunch - July 17th, 2020
- Paypal Developing Cryptocurrency Capabilities, Letter to European Commission Confirms | News - Bitcoin News - July 17th, 2020
- Apple, Biden, Musk and other high-profile Twitter accounts hacked in crypto scam - TechCrunch - July 17th, 2020
- TCS is ready to mine the new crypto economy, snatches early-mover advantage with Quartz - Economic Times - July 17th, 2020
- These Two Cryptocurrency Marks For In Which Way The Bitcoin Is Headed - Inventiva - July 17th, 2020
- US Embassy in BD launches webinar series on dark web and cryptocurrency - The Financial Express - July 17th, 2020
- Impact of Covid-19 on Cryptocurrency 2020-2027 with Focusing Key players like Nvidia, Xilinx, Intel, Advanced Micro Devices, Bitfury Group, etc - Cole... - July 17th, 2020
- Revolut launches cryptocurrency trading in US - ThePaypers - The Paypers - July 17th, 2020
- Brave New Coin to Develop Cryptocurrency Indices that Toronto Futures Options Swaps Exchange will Use for Cash-Settled Options Trading - Crowdfund... - July 17th, 2020
- Binance Pool Partners with BitRiver - Finance Magnates - July 17th, 2020
- ESET Discovers Trojanized Mac Cryptocurrency App Collecting Wallets and Screenshots - IT News Online - July 17th, 2020
- Cryptocurrency Mining Hardware Market (COVID 19 Updated) Climbs on Positive Outlook of Excellent Growth by 2027- Advanced Micro Devices, Baikal... - July 17th, 2020
- New York Appellate Court Confirms Attorney Generals Broad Investigative Powers into the Cryptocurrency Industry - JD Supra - July 17th, 2020
- Cryptocurrency Market with COVID 19 Impact-Global Industry Report, Size, Demand, Revenue, Top Manufacturers, and Forecast to 2026 - Cole of Duty - July 17th, 2020
- Global Cryptocurrency Mining Software Market Projected to Reach USD XX.XX billion by 2024 : Genesis Mining, NiceHash, Awesome Miner, MinerGate,... - July 17th, 2020
- Chainlink (LINK) Becomes the Tesla of Cryptocurrency Whats Next? - Cointelegraph - July 14th, 2020
- As Bitcoin Struggles, This Minor Cryptocurrency Has Soared 1,000% In Just Over 12 Months - Forbes - July 14th, 2020
- Brave New Coin Signs Multi-Year Deal To Power Cryptocurrency Options Trading On Toronto Futures - Scoop.co.nz - July 14th, 2020
- Latest News On The Cryptocurrency Market | Intel, CoinBase, BitGo, and Binance - Jewish Life News - July 14th, 2020
- Akon sets out vision for his cryptocurrency and Akon City - Decrypt - July 14th, 2020
- Bank of England eyes groundbreaking new currency as key part of Britains future - Express - July 14th, 2020
- Bitcoin Exchanges And The Cryptocurrency World Was Just Rocked - JD Supra - July 11th, 2020
- New York Court Approves Investigation Into $10 Billion Cryptocurrency Created By A Presidential Candidate - Forbes - July 11th, 2020
- Huobi Global Provides Insight on What Is Driving the Institutional Interest in Cryptocurrency Investment - PRNewswire - July 11th, 2020
- What Challenges Affect the Cost of Running a Cryptocurrency Exchange - Cointelegraph - July 11th, 2020
- Cryptocurrency And Blockchain Technology Market size Reap Excessive Revenues size COVID-19 2022 - Kentucky Journal 24 - July 11th, 2020
- Fast Pace of Cryptocurrency Adoption in Latin America May be due to Dramatic Rise in Smartphone Users, Bitso Executive Reveals - Crowdfund Insider - July 11th, 2020