One of the advantages of using cryptocurrencies is the ability to easily manage international payments and transactions without all the challenges of passing through multiple banks and meeting multiple regulations. For companies of all sizes, as well as for consumers, this means faster, cleaner transactions without all the additional transaction fees and hidden costs.
However, unlike fiat currency, there are no uniform regulations or standards around cryptocurrencies. Some countries, such as China, Egypt, Iraq, Iran, Russia, and Vietnam, have banned or made illegal the use of cryptocurrencies for payments. Some of these countries do not pan the use of trading or holding cryptocurrencies, which is seen as even more challenging to manage.
Countries are embracing the use of cryptocurrencies, with El Salvador becoming the first country to make Bitcoin an officially recognized currency and legal tender. Other countries, like the United States, Mexico, Australia, and many countries in the EU, allow the legal use of cryptocurrencies.
These piecemeal regulations, from hostile to open to the use of Bitcoin, create challenges for crypto asset regulation. Many lawmakers throughout the United States are calling for leadership on crypto asset regulation. They want a comprehensive approach that not only protects investors but prevents the growing number of enforcement actions against investors and cryptocurrencies companies.
Adding to the concern is that some countries will be able to profit from the lack of crypto asset regulation. For example, China is far ahead of the USA in developing a central bank digital currency, allowing for the possibility of cryptocurrency-friendly nations allowing funding and development that may not be acceptable to other countries around the world.
Blockchain Asset Review offers a comprehensive overview of the latest evolution in crypto asset regulation throughout the world. To find out more, see us online at Sitename.