The market of Cryptocurrency is one the base of decentralization and it is not under any regulation. But in recent times there are types of crypto platforms which are Bitcoin Motion Software that under the regulation of which country belong, the Crypto market is facing very tough times.
It is now important for all the exchanges to provide information about all their transactions in the EU. Also, the UK has been issuing new policies and is becoming strict on licenses.
There are new restrictions on the Crypto market by the SEC. The exchanges are under more strict standards for accounting. Several experts are of the view that the market of Cryptocurrency is growing at a rapid pace, but it is facing high regulations at the same time.
Earlier, the transactions were not under any regulation and the exchanges were not under any restrictions. But, now the EU is introducing new rules for this market.
The requirements are changing and the EU is regulating these rules. The union is stating that it is compulsory for all the transactions to be clear and that the information of the parties needs to be present.
It has said a complete “No” to any kind of anonymous transaction.
- There are various non hosted wallets and to make all the transactions more transparent, these rules are made. With the implementation of these rules, parties have no permission to make any kind of anonymous transactions.
- After setting these rules, the union says that these are for the sole purpose of making the financial crimes go down.
- There are large numbers of illegal transactions happening around Europe. And to fix this issue, these rules are entering the market.
- The CEOs of some leading brands are saying that these rules are against the very features of the world of Cryptocurrency. These are violations of the innovation, privacy of the parties, and law enforcement.
- Another officer of Coinbase informs that these laws may mean that they will interfere with the normal functioning of Crypto. And record all the transactions in the wallets that are self-hosted. There is no suspect of being anything illegal but the authorities are enforcing these laws.
The authorities are trying to set these rules strictly and keep a close eye on the functioning of the Crypto exchanges.
Over time, the rules for digital currencies are getting strict in many parts of the world. In the first position, the rules were only from the EU. But now these are available in the US and UK as well.
- The rules are like this, the exchanges of digital currencies need to maintain the transactions in a correct manner. They will have to keep records of the present digital assets of their users on their balance sheet. And, these should be in the column of liabilities or assets.
- The exchanges have to mention the type of asset and its total amount as well.
- In the United Kingdom, the brands that offer and accept Crypto as a form of transaction, have to register under the regulator.
- The brands that are seeking registration have many red flags that are from the financial side.
- Many firms are managing to get licenses for carrying out their services.
- Many officials think that this approach toward digital currency is very inefficient and unnecessary.
The rules for these exchanges are becoming strict with each passing day. Applying for a license is now essential to continue the digital currency exchange.
And all these outlets will also require to maintain the records on their balance sheet so that it becomes transparent. The US along with the UK is starting with this trend after the EU.
This storm for Cryptocurrency is on the way to ruining and limiting its growth. Due to these rules, many investors may find it hard to invest and stake in these tokens.
A question that arises in this stage is whether are these rules a mere aspect for keeping an account of all the transactions.
Some analysts say that because the authorities have the fear that they cannot understand the market of Cryptocurrency as a whole. And, another reason can be that they are trying to keep this market under their control.