Race to Global Crypto Regulation Begins, As the Current Structures no Longer Fit for the Purpose

Synopsis

“The regulators all around the world are going full steam on crypto regulations as the FOMO among the countries in the crypto race is getting intense day by day. Russia recently announced its draft bill for the regulation to be launched by Feb 18th which sparked the fire to regulate crypto among other nations. Everybody wants to win the race but it is quite evident that the current regulatory structure is not at all fit for regulating crypto and thus a new regulatory structure and watchdog is required for the crypto regulation.”

The race to crypto regulation is intensifying by the day and with more and more nations providing a positive outlook to adopt and tax crypto such as Russia and India, many nations such as the US and France are feeling the heat as they fear of remaining behind in the race. Robert Ophèle, chairman of France’s markets watchdog, the Autorité des marchés financiers (AMF), and a member of the Financial Stability Board (FSB) at a virtual conference on Wednesday discussed the global crypto regulation and said “The current structure is no longer fit for the purpose with the development of cross-border digital market activities.”

As per Robert, the regulators are not able to actively supervise the crypto sector as the crypto assets were not seen as a financial stability threat in the past and there has been no proper regulatory framework in place and there is no proper watchdog for the crypto industry as there is European Central Bank for Banks across the European Union. Such a watchdog needs to be appointed for developing a framework that would bring proper regulations to the crypto industry without being a threat to global financial stability due to unregulated cross border transactions at a global scale.

The year 2022 seems to be the year of crypto regulation and the crypto industry is being seen with a positive outlook which is an exact opposite of what it was in 2021 and before that.