Global Cryptocurrency Industry Regulation Fluctuations: Regulatory Situation and Response Strategies in 2024

Web3 Market Research Institute
2024-02-23 21:11:46
Collection
Growth vs Regulation, how to break the deadlock?

Written by: Web3 Market Research Institute

Bim Afolami, the UK's Economic Secretary to the Treasury, stated that the UK government is committed to swiftly addressing issues related to crypto and plans to implement new crypto regulations for stablecoins and staking services within the next six months.

The EU's MiCA (Markets in Crypto-Assets) legislation, which was unanimously voted on in 2023, is considered the first comprehensive legislation targeting the entire crypto industry. Some provisions of MiCA will come into effect in June 2024, and a consultation will be held again in April 2024, with other provisions expected to take effect in December.

The U.S. Treasury Department released the "2024 National Risk Assessment on Money Laundering, Terrorist Financing, and Proliferation Financing," highlighting the risks of illegal fundraising and those related to virtual assets.

The ruling party in South Korea is pushing to delay the taxation of cryptocurrency investment gains by two years. This move appears to be part of the party's campaign for the upcoming April elections. The plan was initially set to be implemented in 2023, then postponed to January 2025, and the current request seeks to delay it until 2027. A political leader from the party also emphasized the risks of implementing taxes without a solid tax base.

German police temporarily seized 50,000 bitcoins worth $2.17 billion in a piracy enforcement operation, reportedly the largest cryptocurrency seizure in the country's history.

In 2024, policies and regulatory intensity regarding cryptocurrencies vary widely across regions. In a time when the regulatory environment is unclear, how should projects achieve global growth while mitigating regulatory risks?

Compliance Check

Conduct a comprehensive compliance check for the project to understand and adhere to local and international regulatory requirements. Ensure that the platform's operations comply with the regulatory framework of the location. In 2022, BitMEX, which was accused by the CFTC of deliberately evading U.S. regulations, ultimately reached a settlement, paying up to $100 million in compensation, and CEO Arthur Hayes along with other executives completely exited management. The product also accelerated its KYC program, requiring all users to complete verification as soon as possible.

Legal Consultation

Seek professional legal consultation to ensure that the project's operations comply with regulations and can promptly address potential legal issues. The advice of compliance experts is crucial for the long-term success of the project.

Geographic Restrictions

Implement geographic restrictions based on regulatory requirements for specific countries or regions, limiting access for users from certain areas. This helps avoid complex regulatory issues involving multiple jurisdictions. Many products not only add geographic restrictions on their official websites but also emphasize regional limitations during promotional activities.

Binance will display a pop-up when accessed from a U.S. IP address.

TRON will indicate that users from specific regions cannot participate in activities released on the Web3 growth platform to mitigate regulatory risks.

The industry should actively embrace compliance, but due to the unclear regulatory policies in various regions, projects must draw on the experiences of predecessors to minimize the risks posed by regulations while maintaining project growth, awaiting the arrival of a truly reasonable and clear regulatory era.

ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.
ChainCatcher Building the Web3 world with innovators