Does cryptocurrency face regulation in 2022? Countries that could accept or BAN crypto
Bitcoin fraud: Victim discusses ‘warning bells’
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Since 2021, Bitcoin and many of its contemporaries have successfully broken new ground, despite stumbling at several points. The year ahead already seems a little brighter, with modest one or two percent gains cultivating a bullish fervour. As with other investments, whether they fall or fly depends on the wider world, and some nations have big plans for the market in 2022.
Could cryptocurrency be regulated in 2022?
Most experts and analysts have branded the cryptocurrency market a new “Wild West”, crediting the lack of regulation for its big value swings.
The tokens within it are often used for illicit purposes and threaten the existing fiat order.
Regulation is a potential answer to maintaining a shred of balance in the financial world, and some government organisations have announced their plans to tame it.
In November 2021, representatives of US agencies, including the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency, announced a “roadmap” for 2022.
Together, they said they would work to “provide greater clarity on whether certain activities related to crypto-assets conducted by banking organisations are legally permissible” for supervised institutions.
They also pledged to provide them with clarity on “expectations for safety and soundness, consumer protection, and compliance with existing laws and regulations”.
They listed five areas their efforts would focus on in the year ahead.
These areas include:
- Crypto-asset safekeeping and traditional custody services
- Ancillary custody services
- Facilitation of customer purchases and sales of crypto-assets
- Loans collateralised by crypto-assets
- Issuance and distribution of stablecoins
- Activities involving the holding of crypto-assets on balance sheet
The announcement showed a creeping appetite for regulation, at least in the US, and Hong Kong will soon follow suit.
Hong Kong regulators have announced they plan to release a set of their own rules for cryptocurrencies by July this year.
The Hong Kong Monetary Authority is approaching the industry from three key areas.
The agency said it would focus on stable coins for payments, investor protection and oversight for authorised institutions dealing with digital assets.
Which countries have banned crypto?
While some nations embrace cryptocurrencies, others plan to turn away from them.
In 2021, China made significant movements in this direction, with immediate fallout on the market and widespread losses.
In the year to come, Pakistan’s central bank is reportedly considering a ban as well, with reports from local news channel Samaa TV stating several authorities submitted a document calling for several tokens to be made illegal.
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