Connect with us

Crypto

Global Cryptocurrency Regulations: Impact on Industry and Investor Behavior in 2024

Published

on

Global Cryptocurrency Regulations: Impact on Industry and Investor Behavior in 2024

The world of cryptocurrency has seen remarkable growth and evolution since its inception, transitioning from obscure digital assets to a global financial phenomenon. As we step into 2024, the global cryptocurrency landscape is undergoing significant changes, with governments and regulatory bodies around the world working to establish clear frameworks for the use of digital assets. The regulatory initiatives being discussed in various regions are poised to redefine the industry and significantly influence investor behavior, stepping into 2024.

The U.S. Congressional Debates

In the United States, the cryptocurrency industry has long been characterized by a lack of clear and comprehensive regulation. This regulatory ambiguity has both hindered innovation and raised concerns about investor protection.

– Advertisement –

This year, the U.S. Congress has been actively debating on several bills that aim to address these challenges. These legislative efforts reflect the recognition that cryptocurrencies are no longer on the fringes of the financial world but have become a mainstream asset class. The ultimate outcome of these debates will have a profound impact on industry participants and how investors approach the crypto market.

The Markets in Crypto-assets (MiCA) Law in the EU

Across the Atlantic, the European Union has taken a bold step forward in regulating digital assets. The Markets in Crypto-assets (MiCA) law, which was developed in early 2023, is an ambitious attempt to bring much-needed clarity and structure to the rapidly expanding cryptocurrency ecosystem in the EU.

Advertisement

MiCA addresses various aspects of the crypto space, including unbacked crypto-assets, stablecoins, and trading venues, and digital wallets that facilitate the storage and transfer of crypto-assets. What sets MiCA apart is its comprehensive approach, covering all types of crypto-assets, which will be classified as either financial instruments or electronic money. This legal framework will also introduce specific requirements for crypto-asset issuers, custodians, and trading platforms, aimed at ensuring investor protection and market integrity.

MiCA is expected to become effective in 2024, and its influence is likely to extend far beyond the EU’s borders. In many ways, the MiCA law is anticipated to serve as a model for other jurisdictions worldwide, setting a standard for the regulation of digital assets that governments and regulators can adapt to their specific needs.

India

After implementing taxation rules and regulations in 2022, India in March 2023 included cryptocurrencies under the purview of the Anti Money Laundering Act. To comply with the new regulations, these businesses will be required to register with the Financial Intelligence Unit (FIU) and adhere to other mandatory processes outlined in the Prevention of Money Laundering Act (PMLA). These progressive regulatory measures are expected to instill confidence, attract further investment, and drive innovation in the evolving landscape of cryptocurrencies.

The United Kingdom

The United Kingdom has taken progressive steps in establishing regulatory clarity for cryptocurrencies. A bill that brings cryptocurrencies under the same regulatory framework as traditional assets has been passed into law in June this year as the Financial Services and Markets Act 2023. This law recognizes crypto trading as a regulated financial activity, signifying a significant advancement for the broader crypto industry.

The formal recognition of cryptocurrencies in the UK provides a solid foundation for the industry to thrive. The new law grants regulatory power to key entities such as the Treasury, Financial Conduct Authority (FCA), Bank of England, and Payments Systems Regulator. These authorities will now have the ability to introduce and enforce regulations specifically tailored to crypto businesses.

Advertisement

By introducing comprehensive regulations and granting regulatory powers to key entities, the UK government is signaling its support for the crypto sector’s long-term development.

Impact on the Cryptocurrency Industry

The impending regulatory changes in various countries will undeniably have a transformative effect on the cryptocurrency industry in 2024. Here are some key areas where the impact is likely to be felt:

Market Maturity: Regulatory clarity will contribute to the maturation of the cryptocurrency market. As institutional investors, including hedge funds and asset managers, have been cautiously eyeing the crypto space, the prospect of robust regulations can provide them with the confidence they need to enter the market. This influx of institutional capital can lead to greater market stability and liquidity.

Compliance Costs: The need for compliance with a more stringent regulatory environment will necessitate significant changes in business operations for crypto companies. This includes enhanced due diligence for customer onboarding, reporting requirements, and potentially even licensing fees. Smaller players may find it challenging to adapt to these new compliance standards, leading to industry consolidation.

Innovation and Competition: Regulatory certainty can stimulate innovation in the cryptocurrency sector. Firms will have a clearer understanding of the rules of the game, enabling them to develop new products and services with confidence. The increased competition among regulated entities could drive advancements and improvements in the industry.

Advertisement

Market Integrity: Investors will benefit from increased transparency and security measures, which are integral components of the regulatory framework. Regulatory oversight can help to weed out fraudulent schemes and enhance market integrity, making it safer for retail investors.

– Advertisement –

Market Entry and Exit: Clear regulations can encourage new players to enter the market, but it may also cause some existing participants to exit if they cannot meet the compliance standards. This changing landscape will require adaptation from industry stakeholders.

Impact on Investor Behavior

The evolving regulatory landscape will not only shape the industry but will also significantly influence investor behavior in 2024:

Greater Trust and Confidence: With the establishment of robust regulatory frameworks, investors are likely to have greater trust and confidence in the cryptocurrency market. This newfound faith in the asset class can lead to increased investment and participation.

Advertisement

Risk Assessment: Regulatory clarity will enable investors to better assess the risks associated with various cryptocurrency investments. Understanding the legal and operational parameters of crypto assets can empower investors to make more informed decisions.

Institutional Participation: The influx of institutional capital into the cryptocurrency market is expected to increase as regulations provide a level of assurance that institutional investors typically require. This can lead to larger investments and a more stable market.

Retail Protection: Regulatory safeguards can offer retail investors protection against fraudulent activities and market manipulations. This, in turn, can attract more retail participants to the cryptocurrency space.

Diversification and Portfolio Allocation: As the cryptocurrency market matures, investors may consider adding digital assets to their investment portfolios. The diversification benefits of cryptocurrencies, when combined with regulatory oversight, can make them an appealing option for a broader range of investors.

Conclusion

The year 2024 is poised to be a pivotal one for the cryptocurrency industry. The frameworks expected will not only shape the industry but will also significantly impact investor behavior. While regulatory compliance may present challenges and compliance costs for industry participants, it can also drive innovation and competition, ultimately benefiting the ecosystem.

Advertisement

As we approach this transformative year, it is imperative for investors, businesses, and stakeholders in the cryptocurrency space to closely monitor regulatory developments and adapt to the evolving landscape. The cryptocurrency industry, once seen as the Wild West of finance, is taking significant steps toward becoming a more mature and regulated asset class, and the impact of these changes will be felt for years to come.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Crypto

Cryptocurrency Litecoin Falls More Than 3% In 24 hours By Benzinga

Published

on

Cryptocurrency Litecoin Falls More Than 3% In 24 hours By Benzinga

Benzinga – by Benzinga Insights, Benzinga Staff Writer.

Over the past 24 hours, Litecoin’s (CRYPTO: LTC) price has fallen 3.08% to $78.86. This continues its negative trend over the past week where it has experienced a 3.0% loss, moving from $82.02 to its current price.

The chart below compares the price movement and volatility for Litecoin over the past 24 hours (left) to its price movement over the past week (right). The gray bands are Bollinger Bands, measuring the volatility for both the daily and weekly price movements. The wider the bands are, or the larger the gray area is at any given moment, the larger the volatility.

The trading volume for the coin has increased 2.0% over the past week while the overall circulating supply of the coin has increased 0.0% to over 74.53 million which makes up an estimated 88.73% of its max supply, which is 84.00 million. The current market cap ranking for LTC is #21 at $5.88 billion.

Powered by CoinGecko API

Advertisement

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Advertisement
Continue Reading

Crypto

Cryptocurrency Regulation Debate Escalates as Senators Question DOJ’s Handling of Money Transmission Laws – The UCW Newswire

Published

on

Cryptocurrency Regulation Debate Escalates as Senators Question DOJ’s Handling of Money Transmission Laws – The UCW Newswire

In a recent development that will set the stage for a battle concerning cryptocurrency regulation, United States Senators Cynthia Lummis and Ron Wyden have penned a letter to Attorney General Merrick Garland, expressing their apprehensions regarding the Justice Department’s (DOJ) interpretation of money transmission licensing.

The letter, signed by both senators, raises concerns over the DOJ’s application of money transmission laws in the case against Roman Storm, the co-founder of crypto mixer Tornado Cash. Storm faces charges related to operating an unlicensed money transmission operation, among other serious allegations.

Central to the senators’ concerns is the discrepancy between the DOJ’s interpretation and established definitions outlined by the Bank Secrecy Act and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). According to Lummis and Wyden, non-custodial crypto service providers, like Tornado Cash, do not meet the criteria set forth in these definitions.

The senators argue that bitcoins and other cryptocurrencies have a clear, unilateral owner throughout the transaction process, eliminating any ambiguity regarding ownership. They assert that custody and control are the fundamental factors determining the occurrence of “acceptance and transmission” on crypto networks.

Highlighting FinCEN’s role as the primary interpretive authority on money transmission registration requirements, the senators caution against the DOJ’s broad application of its interpretation. They warn that such an approach could extend regulatory scrutiny to a wide array of services, including internet service providers and even the postal service.

Advertisement

Echoing similar sentiments, crypto advocacy groups filed a joint amicus brief in April with the Southern New York District Court, supporting Storm’s position. Storm’s legal team filed a motion to dismiss the charges in March, arguing that Tornado Cash did not meet the definition of a money transmission business.

However, prosecutors contend that Storm bears responsibility for operating Tornado Cash and allege that the service facilitated criminal activities. They accuse Storm of designing software that aided criminality and assert that Tornado Cash was involved in the transmission of funds derived from criminal offenses.

Storm, who was arrested in August on charges of sanctions violations, facilitating money laundering, and unlicensed money transmission, faces up to 45 years in prison if convicted. He has pleaded not guilty to the charges and is currently out on $2 million bail with travel restrictions.

The letter from Senators Lummis and Wyden underscores the growing debate surrounding cryptocurrency regulation in the United States and the reach of the SEC, highlighting the need for clarity and consistency in interpreting existing laws in the rapidly evolving crypto landscape. Perhaps a new administration will see this and force a clear outline so that compliance can be adhered to clearly by all in the industry as opposed to it being a guessing game.

Terry Jones
Digital Assets Desk

Advertisement

 

Continue Reading

Crypto

Cryptocurrency: 3 Coins That May Spike By 200% This Month

Published

on

Cryptocurrency: 3 Coins That May Spike By 200% This Month

The current cryptocurrency market is full of new coins, waiting to be explored by investors with full might. With the wave of new meme coins sweeping over the space, several meme coins are poised for a massive 200% surge, giving investors a chance to bask in lucrative returns and rewards. 

Here are the top three crypto tokens that the analysts predict will spike by 200% later this month. 

Also Read: Cryptocurrency: 3 New Coins Perfect For Newcomers To Trade In May

Top 3 Coins That May Surge 200% This Month

Three coins falling from the sky
Image Source: WatcherGuru

Cryptocurrency #1: Pepe

Pepe has been forging its own independent price path lately. The token is projecting bullish signs by surging nearly 40% in the last month. Per CoinMarketcap, the token is up 0.56%, trading at $0.000008768. 

CoinCodex, a notable crypto analytics platform, predicts the token to spike by 200% this month, doubling investors’ profits and rewards. 

“According to our current Pepe Coin price prediction, the price of Pepe Coin is predicted to rise by 237.88% and reach $0.00003007 by June 12, 2024. Per our technical indicators, the current sentiment is bullish, while the Fear & Greed Index is showing 57 (greed). Pepe Coin recorded 19/30 (63%) green days with 18.18% price volatility over the last 30 days.”

Advertisement

Cryptocurrency #2: DogWifHat

DogWifHat, popularly known as WIF, has lately been flipping giants like Pepe and Arbitrum in terms of market cap. The marker in itself is a strong indication of WIF’s towering dominance and popularity levels, which are breaching past the domain’s predetermined boundaries. At press time, the token is sitting at $2.91, waiting for a market boost to help the token reach new price highs. 

Per Coincodex, WIF may rise by nearly 200% to trade at $9, a massive price threshold that can triple an investor’s current stash of WIF coins. 

“According to our current Dogwifhat price prediction, the price of Dogwifhat is predicted to rise by 227.81% and reach $9.19 by June 12, 2024. Per our technical indicators, the current sentiment is bearish, while the Fear & Greed Index is showing 57 (greed). Dogwifhat recorded 15/30 (50%) green days with 9.01% price volatility over the last 30 days.”

Cryptocurrency #3: Shiba Inu

The OG crypto meme token, Shiba Inu, has long shed its meme currency persona to develop into a full-fledged, robust coin. The token has been consistently working towards expanding its ecosystem, giving birth to new ShibaHub and Shibarium developments set to bring in new users and traders. Per CMC, the token has noted an uptick of 3%, trading at $0.00002328 at the time of writing. 

According to CoinCodex, Shiba Inu may surge to 220% to trade at $0.00007240 by the end of this month. 

Advertisement

“According to our current Shiba Inu price prediction. The price of Shiba Inu may rise by 225.46% and reach $0.00007240 by June 12, 2024. Per our technical indicators, the current sentiment is bearish, while the Fear & Greed Index is showing 57 (greed). Shiba Inu recorded 14/30 (47%) green days with 6.52% price volatility over the last 30 days.”

Also Read: Pepe Price Prediction for Mid-May: Will It Delete a Zero This Month? 

Continue Reading

Trending