New money, new law
The present world presents us with new challenges. Technologies that we have at our disposal today did not even dream of our great-grandparents. Virtual reality, blockchain, social networks and smart home furnishings all mean that we need new solutions to protect their users. And it’s not just about the issue of personal data, but also about banking security and how to punish virtual criminals.
Nevertheless, there is much talk about introducing cryptocurrencies on a larger scale and more and more users not only pay with them for their purchases, but also it is a form of investing for them. Many countries are looking at such “experiments” as El Salvador, where Bitcoin already functions as the national currency (next to the traditional one). Based on their experience, new regulations or solutions will probably be created in order to improve such connections and make users feel safe.
According to the lawyers of the American company Choate Hall & Stewart LLP, the lack of legal regulations created a very good basis for instituting court proceedings. The old rules are used in disputes against cryptocurrency users and investors, only their application is changing. From the report of this law firm, it can be concluded that such practices will become more frequent given the development of digital currencies. And it is not only about private disputes, but also the greater zeal of the United States government to prosecute activities deemed illegal. For example, the US Securities and Exchange Commission has already filed a lawsuit against the creator of Ripple and the LBRY platform for offering “unregistered securities in the form of tokens.”
It is not without reason that the USA is mentioned. The world is quickly adapting American solutions to traditional finances, so it can be similar with cryptocurrencies. Currently, Congress is already dealing with the report of the financial markets group. We read in the report that digital currencies must be provided with federal oversight that is consistent and comprehensive. The greatest responsibility will then rest with the issuers, which are likely to be audited, and the remaining formalities that follow such regulations will be a costly burden for them.
Europe also sees cryptocurrencies and their benefits. Faster settlements, elimination of credit risk are an opportunity for modern trade. The EU dealt with the regulation of cryptocurrencies in 2018. The project is called Markets in Crypto-assets Regulation. It assumes the registration of cryptocurrency service providers and thus the protection of consumers. Such registration would be accepted in every EU country and thanks to it, entities could carry out their activities in each of the member states. The entities would then be subject to the European Banking Supervision, which would impose additional requirements on them, such as liquid capital, management or security. The goal is for the project to come into force in 2024.
At the G7 summit in Davos, the president of the French bank, François Villeroy de Galhau, said: — […] We call for fast, global and strong regulation of cryptocurrencies around the world. This will protect investors and save the world from unnecessary fragmentation. (…) Regulation of cryptocurrencies is not bureaucracy. It makes our citizens feel that globalization can be fair.
