Regulations increase the attractiveness of cryptocurrencies
A recent MLIV Pulse study found that most people polled were positive about government efforts to regulate cryptocurrency laws, Bloomberg said. In the United States, for the past few months, regulators and the US Securities and Exchange Commission (SEC) have been working to increase supervision and control over cryptocurrency trading companies. These actions not only had a tangible effect on the state budget, but also increased trust in those companies that adjust their regulations to the introduced regulations.
The most spectacular manifestation of the fight against dishonest companies is the action carried out by the SEC in the case of Yuga Labs — the creators of the famous NFT Bored Ape Yacht Club collection.
But there are more risks waiting for investors. They are often not properly informed about the risks, the lack of regulation can lead to financial instability, complicate market manipulations and financial crimes. That is why transparency, sharing information, authorization and supervision over transactions are so important.
Meanwhile, you can already notice the change that has taken place in the area of using cryptocurrencies for criminal activities. Greater control of companies in the cryptocurrency industry, Know Your Customer procedures and the ability to track and idealize cryptocurrency transfers are to prevent money laundering and terrorist financing.
The European Union also called on Member States to tax cryptocurrencies in a fair, transparent and effective manner.
In addition to the obvious problems with assets, there is also the area of ecology. Cryptocurrency mining requires a lot of computers running non-stop. Their work leaves a huge carbon footprint. New regulations are being prepared in the European Union to push crypto miners towards sustainable activity.
Enthusiasts and promoters of digital assets believe that digital assets are the future. Still, a group of Euro-skeptics believe that the cryptocurrency industry is simply a Ponzi scheme. However, the interest shown by central banks and the new regulations that come into force fhis motivates investors to be more active and adopt more.
