Crypto regulation, overview between certification and prohibition

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European Securities and Market Authorities may soon regulate some ICOs

crypto regulation

The European Securities and Market Authorities could put in place a crypto regulation framework around certain Initial Coin Offerings (ICOs), studying them on a case-by-case basis.

The European financial markets gendarme intends to adopt an approach identical to that of his American counterpart. The Paris-based supervisory authority will examine different ICOs to determine, on a case-by-case basis, the crypto regulation approach that should be applied to them.

The Reuters news agency reports Monday’s remarks by its chairman Steven Maijoo. For the manager, some ICOs would have characteristics similar to those of traditional investments, and should therefore be subject to a rigid framework.

“The question is, what are we doing with these ICOs that are outside the crypto regulation framework? We will study them in a collegiate way. We plan to deliver an opinion by the end of the year, “he told the Committee on Economic and Monetary Affairs.

And to add that most ICOs had “difficulties” to report their strengths against financial instruments traditionally used to raise funds.

crypto regulation

Crypto regulation and a lack of protection

Risky investment The various member countries of the European Union have not, for the moment, decided to adopt a common approach to cryptocurrencies.

Wishing not to hinder the growth of a promising sector because of a too strict crypto regulation framework, the European association has for the moment been content to put in place anti-money laundering measures around the sector and issue investor warnings about the risks associated with digital assets.

But according to Andrea Enria, the president of the European Banking Authority, this policy “does not bring the expected results”. The leader called for a stronger crypto regulation framework at European level.

“Public warnings do not seem to be effective enough for savers to realize that there is a lack of protection for these investments,” he said.

A report published in September by European finance ministers called for a unified policy on entities interacting with crypto regulation. In particular, they explained that it was almost impossible for them to directly control the use of digital assets.

Jay Clayton, president of the Securities and Exchange Commission (SEC) – the US Securities and Exchange Commission – said some sales of tokens were likely to constitute offers of tittles. And that they would therefore fall under the blow of a rigid regulatory framework. The federal agency has yet to determine the corners that fall into this category.

According to some media, Chinese investors have found several parades to circumvent the ban on cryptocurrency trading in place in the country.

 

Crypto regulation, Tether and VPNs to the rescue of Chinese traders

Despite the restrictions put in place by the government, several observers believe that many Chinese still manage to speculate on cryptocurrencies.

The South China Morning Post reports that these users rely on the “stablecoin” Tether to use crypto-trading platforms. They connect to it through virtual private networks (VPNs), which allows them to protect their anonymity.

The media adds that the government has not yet taken steps to try to block the use of these networks.”Chinese regulators have sufficient technical possibilities to prevent the use of VPNs. However, this process usually requires negotiations with multiple stakeholders to agree on the configuration of a firewall. So it makes the process longer to achieve”.

While the authorities have been hostile to cryptocurrencies for several years, they decided last year to ban local exchange platforms. Some of them manage to get around this crypto regulation. Indeed just by moving their servers out of the country, and by registering abroad.

crypto regulation

Crypto regulation, China attacks foreign platforms

China’s ban. At the same time, China’s battle against foreign exchange platforms has recently intensified.

The South China Morning Post notes that China has blocked the access to 124 crypto-exchanges platforms. It caused a 33% drop in volumes recorded on seven of the most popular platforms among Chinese traders.

The director of operations of the Hong Kong platform TideBit, Terence Tsang shared his point of view on this kind of crypto regulation. “The recent warning and potentially increased oversight on foreign platforms. It includes some small platforms that have registered as foreign entities. But are actually operating from China, and that have outsourced their operations by designating a Chinese company “.

The People’s Daily is the official press organ of the Central Committee of the Chinese Communist Party. In its columns, the newspaper criticized the other media linked to the crypto sphere.It claims that they manipulated the markets. In the following month, WeChat blocked accounts of the users, saying they did not follow the rules for email applications.

AliPay and WeChat Pay said they would work with Chinese crypto regulation. Hence to monitor and prevent crypto transactions on their platforms.

When crypto regulation faces crypto prohibition..!