Asia promotes crypto clarity amid regulatory uncertainty in the U.S.
Good day to you all in the LeoFinance community.
It’s always an interesting read when you get to know that the world keeps going digital and even the more the digitalization, the more people embrace the innovations. Different countries make their policies about cryptocurrency, some give the citizens full-time access and freedom to use, and for some, there are laid down regulations to follow and that would stand as a guide against trespassing the limits.
Asia has been on a good stand in promoting crypto clarity amid the regulatory uncertainty in the United States. This clarity would in one way or the other make the region more attractive to foreign and local investors.
Cryptocurrency regulations in Asia have moved faster than expected and it moved along with more clarity, it’s either a green light or a red light, compared to that of the U.S. and not that the United States is not into crypto but there are strict regulations and this must have been a kind of restriction to the full access to what cryptocurrencies are all about.
The report has it that early this month, Hong Kong officially opened crypto trading to retail investors and upgraded the licenses of two exchanges to operate in the country. Hashkey and OSL exchanges can now expand beyond professional investors and also include retail investors. This is just another amazing step from the country and it would give room for growth and improvement. It would also add more value to the market value since there are additional amounts to the number of users making transactions with time.
Virtual assets are getting more recognition which will further boost investors' confidence and make Hong Kong more attractive as a potential global virtual asset hub. Some exchanges have been trying to apply for a virtual asset trading license in the country.
Hong Kong and Singapore are said to have been using similar approaches to maintain very high regulatory standards which would surely pay out well for them in the end.
Last year Hong Kong said it “recognized the great potential of distributed ledger technologies and web 3.0 becoming the future of finance and commerce” and expects to enhance efficiency and transparency with proper regulation. I see that to be the raw fact because the way the advancement in technology and the improvement over time could tell a lot as evidence of that.
The evolution of digital currency, the internet and eCommerce, online shopping and marketplace, online payment, cryptocurrency, and many more are the way forward.
Singapore has also been a front-runner in cryptocurrency regulation. The Monetary Authority of Singapore granted Blockchain.com a license in August, which serves as an upgrade to the use with approval it got in October. A few other players like Ripple also received in-principle approval in June. This means these two bodies, Blockchain.com, and the Ripple have full access to providing regulated crypto services across the whole of Singapore.
On the other hand, Countries like Thailand and Indonesia have banned the use of cryptocurrencies for payment but allow it to be traded as a commodity. This is still fairly more acceptable than a total ban without any regulations or policies. Gradually they might understand what it takes to embrace it as a means of payment. This could also be due to the volatile nature of cryptocurrency, it won't come easy as a means of payment with its unstable nature, and price fluctuations could cause a lot of effects.
Hong Kong got the opportunity and hindsight to explore the crypto winter and see what other crypto regulatory bodies have done to improve and roll out their regime.
— Janice Goh
The other way round, some exchanges have been embroiled in lawsuits with the United States Security and exchange commission. Coinbase and Ripple got accused of a securities law violation. These two exchanges and some other crypto firms have threatened to leave the U.S. in response to the SEC’s crackdown. The outcome might not be felt immediately, but if these should come to pass it won't be easy for anyone who wants to invest in cryptocurrency to happen.
Asia’s regulatory clarity
Singapore and Hong Kong offer far more operational clarity for many industry players across the Pacific.
Blockchain data firm and Chainalysis has said in one of its videos that there is a need for crypto regulation to protect the “good players” granting them a secure and enabling environment around the crypto-verse.
Singapore’s Payment Services Act — a framework for regulating payment services and the provision of crypto services to the public — came into effect in January 2020.
“Whereas in Hong Kong, it had the opportunity and hindsight to go through the crypto winter and look at what other regulators have done to enhance and roll out its regime,” said Goh.
Singapore has advanced the supervision of crypto firms as it gave orders to make customers' assets safe under a statutory trust before the year runs to an end. On Tuesday, the city-state put forward some rules for stable coins which is a type of digital currency. Having this done has made them emerge as one of the first countries in the world to do so.
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Posted Using LeoFinance Alpha