- Cryptocurrency and their legal status is still something that remains to be up in the air in the United States.
- The country has had strict financial wars with several regulations in place, while they deny permission for foreign exchanges.
Cryptocurrency and their legal status is still something that remains to be up in the air in the United States. The country has had strict financial wars with several regulations in place, while they deny permission for foreign exchanges.
Last year, the Financial Action Task Force published new guidelines which require cryptocurrency platforms based in the United States to collate all information in regards to customer transactions. Many of these platforms refused to collect such data as it would be a breach to their customer’s privacy.
The chief compliance officer at Coinbase, Jeff Horowitz commented on this and stated that applying banking regulations into the cryptocurrency industry would see more people conducting person-to-person transactions. This would result in lower transparency for law-enforcement.
He has further said, “the FATF had to consider the many unintended consequences of applying this specific rule.”
These kinds of strict regulations all around the crypto space ask more questions than they answer.
The CEO of Binance U.S, Catherine Coley recently spoke in a podcast where she set out to make sure that the United States doesn’t feel its falling behind due to the stern regulations. She further noted that she is not a big believer in recreating the current Wall Street environment. Coley said:
“There’s such a great amount of talent here[the US]. There is such a keen understanding of where we can be building maybe something that has not been built before.”
Cryptocurrency platforms based in the US have got many difficult times ahead of them. Talking on why the country laid all these kinds of regulations in the first place, Coley said:
“There is so much sophistication that can come from the United States’ capital markets. The liquidity aspect is one worth preserving. So I completely see why regulators aren’t opening up their doors. It would possibly damage the integrity of the US capital markets.”