In an industry where billions of dollars continue to be added and taken daily, the state of crypto regulation has become an essential topic that trends on the various search engines and social media platforms.
On Tuesday, January 17, the Commissioner of the United States Commodity Futures Trading Commission (CFTC) Caroline Pham told Bloomberg that she continues to urge regulators to develop a clear regulatory framework for the crypto industry.
The Commissioner has taken part in more than 70 meetings concerning the state of regulations about the entire decentralized finance industry. While the Securities and Exchange Commission (SEC) in addition to the CFTC has been slow in drawing a permanent regulatory solution in the United States, she admitted that discussions are far advanced in the rest of the world.
With that said, she wants crypto financial instruments to be held to the same regulatory standards as other financial instruments.
There are no crypto regulations in China as the use of all forms of digital assets has been banned by the government. India has found a strategy to reduce the use and engagement of cryptocurrencies by imposing a 30% capital gains tax. Australia does not have legislation that tackles cryptocurrency, The Financial Services Agency (FSA) of Japan has introduced a TRAVEL RULE which will be taken effect in May 2023. The Travel Rule will play an integral role in the reduction of cryptocurrency-inspired money laundering. The growth in the trading volume of cryptocurrencies in Africa has led to the International Monetary Fund (IMF) calling for states to regulate the emerging industry. Without regulation, the IMF believes crypto could pose macroeconomic stabilities in developing economies. Meanwhile, in Europe, the Markets In Crypto Assets (MiCA) vote has been moved to April 2023. MiCA will set a standard regulation for crypto assets at the European Union level.
Despite the lack of clarity on regulation, the crypto market has rebounded positively. After shedding a significant part of its total capitalization, there has been a 25% increase in value from $758 billion to $950 billion.