Crypto exchanges represent one of the main service offerings in the cryptoverse. And that they reach regulations that do not censor and repress them; rather, it drives them to new markets is vital for everyone.
2020 the year of crypto regulations
Although it is not for us, diversity is a headache for regulatory crypto. These differences can come in an infinite variety of features. Either in the user interface, and how the different services interact with each other. And not to mention the technical area of each of these crypto exchanges.
To date, crypto exchanges have had a somewhat “easy” life, at least with regard to the issue of regulations and the amount of bureaucratic paperwork they have to do.
Given the amount of money flowing through some exchanges, it is quite surprising that they have had minimal regulation so far.
Crypto analysts express.
Another thing that makes the road traveled so far very surprising; not only for exchanges; but throughout the cryptoverse in general, it is the fact that most countries worldwide do not allow the free flow of money across their borders. And Bitcoin (BTC) and many of its altcoin did this from day 1.
To counter this, 2019 saw a series of new laws passed in several international jurisdictions. Most of them focused precisely on crypto exchanges; This is why we saw the different changes in usage policies; such as on Localbitcoins.com.
The new laws that will take effect in 2020
The United Kingdom 🇬🇧
Britain was in the European Union long enough to sign several regulations that have to be applied in this 2020.
Consequently, the Financial Conduct Authority (FCA) has created the new “Crypto License”. With it, the United Kingdom imposes an additional requirement for crypto companies within its territory; to provide all kinds of information whenever requested by the FCA.
European Union 🇪🇺
Europe has established new registration requirements in all crypto exchanges for new and old users.
The obligation is only on the collection of data from users of cryptocurrency exchanges. There is no information on particular cases. This registration process will vary from state to state. Therefore we must expect them to be applied during the course of this 2020.
For example; One of these regulations we could see in LB.
Hong Kong 🇭🇰
From now on, companies looking to offer commercial cryptocurrency services will have to register to obtain a license like the UK in Hong Kong.
It is worth noting that it is here that the crypto exchanges were born. And that initial impulse caused many of them to settle here.
But now that everything has changed, Singapore requires all crypto exchanges to register. The Monetary Authority of Singapore (MAS).
MAS is a more than complete financial oversight body that will inspect all elements of crypto exchanges; including trading operations; and buying and selling crypto assets.
A migration of exchanges will begin
All these new laws are designed to ensure that companies operating from “On Shore” locations; with the intention of guaranteeing the flow of clean money entering or leaving the borders of these countries.
Those crypto exchanges that cannot adapt to the new regulations that are just around the corner; and the next to come. Most likely, they begin to migrate from country to country, which do not have so many controls; at the end; What they are looking for is to protect the consumer.
Economics student of the UCV. Defender of individual freedoms and of course also of the market and cryptocurrencies.