More Failed Regulations Set to Launch
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More Failed Regulations Set to Launch
It's been a little over a year since the words Crypto Regulation became the latest fad that a number of investors are awaiting in the hopes of making digital currency safer. The problem is that we are not anywhere close to having anything that will actually deal with many of the issues that plague the sector, yet everyone keeps reporting that regulations are coming.
At this stage sad to say but it will be a long time before anything that remotely addresses any of the issues is released or pen is put to paper. The latest EU Crypto reforms are probably the only regulations that we will see for sometime and even then they only apply common sense holding exchanges accountable.
Much of their development came about with the FTX collapse as that was a failure on another scale with it's CEO donating to politicians and promoting a booming sector, unfortunately once the curtains were drawn the only thing holding up FTX was smoke and mirrors.
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New York State Department of Financial Services
In another wacky move that won't see much change is the recent statement by New York's Financial regulator announcing that it will now be charging crypto businesses fee's up to 5 times per financial year to undertake an annual supervision and examination.
In short a new tax is being created in New York to cover the costs of doing the work the financial regulator is required to do to ensure investors are protected. The problem with the new tax or charge is that it puts crypto businesses off-side and more than likely will seek another state or country to operate from.
We've already seen the challenges involved in bringing Do Kwon and other crypto failures to justice when the operate outside of the US or nations with agreements. Rather than making things easier for the sector which has shown no sign of stopping, New York is looking to make the costs of operation increase to the point the industry is driven out of it's state.
Who's using Crypto the most?
Research undertaken by Bitcoin.com has unearthed some interesting facts about the adoption and uptake of digital currencies. The top nations leading their adoption and use aren't entirely first world countries and their main use is to transferring remittance fast and cheap.
Those smaller nations are also leading in the digital currency real with places like the Philippines growing in approved crypto exchanges. What all this means is that there is a growing consumer base that is already utilising digital currencies, another user base being hackers and scammers growing and a resistant first world that doesn't know how to handle it or still believes Crypto currency is a "fad" that will soon end.
Crypto crime has now become that prevalent in the United States that it allegedly accounts for 0.01% of the nations GDP that indicates that this isn't a fad anymore.
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Crypto Scamming - The North Korean Business Model
Crypto currency is not so much a fad in North Korea with the nation utilising Crypto Scams to generate over 10% of the nations GDP with most the funds going towards funding it's nations weapons projects.
The next time you see on the news North Korea firing ballistic missiles a sponsored by Bitcoin logo should probably be attached to the rocket. Russia and China also surge ahead with crypto crime and I will say these figures are massively reduced because I noticed little ol Australia has only lost $130,000 in crypto scams. I know that is wrong because I had $100,000 in Luna that was going to be used to develop Skippy and Do Kwon ruined Luna and took off with the cash somewhere near Serbia.
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smokes and mirrors
So as all things in the political spectrum they are filled with smoke and mirrors and once again as the sector continues to grow at it's own pace politicians are slacking in being able to adequately address poor performance.
In the end if you're participating in the wild west of finance be sure to look after yourself, believe me I know having lost a lot of money and having a project be impacted. It's devastating. But there are people who have been hit harder than I, just keep moving forward.
Image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
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The regulations are a huge issue but I don't think I can trust New York at all after what I heard about what Loius Rossman went through when he moved his business over to Texas. Apparently, what he believes happened was someone making a mistake in an excel sheet and it caused a bunch of people who opened up a business on the same date owing taxes. He obviously paid them and he blames that for the reason why he couldn't get a loan because they placed a lien against his business.
Also, the process for him to get that information was tedious and I think they are just trying to make up for the taxes they lost when people are leaving the state/city.
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It will cause more businesses to leave the state if they are trying to ensure the sector doesn't come to NY than it is a good move. But bad for future Fin Tech and industry growth.