Regulator’s pressure is a challenge for innovation in crypto
Passed time there are more and more initiatives on various restrictions for cryptocurrencies and blockchain industry are coming out from regulators. The tightening concerns both innovative tech services, DeFi, exchange, stablecoins and even NFTs. Here are just some of these initiatives.
In late October, the Monetary Authority of Singapore (MAS) proposed a ban on lending in cryptocurrencies. The crypto lending market has a huge potential for development, and this market may be of particular interest to residents of developing countries, where there is a lack of available credit.
The U.S. is also tightening regulation of cryptocurrencies, and at the beginning of the year, taxation of the industry has increased significantly. There are similar trends in other countries around the world. By the way, this makes investing in cryptocurrencies through standard brokers risky. That’s why we advise all crypto investors to use innovative private funds like X11 Finance.
There are a number of other measures that the Biden administration plans to implement to regulate cryptocurrencies. The main task set by the U.S. administration is to reduce risks in order to protect investors and financial stability. Regulators will also fight illegal activities in the field of cryptocurrencies, regulation of cryptocurrency exchange will be strengthened and licensing requirements for operations with digital money and NFT will be tightened. There are plans to increase fines for illegal transactions. The U.S. Treasury Department will create its own bills to regulate NFT and DeFi in 2023.
The UK s also keeping up with the U.S. as it plans to tighten regulation of stablecoins, making them a separate class of settlement digital assets. It is possible that regulation of Stablecoin will continue to be tightened, especially in Western countries. Despite this, it is still possible to invest in crypto through stablecoins issued in other jurisdictions. For example, such as BUSD. This is the type of stablecoin used by X11 Finance.
Existing restrictions on cryptocurrency payments by banks and citizens of certain jurisdictions are only expanding due to sanctions, which negatively affects global trade and finance. Recall that in October, a new package of EU sanctions came out, which prohibits Russian citizens from holding accounts in regulated European cryptocurrency exchanges. Similar restrictions apply to investment companies, so investing through classic brokers presents certain risks. Our fund X11 Finance allows investors to reduce these risks.
The founder of X11 Finance Pavel Andreev is sure that sanctions and restrictions will not be able to stop the development of decentralized economy, and money free of restrictions is an inalienable right and need of the inhabitants of the planet earth.
New restrictions on Stablecoin, NFT and DeFi will simply lead to an increased demand for services free of these restrictions. This is exactly the kind of private investment service that works with both classic stock assets and crypto assets that X11 Finance provides to our clients.
