Regulating crypto in the EU will bring in more money

Cryptocurrency regulations will bring in more investors who aren't so sure about investing in new technologies, says Daniele Casamassima, the CEO of Pure, a company that sells cryptocurrency.

Conclusion

  • Cryptocurrency trading figures are impressive, but they aren't as big as the mainstream banking industry or the rest of the financial industry.
  • New money will come into the space if there are good rules.
  • This will help the ecosystem grow in a bigger way.

There has been a lot of talk about crypto regulation among global financial watchdogs in the wake of the conflict in Ukraine. Regulators around the world are coming up with ways to make sure the Russian government and people who have been blacklisted can't get around sanctions by using digital currencies.

This isn't the first time this has come up. The ongoing conflict has just added to the long list of global events that have called for regulators to bring rules to the crypto space. Considering that the cryptocurrency ecosystem has a value of $2 trillion, digital currencies are just beginning to be used by the general public. As a result, lawmakers won't be talking about regulations for digital currencies for a long time.

This is what the EU looks like: It has a lot of different rules and regulations.

By 2022, almost every country will have a different view on how to regulate crypto. This differs by a whole mile from country to country. For example, crypto mining has been banned in Kosovo, and North Macedonia set the example by banning all crypto-related activities, which is what Kosovo did. If you live in Austria or Italy, there are no rules about how you can use crypto. Germany and Estonia, on the other hand, each has its own set of rules that only apply in that country.

Crypto projects that want to be fully compliant in the region will have a high bar to clear, of course I'll show you how it works. At Pure, we have a German asset manager, a payment system from Germany and the UK, and an Estonian crypto exchange. We also have a lot of other things. Every so often, regulators will come and check on us to make sure we're running smoothly and that our clients' money is safe. It includes things like keeping an eye on transactions, talking to lawyers and regulators, and a whole lot more.

Putting rules in place: a good thing

People in Europe seem to be in favor of keeping crypto alive, based on the results of the vote against the EU-wide ban on Proof-of-Work crypto. There are still some people who understand that financial innovation needs to be supported by giving bad people access to parts of the technology that aren't very safe.

People who start new businesses agree that regulations are good for the space. If you look at the digital currency ecosystem and the innovation it has brought, you can see for yourself. It's very important that the industry has a chance to grow. The truth is that in order for the digital currency ecosystem to truly come into its own, there must be a lot of careful regulations in place. Most countries are expected to agree with them.

Setting rules for how the crypto industry should work will help people pay more attention to how products are made, how they work, and how they are delivered so that investors and users can get the best value with the least risk exposures. I think that putting rules in place will make this transition easier.

Crypto Regulation: Making the Way for People to Use It.

Cryptocurrency trading figures, though impressive, aren't even close to mainstream banking or the rest of the financial industry by any of the metrics that are used. Sound regulations will bring in more money and help the whole ecosystem grow, as more conservative investors become more comfortable with investing in new technologies.

However, I think that by 2023, all EU countries will have the same rules. This is how Forex and trading licensing works now. If you follow the rules in one EU country (like Estonia), you can be sure it will work across the whole region. It takes a lot of money and time to make all of this work together. As more and more rules are put in place, the problem will be solved.

When the regulations are in place, more money will come in. This means there will be less money laundering and bad people. This, in turn, is supposed to make people more likely to use digital assets.

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