Cryptocurrency has been synonymous with a lack of regulation and a Wild West ethos.
This has led to speculative and non-core products like meme coins, blockchain games and yesteryear’s NFTs and ICOs.
But all that is beginning to change as regulated economies across the world have started to provide and enact frameworks for integrating digital assets into their financial ecosystems. The European Union’s Markets in Crypto-Assets regulation establishes a clear compliance structure for crypto firms. Meanwhile, in Asia, Singapore’s Payment Services Act offers institutional players a stable environment for participation.
As recently as Wednesday (Feb. 19), Hong Kong announced it was expanding the ways investors can trade digital assets as it looks to position itself as a regulated digital asset hub.
Even Switzerland, long known for its financial conservatism, has made moves in digital asset adoption under the Swiss Distributed Ledger Technology (DLT) Act, which enables tokenized securities and digital asset trading.
Compared to these regulatory advancements, the United States has lagged behind in crafting a unified approach, leaving businesses and banks in a complex regulatory gray zone. However, this does not mean U.S. firms should ignore digital assets, particularly as the regulatory environment softens. Instead, they can take cues from how global peers are using digital assets within regulatory frameworks.
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