Regulations Start Hitting Crypto Exchanges

By xuanling11 | Crypto Learning | 23 Nov 2021


eToro announced to delist Cardano and Tron trading for U.S. customers started on December 26th, 2021. Such an announcement has shocked many users from eToro and many people may wonder what has just happened?

 

Evolving regulatory environment

eToro is siting the reason that sparks speculate about tax implications that they are the custodian of the wallets yet earning staking as their part of rewards. Regulators likely enforce crypto exchange platforms like eToro files taking regards as their part of revenue.

 

Other potential regulations

When Cardano launched in 2017, they did ICOs that was similar to many others. They raised their fundings through ICOs and gained incentives as momentum to start up their projects. The problem is that the SEC or U.S. Securities and Exchange Commission is looking into any financial activities that are similar to IPO like fundraising to bring enforcement into crypto companies. Although Cardano was smart enough to bend rules around and ICOs in Japan, the SEC may find a route to enforce their rules into cryptocurrencies.

 

Regulations expedite

As cryptocurrency becomes more and more mature, regulators are worried about the future of their financial system that their regulations are outdated and the technology is about to obsolete. Many countries are seeking more enforcement to slow down crypto development and bring them to discuss with regulators.

 

Double-edged sword 

Many crypto communities believe that regulations will slow down crypto development and discourage projects to continue evolving. Regulators argue that they are protecting consumers from ever being scammed away with their money. Both sides are right and both sides may need to work together to move forward.

 

Regulations will not work if it acts as a tool to prevent competition

Many others may believe regulations just are another way to push crypto adoption away and away traditional financial system claims its domination. If that is the case, then regulations may backfire and crypto likely will develop to have regulations resistance features.

 

NFTs are regulation resistance digital products

Non-fungible tokens or NFTs are regulation resistant because it is self-validating digital products that you create and sell to others. You are selling your own creations that back from cryptocurrency valuation. 

 

In conclusion

Regulations are outdated tools for the government to restrict the growth of digital technology. They should find a better way to help communities and people to understand products.


Photo by Rowan Freeman on Unsplash

Note: the post was shared on multiple platforms.

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