On March 9, 2022, President Joe Biden officially signed an Executive Order on Digital Assets, comprehensively describing the framework for U.S. digital asset regulatory action. This represents a major effort by the U.S. government to control the fast-growing industry, and means that blockchain will usher in “Us-style regulation”.
In fact, it’s not just the U.S. government that has strengthened its regulation of crypto. In recent years, as cryptocurrencies have tended to go mainstream, more and more countries have also started to tighten cryptocurrency regulation and have promulgated relevant regulatory policies. A dynamic and comprehensive regulatory system including the traditional licensing regulatory system, sandbox regulation and industry self-regulation has basically been formed.
For example, many countries in the Americas, Europe, Asia, Africa and Australia, including the United States, South Korea, Russia, India, Ukraine, South Africa and Australia, have started to impose taxes on crypto transactions at a rate of 10% to 30%.
In addition, various countries and regions such as Japan, Switzerland, Thailand, Singapore, and Hong Kong, China, have also included exchanges into the regulation by issuing licenses. From the viewpoint of the extensive compliance constraints around the world, “licensing” may become a major trend in the future.
Therefore, compliance development is not only a policy requirement at the national level to promote the healthy development of the cryptocurrency market, but also a realistic need for industry practitioners, especially cryptocurrency exchanges, to seek a fair development environment and gain wider recognition and participation, and a thirst for safety and security for numerous investors.
In terms of embracing compliance, the veteran cryptocurrency trading platform CoinW can be said to be at the forefront of the industry. It has been pioneering on the basis of holding a number of national and regional financial regulatory licenses such as the US MSB financial license, Singapore MAS license, and SVGFSA license, and has recently received a cryptocurrency regulatory license from the Financial Crimes Investigation Service (FCIS) of Lithuania.
Mingguo Bai, CEO of CoinW, said, “Globally, cryptocurrency regulation and compliance will become normalized. In the future, we will still actively embrace regulation, strictly comply with the laws of the countries and regions where we do business, and provide users with compliant and secure crypto asset management and blockchain application services. At the same time, CoinW is also continuing to apply for legal licenses in more countries or regions to continue to lay a solid foundation to advance the platform’s global strategy of compliance and provide service protection for more users.”
In short, only when cryptocurrency exchanges find their own compliance position can they bring more security to investors and play a greater influence in the industry, promoting the long-term and benign development of the crypto market. And those exchanges that do not focus on compliance, do not comply with regulatory requirements, and lack the ability to accumulate compliance technology and business innovation will definitely be eliminated from the market. Therefore, compliance is an inevitable trend in the future cryptocurrency market.