{"id":166813,"date":"2021-01-30T15:37:00","date_gmt":"2021-01-30T12:37:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/to-see-eye-to-eye-crypto-industry-should-start-embracing-regulation\/"},"modified":"2021-01-30T15:37:00","modified_gmt":"2021-01-30T12:37:00","slug":"to-see-eye-to-eye-crypto-industry-should-start-embracing-regulation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/to-see-eye-to-eye-crypto-industry-should-start-embracing-regulation\/","title":{"rendered":"# To see eye-to-eye? Crypto industry should start embracing regulation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d8ac84b66e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d8ac84b66e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/to-see-eye-to-eye-crypto-industry-should-start-embracing-regulation\/#Regulatory_waters_remain_murky\" >Regulatory waters remain murky<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/to-see-eye-to-eye-crypto-industry-should-start-embracing-regulation\/#Digital_asset_regulation_is_not_a_foreign_concept\" >Digital asset regulation is not a foreign concept<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># To see eye-to-eye? Crypto industry should start embracing regulation <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvZGUwZjdjNDAtNDY1MS00Yzc4LWJjYmMtMmFkMDZiODY5MjI1LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>Since the exuberant crypto bull run of 2017, regulators have increased their activity in the industry. United States governing bodies such as the Securities and Exchange Commission, the Department of Justice and the Commodity Futures Trading Commission have all pursued various types of legal enforcement.\u00a0<\/p>\n<p>From December 2020, there has been an even further regulatory push, including a proposal from the Financial Crimes Enforcement Network aimed at heightened crypto wallet overwatch. What do crypto industry players think of regulation at present? <\/p>\n<p>Dean Steinbeck, co-founder of Horizen Labs, told Cointelegraph that, indeed, in conjunction with increasing institutional involvement, \u201cnotices from entities such as the SEC, OCC, IRS and FinCEN have become more regular.\u201d He added: \u201cOver the recent few months, we\u2019ve continued seeing an increase in institutional adoption of Bitcoin\/cryptocurrency slowly but surely closing the educational gap between traditional and decentralized finance.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Regulatory_waters_remain_murky\"><\/span>Regulatory waters remain murky<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Over the course of 2020, a number of sizable mainstream entities and individuals, including MicroStrategy, MassMutual, Square and Paul Tudor Jones, unveiled their large purchases of Bitcoin. In 2019 and 2020, U.S. regulators increased their activity in the space, both in terms of enforcement as well as clarity.<\/p>\n<p>\u201cHowever, these notices and regulations are often convoluted and unclear, which, in turn, makes them meaningless and misguided in the eyes of the crypto community,\u201d Steinbeck said, adding:<\/p>\n<blockquote><p>\u201cWhat is preventing the creation of transparent and fair regulation? Those drafting these regulations do not interact with crypto on a day-to-day basis. If we can change the system in which these notices, rules and policies are created, the community may be more receptive to proposed regulations being put into place.\u201d<\/p><\/blockquote>\n<p>The past two years or so have yielded a number of regulatory actions. The Office of the Comptroller of the Currency gave national banks the go-ahead for crypto custody. The Internal Revenue Service attempted to issue clarity on taxes, although the agency\u2019s effort added confusion in the process. The IRS also added a question about digital asset ownership to its tax reporting forms.<\/p>\n<p>More recently, the CFTC and DoJ went after crypto derivatives exchanges BitMEX, the SEC filed a suit against Ripple, claiming its XRP asset as a security, and FinCEN proposed a rule to monitor the flow of funds to self-custodied crypto wallets, as well as between platforms. <\/p>\n<p>\u201cAs an industry, we\u2019ve come a long way but, in the same vein, are just getting started,\u201d Konstantin Richter, founder and CEO of Blockdaemon, told Cointelegraph when asked about his thoughts on the current crypto regulatory scene, adding: \u201cThis past year, crypto regulators seemed to be moving faster and asking better questions \u2014 not easier questions per se.\u201d <\/p>\n<p>Richter noted a present opportunity to guide governing bodies in learning more about the industry. He added:<\/p>\n<blockquote><p>\u201cI think we are collectively in a position to put our best foot forward to encourage and inform regulators on the best ways for them to be partners in innovation with the crypto industry at large and also enact more of the safeguards and standards required for continued institutional and mainstream adoption.\u201d<\/p><\/blockquote>\n<p>In terms of educated government rule, President Joe Biden\u2019s pick for SEC chairman, Gary Gensler, will likely bring a wealth of crypto knowledge into his position. Gensler taught a course on crypto and blockchain at the Massachusetts Institute of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">Technology<\/a>\u2019s Sloan School of Management. Recent Cointelegraph reporting reveals Gensler\u2019s immense knowledge of the industry. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Digital_asset_regulation_is_not_a_foreign_concept\"><\/span>Digital asset regulation is not a foreign concept<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u201cCrypto regulation has always been an important topic, with <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> or even just rumors causing major price fluctuations in the past,\u201d Philip Salter, head of mining operations for Genesis Mining, told Cointelegraph. <\/p>\n<p>Regulation has increased in line with crypto\u2019s growth as an asset class. Part of its departure from a regulatory gray area can include government agencies fielding comments from the sector. Industry participants, for example, flooded FinCEN with comments recently on the governing body\u2019s proposed crypto wallet regulation.<\/p>\n<p>\u201cWe are seeing a much more open and knowledgeable discussion on crypto regulation lately,\u201d Salter said. \u201cThe big new topic seems to be if KYC is required for personal wallets and coin holdings,\u201d he explained, adding:<\/p>\n<blockquote><p>\u201cThis would have major implications and possibly cause some panic if enacted in the U.S. I think, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly, it\u2019s the best not to worry too much about the short-term rumors and regulations but, instead, to take a step back and acknowledge that it will take years to reach a final conclusion on crypto regulation. We are talking about a financial revolution here, there will surely be battles.\u201d<\/p><\/blockquote>\n<p>Erik Finman, an early crypto buyer who became a millionaire via his Bitcoin investments, sees regulation as a long-standing point of importance. \u201cRegulation has always been the greatest challenge to cryptocurrency, and I think there\u2019s been a bit of a pause with some of the political turbulence focusing on other things,\u201d Finman told Cointelegraph, adding: <\/p>\n<blockquote><p>\u201cUnder the new administration, cryptocurrency advocates will need to do their best to work with the government to create win-win scenarios.\u201d<\/p><\/blockquote>\n<p>As the U.S. continues firming up its government\u2019s roles after a presidential changeover on Jan. 20, 2021, the atmosphere around crypto regulation remains to be seen. Gensler as the SEC\u2019s chairman will bring a wealth of crypto knowledge to the commission, which could pave the way for educated regulation. <\/p>\n<p>Janet Yellen, the president\u2019s Treasury Secretary choice, however, worries about crypto\u2019s role in criminal transactions, as per her recent comments. Meanwhile, the industry awaits new developments on FinCEN\u2019s wallet regulation proposal, for which the agency recently extended the comment period. <\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/to-see-eye-to-eye-crypto-industry-should-start-embracing-regulation\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# To see eye-to-eye? Crypto industry should start embracing regulation &#8221; Since the exuberant crypto bull run of 2017, regulators have increased their activity in the industry. United States governing bodies such as the Securities and Exchange Commission, the Department of Justice and the Commodity Futures Trading Commission have all pursued various types of legal&#8230;<\/p>\n","protected":false},"author":1,"featured_media":166814,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvZGUwZjdjNDAtNDY1MS00Yzc4LWJjYmMtMmFkMDZiODY5MjI1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,117,70934,4965,67874],"class_list":["post-166813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-business","tag-regulation","tag-technology","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/166813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=166813"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/166813\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/166814"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=166813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=166813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=166813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}