Why crypto companies must first self regulate before regulations arrive
Whether the crypto market has been up or down, cryptocurrencies continue to break more barriers - not just in popularity, but in mainstream acceptance. But before crypto truly begins to dominate our lives like traditional currencies do now, it's important that crypto remains as a stable payment option, and one that we can use responsibly.
So far, public officials across the globe are trying to form new rules to manage cryptocurrency markets, but many fear this could end up in overregulation.
Before that happens, crypto companies can take proactive steps to better protect their investors, while protecting the spirit of decentralization, at the same time.
By self-regulating, crypto companies can help authorities combat crimes like fraud, scams, and financing of terrorism; thus inspiring public officials outside of the crypto industry to shape policies that encourage growth and innovation in the crypto space. Like in the case of BitOasis, the Middle East's largest crypto exchange, which has Anti-Money Laundering (AML), and Know Your Customer (KYC) policies in place that makes it the region’s most secure crypto custody solution.
Last year, BitOasis ADGM registered entity was granted a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM). This key regulatory approval authorizes BitOasis to operate a regulated Multilateral Trading Facility (MTF) and Custody platform for Virtual Assets in ADGM in the UAE.
This milestone came after authorities granted the first In Principal Approval (IPA) for BitOasis in April 2019, offering crypto investors access to a secure, regulatory compliant and institutional-grade platform.
Just last month BitOasis also received provisional approval from Dubai's Virtual Assets Regulatory Authority (VARA), and its license application is underway.
Of course, some in the crypto community would rather not encourage regulation of any kind, but that notion is not realistic. The problems with El Salvador's Chivo wallet demonstrated how quickly security problems can hamper even the best-intentioned crypto regulations.
Meanwhile, different nations are tailoring their economic policies to include cryptocurrencies in their budgets. The Russian government is expected to reportedly collect up to $13 billion in crypto tax each year, according to local estimates. And, recently, India and Kazakhstan called for tax on crypto and crypto mining. In the Middle East, UAE is fast emerging as a crypto hub with plans for regulations and a dedicated Crypto Centre that is an ecosystem for cryptographic and blockchain technologies. This could only mean that crypto is most certainly here to stay, and regulations will drive the industry further.
To learn more, visit BitOasis, the safest place to buy, sell or store Bitcoin, Ethereum and over 40 popular cryptocurrencies.