Cryptography is a growing field that is attracting more and more investors, entrepreneurs and users. But it also poses challenges for regulatory authorities, who seek to protect consumers, prevent fraud and combat money laundering. In this sense, the SEC and the European Union plan to intensify their approach to enforcement and regulation of the crypto sector in 2024. So what are the main issues and expected changes?
SEC Continues Crackdown on Unregistered Crypto Companies
For a long time, the regulation of the crypto sector constitutes a subject of heated debate. According to the report by Norton Rose Fulbright, the SEC will continue its “aggressive pursuit” of cases and enforcement actions related to:
- to unregistered offers,
- non-fungible tokens (NFT),
- to unregistered crypto exchanges in 2024.
The SEC has already taken legal action against several crypto companies. These include Telegram, Kik, Ripple and Coinbase, accused of violating securities rules.
The EU prepares a regulatory transformation of the crypto sector
Within the EU, the MiCA law will be gradually implemented. These regulations will introduce new requirements, including:
- the application of the “travel rule” for crypto assets,
- the regulation of various digital asset service providers.
There travel rule came into force on December 30, 2023. It requires crypto companies to provide information on the sender and recipient of a transfer of crypto-assets. The goal: to facilitate traceability and prevent money laundering.
As for digital asset service providers, they will need to obtain authorization. It will also be necessary to submit to standards of governance, transparencyconsumer protection and risk management in force.
Faced with these imminent changes, it becomes imperative for crypto players to adapt and comply with the new standards. How will this regulation influence the innovation and dynamics of the crypto market? The future will tell !
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