Surfin' Bitcoin: Crypto and Regulation

As expected, the issue of cryptocurrency regulation was on the agenda during the third edition of Surfin’ Bitcoin. Exclusively, gives you what experts in the field think.

Cryptocurrencies and money laundering

Critics generally describe cryptocurrencies as a way to facilitate money laundering. However, according to Stéphanie Cabossioras, legal director France at Binance, the PSAN approval commits the exchanges to a certain number of responsibilities. These include: supporting law enforcement to apprehend criminals, identifying all platform users, as well as detecting transactions considered suspicious. Simply put, the company is required to inform the police as part of the fight against money laundering.

For her part, Elodie Trevillot, head of the regulation, compliance and permanent control department of DELUBAC & CIE, underlines that the situation is the same for exchanges as for banks. That said, the blockchain turns out to be a powerful tool when it comes to traceability. Which is far from being the case today with fiduciary money. In this sense, flow analysis mechanisms are developed to track the history of financial transactions. This still raises the question of respect for privacy, which is at the heart of the Bitcoin philosophy.

MiCA regulation: What impact for holders of cryptoassets?

Today, many experts agree that cryptocurrency regulation is a necessity. William O’Rorke, founder of ORWL Avocats, believes regulators have taken a big step towards the industry. This has significantly affected its development. In addition, the forthcoming MiCA regulations will help to move things forward even further.

Indeed, it offers a secure framework for investors, especially since it is developed under the supervision of the Autorité des marchés financiers (AMF). It should be noted that the MiCA standard constitutes a base of guarantees comparable to that of traditional financial products. A more than interesting solution from the point of view of Binance, the world leader in cryptocurrency exchanges. However, it will take two years for this regulatory mechanism to come into force.

Moreover, contrary to what one might think, the PSAN approval does not provide any guarantee on investments in cryptocurrencies. That said, it could easily become a real hallmark for crypto businesses in Europe.

Freedom or security? Which card to play?

At the end of this exchange, the difficulty is to find a compromise between regulation and ethical considerations around privacy and decentralization. That said, thinking about how to regulate decentralized finance in the long term is also ongoing. And she promises to be tough. For the authorities, the regulation of cryptocurrencies is an emergency situation. It stole the show from the regulation of cross-border transfers. And that’s just the beginning.

Today, the irony is that blockchain companies are forced to participate in the establishment of the regulatory framework applicable to decentralization. However, it is hard to deny the relevance of this move for crypto investors. As William O’Rorke says, “Regulations are a bit like a board game and the goal for everyone is to try to play without going to prison! »

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