Last year has been a year of negative criticism and scandalous topics that has made the virtual asset industry attract attention from many federal agencies worldwide. Events include the collapse of major exchanges like FTX, the inside exchange scandals by Coinbase, and the forty-billion-dollar collapse of Terra/Luna, among others.
All these scandalous events make it hard and challenging for the virtual asset industry to penetrate the broader financial market. A global report indicates the growing acceptance that this Blockchain technology poses extraordinary difficulties for financial regulators, capital markets, tax authorities, and investors universally.
Regarding the growing risks customers and investors face, securities agencies have been increasing the pressure on regulations and guidelines to govern the crypto industry.
Moreover, securities regulators announced that tighter regulations are just around the corner. For visual asset consumers, it has become challenging to understand what guidelines and governance may seem like and how to go about a more governed crypto atmosphere.
Navigating the Crypto Guidelines
Joseph Dallago, the chief executive officer and co-founder of Rain Financial, which operates the Rain virtual asset exchange authorized by the Central Bank of Bahrain, announced that regulating crypto is a matter of when; the earlier the consumers and service providers accept it, the better.
Several malicious activities in the crypto atmosphere in the previous year could have been prevented if there had been clear and streamlined guidelines for virtual asset service providers in uncontrolled markets.
After a year of virtual asset enterprise downfalls, advanced levels of fraud, conspiracy and money laundry, and conviction of wrongdoers, there is no point in arguing that greater investigation will assist in safeguarding the interests of the investors.
Greater virtual asset guidelines will not prevent capitalization in these areas but instead support the sector as these are governing methods to secure investor interest and safeguard their assets.
Moreover, guidelines would offer long-term sustainable financial and economic push to those nations that supported and adopted it as virtual assets are considered the future of economies. However, Securities regulators have cautioned about the growing market volatility as new regulations are yet to be launched.
Investors and consumers should also anticipate a large-scale industry combination when virtual asset guidelines become a reality. Therefore, the most preferred bets are virtual assets with a strong developer team, security protection, and systems.
Does Crypto Require Governance?
According to Joseph Dallago, the chief executive officer and co-founder of Rain Financial, Virtual asset analysts believe that crypto is the future of finance. Thus, the crypto space must be governed in the same method as the outdated financial structure.
Regulation of virtual assets can play a major role in securing investors’ securities, safeguarding customer interest, and reducing fraud and money laundering cases.
Chief executive officer and founder of deVere Group, Nigel Green, announced that the decisions by administrations worldwide to regulate virtual assets must be implemented. He added that virtual digital assets should be treated with the same standards as the rest of other financial securities.
So far, crypto has come a long way. There is no greater evidence of its mainstreaming than the reports that virtual assets are being brought into the regulatory houses in one of the leading financial economies and advancing regulated markets.
Since virtual assets are said to have greater impacts on the economies of nations across the globe, strong regulations and streamlined governance are advisable to protect consumer’s interests, added Mr. Green giving examples of the United Kingdom’s latest decision to regulate these assets.