New year, new rules? This is what the crypto space expects – regulatory overview
2 min read
2022 will be an exciting year for BTC and the crypto space. Not least from a political point of view. Three possible regulatory developments in the regulatory overview.
The traffic light and BTC
Last year 2021 brought Germany not least a new federal government. What innovations does the traffic light coalition have in store for the domestic crypto space? In the coalition agreement, the three partner parties announced clearer rules for the future in the fight against money laundering and terrorist financing. These should explicitly also apply to crypto currencies. The announcement that Germany is to become “one of the leading locations” for FinTechs of all kinds in the next few years also sounds good. For this purpose, bureaucratic hurdles in particular are to be removed. The coalition agreement also talks a lot about blockchain technology and its applicability to traditional financial services. Nevertheless, the question arises as to whether Germany will receive clearer crypto rules in 2022. Here the traffic light partners rely on a European solution. So if the government in the federal government may have the will to shape things and a certain affinity for crypto, in the coming year it will ultimately be up to Brussels whether the German crypto market receives a clear regulatory framework.
USA are targeting stablecoins
Financial institutions and policymakers in the US have been engrossed in a discussion about stablecoins for some time. Because there is great concern that the tokens linked to fiat currencies are not as secured as the publishers claim. A sudden run on stablecoins could also have devastating consequences for traditional finance. In order to protect financial stability from a sudden drop in the value of stablecoins, many in the USA want to significantly tighten the supervision of such crypto currencies.
In the past few weeks alone, there have been several hearings on the subject in the US Congress. The industry had its own take on one. In the debate, the Democrats in particular continue to consider restricting the issuing rights for stablecoins to companies with banking licenses in the future. Even if there are still major disagreements on this point, a significant increase in compliance standards for stablecoins and their issuing companies can be expected in the USA in 2022.
Is the Binance crypto exchange finding a new home?
2021 was not a good year for the company Binance. The crypto exchange came under significant pressure from the authorities in several countries. In many places it had to shrink its range of products almost completely. In Germany offers Binance no more BTC futures and comparable derivatives. While in the UK, the US and Canada newly founded subsidiaries should contribute to appeasing the respective market watchdogs, the Singapore stock exchange will probably close its doors. The question of which country the Binance parent company is based in also remains open. Is the BTC exchange opening a new headquarters in Bahrain in the coming year?
