Gary Gensler: Crypto Platforms Need Regulations to Survive

SEC Chairman Gary Gensler recently spoke on the ever-changing topic of cryptocurrencies, saying that crypto platforms need regulation if they are to last.

head of the US Securities and Exchange Commission said he was disappointed with the reaction to his cryptocurrency proposals. Gensler cautions that cryptocurrency exchanges put their own survival at risk if they don’t operate within regulations.

Gensler told the Financial Times that it was “technologically neutral.” He said that crypto assets are not special in terms of public policies to invest in protection and prevent illicit activities. “With a value of around 2 trillion dollars worldwide, it is at the level and the nature that if it has any relevance in five to ten years, it will be within a public policy framework,” he said.

president said that finances are ultimately a matter of trust. Thus, he revealed his disappointment with the cryptocurrency industry’s reaction to his SEC registration proposal. He suggested that compliance and communication are better than “asking for forgiveness.”

“Talk to us, come in,” he said. “re are a lot of platforms out there today that you better get involved with.”

Earlier this month, Gensler made it clear that DeFi projects are not exempt from regulations. Decentralized financial platforms pose a challenge due to the lack of a traditional broker. However, Gensler said it still has “quite a bit of centralization.”

Read Also DeFi Total Frozen Value Reaches $ 200 Billion Milestone

Cryptocurrency regulations are piling up

In early August, the Senate unveiled a bill with the potential to disrupt the cryptocurrency industry. He opened up the definition of a broker, which then included almost every player in the industry. It has expanded reporting requirements so much that a cup of coffee bought with bitcoin could require a tax return.

For legislators, this is an income opportunity to finance such high bills. However, for the cryptocurrency industry in general, this is not a welcome development. Many say this is a crucial time for the industry and for further innovation. However, regulators have promised some form of tax on cryptocurrencies by the end of September.

Additionally, the United States Treasury said earlier this week that it encourages global data sharing for cryptocurrency companies. This is in an effort to keep a closer eye on US taxpayers who evade the system through foreign accounts.

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