Abstract
The collapse of FTX exchanges, in November 2022 put a capstone on a terrible year of failures and lost market value in the world of digital assets. Its profound implications included not only the change of institutional investors’ attitude to crypto-assets, but also the rapid rise of global regulations on the crypto markets. This chapter focuses on the regulatory approaches from the three biggest markets: China, USA, the EU.
While China develops its own sovereign digital currency and put a full stop on the private crypto markets, in April 2023, the European Parliament gave its final blessing to the new Markets in Crypto-Assets Regulation, the world’s first comprehensive framework for crypto regulation, to both support and regulate the crypto space. The USA is accelerating its regulatory development. With global regulation rising, the crypto community must pay close attention to such developments and adapt to the “new normal.”
Notes
1.
Sinclair, Sebastian. “Celsius initiates bankruptcy proceedings to ‘stabilize’ its business,” July 13, 2022. https://blockworks.co/news/celsius-to-file-for-bankruptcy-imminently-report
2.
CGTN. “China bans financial, payment institutions from crypto business amid price volatility,” May 19, 2021. https://news.cgtn.com/news/2021-05-19/China-bans-financial-payment-institutions-from-crypto-business-10og4diN0t2/index.html
3.
PBOC. “Progress of Research & Development of E-CNY in China,” July 2021. http://www.pbc.gov.cn/en/3688110/3688172/4157443/4293696/2021071614584691871.pdf
4.
Kiderlin, Sophie. “A ‘seismic shift’ in Chinese crypto mining is underway and bitcoin could slide further as a result: Glassnode,” June 23, 2021. https://markets.businessinsider.com/currencies/news/bitcoin-mining-china-price-crypto-regulation-glassnode-2021-6-1030547552?miRedirects=1
5.
IMF blog. “Africa’s Growing Crypto Market Needs Better Regulations,” November 22, 2022. https://www.imf.org/en/Blogs/Articles/2022/11/22/africas-growing-crypto-market-needs-better-regulations
6.
Browne, Ryan. “EU lawmakers approve world’s first comprehensive framework for crypto regulation,” April 20, 2023. https://www.cnbc.com/2023/04/20/eu-lawmakers-approve-worlds-first-comprehensive-crypto-regulation.html
7.
Schickler, Jack. “EU Parliament Approves Crypto Licensing, Funds Transfer Rules,” April 20, 2023. https://www.coindesk.com/policy/2023/04/20/eu-parliament-approves-crypto-licensing-funds-transfer-rules/
8.
Parker, Emily. “Keep Crypto in America,” March 2, 2023. https://www.coindesk.com/consensus-magazine/2023/03/02/lack-of-regulatory-clarity-puts-crypto-in-the-united-states-at-risk/
9.
Andersen, Derek. March 15, 2023, Cointelegraph report, “Gensler suggests staking token operators should ‘seek to come into compliance,’” https://cointelegraph.com/news/gensler-suggests-staking-token-operators-should-seek-to-come-into-compliance
10.
CFTC release. “CFTC Charges Sam Bankman-Fried, FTX Trading and Alameda with Fraud and Material Misrepresentations,” December 13, 2022. https://www.cftc.gov/PressRoom/PressReleases/8638-22
11.
SEC. “SEC Charges Ripple and Two Executives with Conducting $1.3 Billion Unregistered Securities Offering,” December 22, 2020. https://www.sec.gov/news/press-release/2020-338
12.
Forkast. “Ripple expects SEC ruling in first half, clearer global regulations for digital assets in 2023,” January 4, 2023. https://forkast.news/ripple-expects-sec-ruling-in-first-half/
13.
SEC. “Kraken to Discontinue Unregistered Offer and Sale of Crypto Asset Staking-As-A-Service Program and Pay $30 Million to Settle SEC Charges,” February 9, 2023. https://www.sec.gov/news/press-release/2023-25
14.
Coinbase blog. “We asked the SEC for reasonable crypto rules for Americans. We got legal threats instead,” March 22, 2023. https://www.coinbase.com/blog/we-asked-the-sec-for-reasonable-crypto-rules-for-americans-we-got-legal
15.
De, Nikhilesh. “Crypto Exchange Bittrex Violated Federal Laws, SEC Charges in Lawsuit,” Apr 17, 2023. https://www-coindesk-com.cdn.ampproject.org/c/s/www.coindesk.com/policy/2023/04/17/crypto-exchange-bittrex-violated-federal-laws-sec-charges-in-lawsuit/?outputType=amp
16.
Lian, Anndy. “SEC chair Gensler confirms ‘everything other than Bitcoin’ is a security: Implications and analysis,” February 28, 2023 https://cryptoslate.com/sec-chair-gensler-confirms-everything-other-than-bitcoin-is-a-security-implications-and-analysis/
17.
De, Nikhilesh. “Presidential Advisory Group Promises Stablecoin Recommendations,” July 19, 2021. https://www.coindesk.com/markets/2021/07/19/presidential-advisory-group-promises-stablecoin-recommendations/
18.
SEC. “Remarks Before the Aspen Security Forum by Chair Gary Gensler,” August 3, 2021. https://www.sec.gov/news/speech/gensler-aspen-security-forum-2021-08-03
19.
The White House. “The Administration’s Roadmap to Mitigate Cryptocurrencies’ Risks,” January 27, 2023. https://www.whitehouse.gov/nec/briefing-room/2023/01/27/the-administrations-roadmap-to-mitigate-cryptocurrencies-risks/
Editor information
Editors and Affiliations
Source: https://link.springer.com/chapter/10.1007/978-3-031-39288-7_11
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.