2022 will be an exciting year for Bitcoin and the crypto space. No less important from a political point of view. Three possible regulatory developments in the regulatory ECHO.
The semaphore and bitcoin
Last year, 2021 brought Germany, not least, a new federal government. What innovations does the traffic light coalition have in store for the national crypto space? In the coalition agreement, the three partners announced clearer rules for the future in the fight against money laundering and terrorist financing. These should also explicitly apply to cryptocurrencies. The announcement that Germany will become “one of the leading locations” for FinTech of all kinds in the coming years sounds good, too. To this end, bureaucratic obstacles in particular will be removed. The coalition agreement also speaks volumes about blockchain technology and its applicability to traditional financial services. However, the question arises as to whether Germany will receive clearer encryption rules in 2022. Here, the semaphore partners are relying on a European solution. So if the government in the federal government can have the will to shape things and a certain affinity for cryptocurrencies, in the coming year it will ultimately be up to Brussels whether the German cryptocurrency market receives a clear regulatory framework.
United States targets stablecoins
Financial institutions and policy makers in the US have been engrossed in a discussion about stablecoins for some time. Because there is great concern that tokens pegged to fiat currencies are not as secure as publishers claim. A sudden rush in stablecoins could also have devastating consequences for traditional finance. To protect financial stability from a sudden drop in the value of stablecoins, many in the US want to significantly tighten their oversight of such crypto currencies.
In the last few weeks alone, there have been several hearings on the issue in the United States Congress. The industry had its own opinion on one. In the debate, Democrats in particular continue to consider restricting stablecoin emission rights to companies with banking licenses in the future. Even if there are still significant disagreements on this point, a significant increase in compliance standards for stablecoins and their issuing companies in the US can be expected in 2022.
Is crypto exchange Binance finding a new home?
2021 was not a good year for Binance. The crypto exchange came under significant pressure from authorities in several countries. In many places it had to reduce its product range almost entirely. In Germany, Binance also does not offer Bitcoin futures or comparable derivatives. While in the UK, USA and Canada Newly founded subsidiaries should help to appease the respective market watchdogs; The Singapore Stock Exchange is likely to close its doors. The question of which country Binance’s parent company is located in also remains open. Will the Bitcoin exchange open a new headquarters in Bahrain next year?