Crypto industry became subjected to scrutiny as it stretched its wings—gained popularity and expanded in terms of adoption. Financial authorities and institutions all across the world started looking at the burgeoning asset class as a threat to the traditional finance system. Demands for banning several operations to outright ban lurks around and remains the hot topic.
With crypto becoming mainstream, many segment innovations including smart contracts, decentralized finance, non-fungible tokens and a lot more gained huge positive response and adoption. But with time they also faced the burns of scorching regulation demands. Crypto staking is one such phenomenal concept which received enough attention within the space.
Crypto staking is in mainstream discussions again as it is rumored to get extinct from the US markets. Staking which got popular following the inception of proof-of-stake (PoS) blockchain networks and received considerable thrust after Etheruem network’s transition to PoS.
Recent actions of the United States Securities and Exchange Commission against Kraken to forcefully make the crypto exchange suspend crypto staking services on its platform. On top of that, a hefty fine of 30 million USD for disgorgement, prejudgement and civil penalties, was also imposed on the company.
Did the action go unnoticed? Not exactly. It attracted a lot of attention and many people within the community called out the financial regulator and top leadership for their actions.
Blockchain Association CEO, Kristin Smith reportedly said such crucial matters to be handled by the Congress. Coinbase CEO, Brian Armstrong, also came forward and raised his voice over the matter. While sharing a blog post from crypto exchange’s legal officer, Paul Grewal, he noted that the crypto staking services of the company are not securities. In case such a thing happens, he cleared the stance adding to “defend this in court if needed.”
The SEC’s action is quite popular in recent days in the case of regulating crypto, not the only one though. Several other financial regulators across nations were also reported of taking actions.
Earlier Interpol was reported to be seeking ways for policing the criminal activities in the metaverse. Interpol Secretary General Jurgen Stock unveiled the agency’s intent in an interview. He cited the use of advanced and sophisticated methods to commit crimes.
Famous for its business friendly environment, Dubai has also reported to bring new guidelines for crypto firms. The regulator watching over crypto regulations, Virtual Asset Regulatory Authority (VARA) is also reported to bring new provisions related to virtual asset service providers (VASPs) within the emirate markets. The new guidelines will be subjected to marketing, advertising and regulations related to promotions. There is also provision of fines worth 20,000 dirhams to 200,000 dirhams, equivalent to 5,500 USD and 55,000 USD. Those who would be found repeating the similar activities will be charged 500,000 dirhams or 135,000 USD.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/02/14/from-crypto-staking-to-metaverse-crypto-regulations-heating-up/