Singapore – Recently, many reports confirmed the US proposed regulation, which could change the stable coin ecosystem at a fundamental level worldwide. It is worth taking what exactly the proposed legislation includes since it will ripple some effects on Asia’s cryptocurrency market.
As 2020 concludes, the proposed legislation has been released and could alter and curtail cryptocurrencies’ rapid growth. Although the legislation will run in the United States, many crypto critics are confident that Asia countries, link Japan, Singapore, and Hong Kong, will experience some ripple effects.
The proposed cryptocurrency legislation was named STABLE Act, which has been written to prevent abuse and the potential rise of crypto-asset shadow-banking system. Many critics stated that this legislation is worthy but still generated protests from the blockchain and crypto community immediately.
According to the proposed Act itself, the stable coin issuers will need to abide to avoid violating the laws. Firstly, the stable coin issuer should obtain a federal banking charter and comply with state regulations and money transmitter laws. They also need to obtain the Federal Deposit Insurance Corporation (FDIC) or Federal Reserve.
Many financial intelligence units, financial regulators, and cryptocurrency exchanges express their concerns regarding hackers committing cybercrimes using digital assets.
Almost 70% said that criminal activities are the top-most concerns for professionals in the global financial and cryptocurrency industries. The US government continuously works to curb money laundering by requiring cryptocurrency exchanges to follow the protocols.
By placing stricter limits on cryptocurrencies and crypto exchanges, the regulators can bring better framework and data supervision directly into the coins themselves. Currently, the proposed cryptocurrency legislation is still pending.
Some argue that having this Act can result in a negative trend. However, many people still stated that legislations are never perfect at first. Writing and improving the proposed cryptocurrency legislation is essential to shape up a better cryptocurrency community.