Key Legal Challenges in Cryptocurrency and Blockchain
Examines the evolving regulatory landscape for cryptocurrency and blockchain technologies.
Cryptocurrency and blockchain technology have revolutionised finance, but they also present unique legal challenges. This article provides an overview of these challenges, beginning with the classification of digital assets—is it a currency, commodity, or security? Each classification has different regulatory implications. For instance, digital assets considered securities fall under SEC regulation, while commodities may be overseen by the Commodity Futures Trading Commission (CFTC).
Furthermore, the article discusses issues related to decentralized finance (DeFi) platforms, where peer-to-peer transactions occur without intermediaries. It addresses the difficulty of enforcing KYC and AML regulations on these platforms, as well as the risks of money laundering and fraud.
Finally, the article considers the potential for regulatory frameworks that can address these challenges, including recent proposals by global organizations for unified standards to protect investors and maintain market integrity.
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