Crypto has had to endure so many hurdles up until now as the world was waiting for the US for guidance and direction. That is not happening so it is refreshing to see decisions being made including countries asking for crypto projects to help assist with guidance for regulation (UK).
It seems like every day we are getting crypto regulation news from various countries around the world with some being more common sense. I just wish the United States would get it's act together before it is too late. Regulation should be designed to protect the investor and nothing else as long as it is within the financial laws.
A prime example came out of South Korea today, the land of Terra Luna announcing a proposed regulation which passed the first phase that makes so much sense with very severe penalties for anyone breaching them.
An exchange or service provider has to have it's own holdings and reserves with user assets kept totally separate as they don't belong to the exchange. If anyone is found guilty of wrong doing they have to pay back up to 3 x the amount plus up to 12 months in prison. If the figure is more than $3.75 million then they could face up to life in prison. A welcome deterrent as crypto does need harsh penalties in place for the bad actors. Do Kwon would not have done what he did as with him the law would just throw away the key. FTX would have acted differently and investors funds would have been safe just by applying this law.
The exchanges wouldn't have been able to use the funds the way they did in the Steem take over as those would have had to have been kept separate. This is just basic common sense and we need more of this in crypto as there is too much shady stuff happening. Mass adoption will only take place once we have proper regulation and this will benefit us all as the values of our portfolio will start to rise.
Rug pulls have been all too common over the last few years and there are still some Ponzi schemes around like HEX and BITGERT which should have been shut down long ago. When a crypto does not have a genuine use case the regulation should ensure it is classified as something else at least so everyone knows the risks involved with that project. Crypto should be policing itself instead of trying to dump coins on the next sucker whilst taking profit.
Certain countries are moving forward with regulation and thank goodness they are not waiting on the US which is what it looked like was happening. It is clear there are games being played by the US as there are other agendas at play with whoever is paying them to act in this way. This is not normal behavior as what they are doing is clearly a delaying tactic which makes no sense as the rest of the world is not waiting for them. I think arrogance has played a part as this clearly was not part of their grand plan.