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Tuesday, May 28, 2024

2023-2024 Crypto Market What Will Change?

As a law student at the time, I became interested in the issue of cryptocurrencies and their growth in 2016. The technology and aims were outstanding! I began reading more scientific articles about bitcoin wallets and crypto in general, which were few and primarily American-made at the time. Cryptocurrency legislation in the United States, Switzerland, and Singapore has made them industry leaders. However, it was generally the Wild West market in those times of great uncertainty.

Now, I am the head of the multinational legal company SBSB Fintech Lawyers’ Fintech section. I can state from personal experience that the “Wild West” era is ended. Regulators throughout the world have understood that if this market is allowed uncontrolled, it would eventually endanger their financial system. And some authorities saw an opportunity to benefit from their restrictions. Based on my expertise, I’d like to make four predictions for 2023-2024.

To begin, global regulation of cryptocurrency enterprises is being tightened. This trend, I believe, will continue with enhanced vigor throughout 2023-2024. There are specific requirements. Europe, for example, will enforce the MiCA – Markets in Crypto-Assets regulation memo.

Regulation of Crypto-Asset Markets focuses on various kinds of crypto-assets that are now beyond the reach of existing legislation. Furthermore, it offers a consistent strategy to regulating all cryptocurrency ventures in the EU territory. Furthermore, new rules are expected from places such as Hong Kong, Panama, Seychelles, and others, where crypto ventures have hitherto avoided regulation. The widespread adoption of CBDC by numerous nations would help hasten this process.

Second, in 2023-2024, there will be a lot more crypto lawsuits. Law enforcement authorities’ operations will be visible. The newest example is Tornado Cash, where the regions of responsibility are dramatically increasing. Tornado Cash was a decentralized cryptocurrency mixer with no obvious winner. The firm is accused of being a cryptocurrency mixing service designed to launder stolen assets associated with major cyberattacks. According to OFAC’s most current virtual currency guidelines, each business type and anybody else who interacts with the crypto industry “is urged to establish, execute, and frequently update a customised, risk-based sanctions compliance program.”

In general, such compliance processes should contain a sanctions list, geographic screening, and other relevant measures based on the company’s particular risk profile.” Tornado Cash broke one of the rules of a decentralized project. So it is expected that in 2023-2024, law enforcement authorities will be able to prosecute even for building software if there is any indication that the objective of this program is to break rules. This serves as a warning to numerous decentralized platforms that still adhere to anonymity requirements.

Third, the years 2023-2024 are dedicated to the struggle against anonymity. It will accelerate once CBDC is fully implemented. Unfortunately, everything boils down to the notion that anonymity Means criminality. Over time, I believe this will be established as a legal philosophy.

Fourth, the technological progress of the DEFI and NFT markets, as well as the deployment of new AML / KYC and cyber security solutions, give us cause to believe that we are on the verge of a new age of crypto ventures. We will most certainly witness an even more ideal DEFI market, upgraded DEXs, and NFT markets in 2023-2024. The most critical aspect, however, is to create a strong relationship with the financial industry. We shall see the emergence of new, progressive, technologically sophisticated centralized exchanges known as crypto banks. Traditional Fintech projects that do not include cryptocurrencies on their platform will fail to compete.

As a result, more mergers and acquisitions in traditional Fintech and crypto company industries are predicted in 2023-2024. The crypto industry’s titans may possibly become the crypto-banking industry’s titans, expanding their market hundreds of times.

To summarize, the trend will look like this. The purpose of the regulator will be to crush or direct the market. The goal of the major companies in the crypto market is to stay on top and adapt to the new regulatory regulations with the greatest profit to themselves. The goal of innovation and start-up ventures will be to develop solutions to society’s need for privacy and anonymity.

Ahsan Khan
Ahsan Khan
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