Cryptocurrencies Get a Regulatory Boost: EU Introduces Comprehensive Framework for Crypto Assets Trading
In a move that will have far-reaching implications, the European Parliament has recently approved a comprehensive set of regulations for the cryptocurrency market. The EU countries have already given their approval, and it is expected that the rules will be implemented by mid-2024.
This move will give the European Union a strong advantage over other countries when it comes to cryptocurrency trading and regulations. It is expected that the framework created by the EU will be adopted by other developing nations, including India.
The new rules will also require asset service providers to disclose the energy consumption associated with their operations to the regulatory authorities. This is in addition to the other requirements that will be necessary for asset services to be licensed.
The risk-on sentiment for cryptocurrency has seen a significant increase in 2021. This means that investors are more willing to take on the risks associated with these assets. Bitcoin (71%), Ethereum (63%), and Binance (31%) have all experienced an uptrend in trading activity.
In India, the volume of cryptocurrency transactions has declined significantly since the highs reached in November 2021. Furthermore, the government has also included digital currency transactions under the purview of the Prevention of Money Laundering Act.
Taxation and regulatory issues are still playing an important role in the crypto space in India.