The post With Another Crypto Exchange Charged By Regulators, Where Does That Leave Web3? appeared on BitcoinEthereumNews.com.

The hits just keep coming regarding US regulators vs. crypto exchanges.  The latest charges were levelled at Kraken, the world’s third-largest cryptocurrency exchange.  The US Securities and Exchange Commission (SEC), filing charges against Kraken, stated that the platform was not properly registered in its services as an exchange, broker, clearing agency, and dealer.  While Kraken has issued a strong statement saying they do not have to register based on the services they provide, this will undoubtedly cause them a headache even in the best of circumstances. The current world of crypto regulation, especially in the US but globally as well, has created a frustrating situation for the Web3 industry.  Many excellent companies with innovative ideas are working to create value for their communities.  While a strong, fair set of regulations is desired by crypto firms and regulators alike, the speed at which these regulatory bodies works is alarmingly slow.  This creates a vast gulf between the lightning speeds of industry innovation vs. the crawling progress toward usable regulation.  It’s like the tortoise and the hare, except the hare crossed the finish line long ago and now has to wait for the tortoise to catch up. This raises a very important question:  what are Web3 firms to do knowing they could, months or even years from now, face charges from regulators?  Even if they are doing their best to follow what outdated regulations there are, they will face risks until regulations stabilize.  But is this the case for all Web3 or just certain sub-industries?  And how does this risk differ in the US vs. the global market?  Let’s dive in and investigate. When Will Regulation Stabilize? It’s important to remember both recent history and context when looking at current regulations.  While it seems that very little has happened to address the…

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Filed under: News - @ November 28, 2023 9:22 am