“Although the regulatory deadlines are not set in all cases, the course is clear. Companies that work with digital assets must be prepared for stricter regulations than the current ones,” said Juan Manuel Magadán, a partner at PwC Argentina in the practice of tax and legal advice.
He also added that although this change will not happen in the short term, “The bar is being raised to equate the obligations of digital asset companies with those of traditional financial services.”
In this context, the regulation of these assets increased due to the growth of retail sales and institutional approval, so that this situation “led to a rapid increase in market capitalization” and “extreme volatility among traders”the document indicated.
Furthermore, the loss of confidence experienced by consumers, following a series of cryptocurrency failures and mismanagement of client funds, highlight the need for strong, globally established regulatory policy and oversight.
“The risk involved in maintaining the integrity of the market -added the work- demonstrates the need to apply a regulatory policy that is global and fast approach and a supervision framework to guarantee greater consumer protection”.
Which are the countries with the most regulation?
In this sense, the European Union is in an advanced stage of regulation of this marketlike United Arab Emirates and Dubai which is establishing the first authority focused on virtual assets. For his part, Swiss has one of the most mature regulatory frameworks that allows market participants to obtain certainty about the legal and regulatory treatment of their planned projects and activities.
Finally, the report suggested indications to take into account within the crypto-assets industry, such as the mutual relationship that the digital asset ecosystem will have with traditional financial institutions -as the use of technology grows-, and the adoption of approaches to corporate governance, compliance and risk management by native organizations.
Source: Ambito
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