Crypto Regulations on the Horizon: What You Need to Know

Bullet Points:

• The U.S. Senate recently introduced the Digital Asset Anti-Money Laundering Act of 2022, which includes KYC laws and money-transmitter licensing requirements.
• The European Central Bank recently revealed that Bitcoin is on an “artificially induced last gasp before the road to irrelevance” and is considering a Bitcoin and crypto ban to mitigate environmental damage.
• The Debt Spiral…Sparked by the Senate Banking Committee hearing, this is just the beginning of the fight stage and the potential implementation of regulations which could impede widespread adoption.

The U.S. Senate recently introduced the Digital Asset Anti-Money Laundering Act of 2022, which contains various threatening aspects such as Know Your Customer (KYC) laws for self-custody wallets and money-transmitter licensing requirements. This is coming on the heels of the European Central Bank’s recent announcement that Bitcoin is on an “artificially induced last gasp before the road to irrelevance.” This revelation was followed by the official from the bank indicating that it is considering a Bitcoin and crypto ban in order to mitigate environmental damage.

The energy crisis in Europe has become increasingly worse, with Germany’s rising use of coal power and other countries in the region struggling with similar issues. While politicians and officials are starting to understand Bitcoin and how it tips the scales of power, it is unlikely that they will take action due to larger issues. This is why the Debt Spiral sparked by the recent Senate Banking Committee hearing is just the beginning of the fight stage, and the potential implementation of regulations which could impede widespread adoption.

The possibility of a Bitcoin and crypto ban could be immensely damaging, as it could prevent users from accessing the currency and trading it. Furthermore, the money-transmitter licensing requirements could make it much more difficult for people to access their funds. Ultimately, this would create an environment that is unfriendly to cryptocurrencies, stifling the growth of the industry.

It is therefore important for people to stay vigilant and keep an ear to the ground for any developments. This is especially important for citizens to take action, as calls to governmentally elected representatives could influence such situations, as was seen in the infrastructure bill of 2021. While the ban and much of the regulations would be impossible to enforce, they would still serve as a significant speed bump to widespread adoption. Therefore, it is paramount for citizens to make their voices heard and ensure that any regulations proposed are implemented with the best interests of the public in mind.