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Regulators are coming for crypto: Is digital identity the answer?

Published 10/10/2021, 04:43 PM
Updated 10/11/2021, 06:20 PM
© Reuters.

The regulators are closing in. It’s one thing to unbundle market functions to their parts ― custody, aggregators and Prime Brokerage ― to satisfy institutional compliance departments. It’s another to keep regulators happy.

From the Financial Action Task Force pushing forward with its guidance for Travel Rule compliance to the still-evolving European Markets in Crypto-Assets regulatory framework, and the somewhat clumsily-handed U.S. infrastructure bill, the regulators are slowly tightening their noose, and I fear this may be the start of a multi-year staring match ― with the decentralized finance (DeFi) market now firmly in their sights, too.

Paul Gordon is the founder of Coinscrum, one of the world’s first Bitcoin Meetup groups in 2012, with over 250 events organized and over 6,500 members. Paul has been a derivatives trader/broker for over 20 years.

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Troops, swine and teachers need to steal your money $$$
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