Asian Countries Crowded Make Clarification of Crypto Rules

Liputan6.com, Jakarta The US securities regulator acted very strictly on crypto exchange companies, in the first half of this year. Such as imposing fines on cryptocurrency exchanges, warns of legal action.

In the second half of this year, a number of Asian jurisdictions implemented new rules regarding crypto exchanges even without lawsuits. Several Asian countries, such as Singapore and Thailand, appear to be following the US Securities and Exchange Commission (SEC) in opposing certain products being offered. by the stock exchange.

The approach in Asia so far seems clearer than in court battles, in contrast with North America. The US is in a state of political and regulatory war over how to manage the cryptocurrency industry.

John Rizzo, Senior Vice President of Public Affairs at the Washington-based public relations firm Clyde Group, offers this view. “Congress appears to be making headway on the regulatory framework for stablecoins and crypto market structure, but the SEC appears determined to ban crypto,” said Rizzo, a former digital asset spokesperson at the US Department of the Treasury. Yahoo Finance.

According to Zennon Kapron, founder of Asia-based fintech consultancy Kapronasia, crypto “has always faltered in the US” because the rules have never been clear. “For this reason, many companies have focused on foreign markets from the start,” said Kapron in an email interview.

Nick Ruck, head of operations at blockchain infrastructure platform ContentFi Labs, agrees with that view. “The biggest problem with the crypto industry in the US comes from regulators trying to implement a century-old framework for new innovations in financial technology,” said Ruck.

Countries in Asia attract crypto companies by clarifying rules and adapting to innovation. South Korea seems to be one of them. The country’s National Assembly on the last day of June approved a bill focused on protecting the interests of cryptocurrency investors.

Singapore and Thailand are following rules that include banning crypto staking services, although Singaporean authorities add that the product is still being studied.

Not to forget Hong Kong – once home to the now bankrupt FTX exchange which is an example of all that is wrong with cryptocurrency trading platforms.

Hong Kong introduced stricter crypto trading regulations on June 1 and is one of the jurisdictions in Asia running for the title of leading digital asset hub, with all the potential investment, jobs, and financial technology advantages that this can bring.

While the new crypto rules in Asia are tougher filled with penalties for violating them, and will require restructuring by some crypto businesses, Lasanka Perera, Chief Executive of Crypto Exchange Independent Reserve Singapore, said the new rules of the road are welcome.

“This not only underlines the confidence of regulators to protect investors but will undoubtedly inspire even greater confidence from the corporate and institutional sectors,” said Perera.

Meanwhile, South Korea’s Virtual Asset User Protection Act will not apply as law for one year. This is the country’s first step toward establishing a digital asset legal framework, according to the Assembly’s official website.