The day 9 March 2022 has been remarkable for crypto regulations.
US President Joe Biden signed the much-awaited executive order on cryptocurrencies on this day. On the other side of the globe, the Emirate of Dubai too adopted a crypto law creating an independent regulating authority.
Breaking Down Biden’s Crypto Edict
Roughly 40 million Americans—16% of the adult population in the US—have invested in, traded, or used cryptocurrencies, according to the Fact Sheet released by the White House.
Against this background, Wednesday’s executive order pushes for a “government-wide” approach to regulate the growing digital asset sector in the country with a focus on six key areas:
- Consumer and investor protection;
- Financial stability;
- Illicit activity;
- US’s leadership in the global financial sector;
- Financial inclusion; and
- Responsible innovation.
The order aims to support innovation and maintain technological leadership in the crypto space while mitigating risks for consumers, businesses, and the broader financial system.
Three Key Takeaways
The key provisions of the executive order, which has been in the making since October 2021, are:
- Unified approach: It directs federal agencies to coordinate efforts to draft cryptocurrency regulations.
- Rethinking money: It directs the Treasury Department to create a report on the “future of money and payment systems”. The inter-agency report is resolved to study the impact of cryptocurrencies on economic growth, financial inclusion, and national security, while also looking into the inadequacies of the current financial system.
- Digital dollar: The order also places urgency on the research and development of a Central Bank Digital Currency (CBDC), should issuance be deemed to be in the national interest.
However, in bringing out such an order, the US administration has been careful not to mention the specific position agencies should take in formulating crypto regulations. It also did not announce any new regulations for the crypto industry.
Dubai’s New Virtual Assets Law
In a bid to become the world’s crypto capital, Dubai has taken a step further into regulating cryptocurrencies.
On Wednesday, the Ruler of Dubai Emirate, Sheikh Mohammed bin Rashid Al Maktoum, announced the passing of the Virtual Assets Law on Twitter. The law establishes a Virtual Assets Regulatory Authority (VARA) tasked with overseeing regulations, licensing, and the governing of exchanges, custodians, and asset managers in the crypto space.
The goal of VARA is to create a business environment suitable for the growth of virtual assets and tokens while mitigating risks for investors.
“The future belongs to whoever designs it. Today, through the virtual assets law, we seek to participate in the design of this new and rapidly growing global sector,” Sheikh Mohammed bin Rashid tweeted.
This is truly a watershed moment in the history of crypto with governments racing towards positive regulations.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
Table of content
Subscribe to Our Newsletter with exclusive content.