Crypto regulations with examplifications

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Assalamualaikum steemians

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How are you? Hope so everyone would be safe and sound just like me as I am also safe Alhamdulillah...

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This is today I am going to share about crypto regulations so there are different points that we can consider under the heading of crypto regulations.

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Crypto regulations are defined as some of the rules and regulations and some of the laws or some particular guidelines that are responsible for governing the use of cryptocurrency blocking technology and other businesses that are related to it.

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With the passage of time when cryptocurrency grows and evolve then government and different regulatory bodies establishes their refined rules and regulations for ensuring the protection of investors ,for preventing any kind of illicit activities and for the promotion of their innovation.

Here I am presenting myself with some of the practical examples

1. Anti-Money Laundering and Know-Your-Customer regulations We all know about anti-money laundering and KYC so they have requirement from crypto exchanges and businesses to show their contribution in verifying the identities of users and to monitor the transactions for preventing money laundering and ant kind of illicit financing.

You can take following example to understand it more clearly

Coinbase is one of most significant and leading crypto exchange which have an implementation of AML/KYC regulations and for this it require from its users to give proof of their addresses and identifications.

2. Securities and Exchange Commission (SEC) regulationsSEC regulations in the United States has classified some of the cryptocurrencies as security and safety so in this way it is subjecting them to existing laws of securities and some requirements of registration.

As an example you can again take guidance from below words

SEC has taken some significant steps which are against initial coin offerings (ICOs) because they have shown their faliure in registering as securities like we all know about the case which was against Telegram $1.7 billion ICO.

3. Financial Action Task Force recommendationsFATF have provided global or worldwide standards so that it may show it's combating with money laundering and and any kind of illicit for so it also includes some significant guidelines for businesses related to cryptocurrencies.

As an example you can understand the following example

There is Japan Financial Services Agency which have its requirements of crypto exchanges in implementation of recommendations provided by FATF so it includes to monitor and report transactions that are suspicious.

4. Data privacy regulationsData privacy regulations like General Data Protection Regulation (GDPR) in the Europe implemented at crypto businesses which is responsible for handling their personal data.

As an example you can understand the example below

About ledger we all know that its a crypto hardware wallet provider which habe it's compliance with GDPR by implementation of protection of data measures and also it I obtains user consent or permission.

5. Tax regulations changes by country, but there are multiple governments that are requiring crypto businesses and individuals for reporting and paying of taxes at crypto-related income.

As a strong concept we can understand below example

The Internal Revenue Service are in S which requires crypto exchanges for reporting transactions of users and income as well as individuals should also report capital gains on their investments related to cryptocurrency.

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6. Licensing and registration requirementsThese are used for crypto businesses but it varies from country to country, but there are many jurisdictions which are requiring businesses to obtaining licenses or to register with regulatory bodies.

As an example you can understand this concept

In New York State Department of Financial Services issueed some licenses to crypto businesses working in a state so it was requiring from them to meet some particular regulatory standards.

At last I just want to say that there are many points I have discussed about crypto regulations along with some examples that was practical too.Now hopefully by relating crypto regulations with real world and practical examples this topic is clear for all of you.

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Thanks

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