In the wake of crypto’s newfound popularity, traditional regulators have begun to take notice and are proactively implementing safeguards to protect investors. Meanwhile, private companies have also stepped up to protect consumers from misleading advertising.
Those who liked the “Wild West” days of crypto may balk at the new constraints, but in the big picture, this increased regulation from traditional parties can be seen largely as something positive, as it is indicative of the currencies’ staying power and path to mainstream adoption.
Here’s a quick look at what’s happened recently, and more insights into why these events predict good things for cryptocurrency.
SEC Requires Exchanges to Register
In early March 2018, the Securities and Exchange Commission (SEC) issued a statement that said all exchanges that trade digital assets which are considered securities must register with the regulator. “Many platforms refer to themselves as exchanges, which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange,” the SEC wrote, providing context surrounding the increased regulation.
Ultimately, requiring that each exchange register with the SEC provides a necessary layer of oversight that will protect investors from illegitimate platforms or scammy ICOs, which is particularly important in light of several major hacks reported over the course of the last year. While the increased regulations have likely contributed to Bitcoin’s market dip in the past month, these new initiatives are in the consumer’s best interest for the long term.
Chairman of the U.S. Commodity Futures Trading Commission CFTC Christopher Giancarlo proposed an approach to regulating cryptocurrencies that strikes a balance between providing necessary oversight while recognizing the promise and possibility of new innovations. “I believe that ‘do no harm’ is the right overarching approach for distributed ledger technology…With the proper balance of sound policy, regulatory oversight, and private sector innovation, new technologies will allow American markets to evolve in responsible ways and continue to grow our economy and increase prosperity,” Giancarlo said.
Financial Stability Board Announces No New Regulations
In March, the Financial Stability Board, a global organization that oversees international regulations for G-20 economies, announced that “crypto-assets do not pose risks to global financial stability at this time.” This announcement offered reassurance for both the crypto and non-crypto community alike at the national level, and reinstated the fact that cryptocurrencies are very much a part of the national conversation.
Social Media and Search Engines Limit Crypto Ads
In January 2018, Facebook announced it would no longer allow ads promoting cryptocurrency or ICOs. Rob Leathern, one of Facebook’s ad directors, said that the policy was intentionally broad while the Facebook team works to implement better internal processes to detect deceptive advertisements. In March, Google announced a similar ban that will go into effect in June of 2018. Ultimately, these crackdowns will also provide necessary protections for consumers navigating the space.
“We applaud the efforts being made by Google and Facebook. These consumer protection measures will weed out fly-by-night companies, illegitimate ICOs and scams. As a result, users will easily navigate through legitimate companies like BitcoinIRA.com without the noise or confusion of unscrupulous companies,” said BitcoinIRA.com Chief Operating Officer Chris Kline.
BitcoinIRA.com Hired a Compliance Officer to Streamline Regulation Processes
BitcoinIRA.com, the world’s first and largest cryptocurrency IRA company that allows customers to purchase Bitcoins and other cryptocurrencies for their retirement accounts, is committed to honoring all compliance and regulatory initiatives. In fact, the company recently appointed Maryann Bullion as its General Counsel and Senior Compliance Officer. “At BitcoinIRA.com we are very much encouraged by the regulators’ involvement setting standards for protecting consumers in the cryptocurrency space and by ensuring a safe and sound financial services industry,” Bullion said.
To learn more about how BitcoinIRA.com can help you meet your retirement goals, give one of our IRA specialists a call today at 877-936-7175.