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- Veriscope Regulatory Recap – 1st May to 15th May 2024
Veriscope Regulatory Recap – 1st May to 15th May 2024
Shyft Network
May 15, 2024
Welcome to another edition of the Veriscope Regulatory Recap. Here, we will analyze the latest developments in the US and Nigerian cryptocurrency regulations scene and what these changes mean for the users.
US Inches Closer to Clearer Crypto Rules
The US is all set to take a significant step with the FIT21 Act, which is headed for a House vote soon. This act aims to clear up the murky waters of crypto regulation in the US by defining what counts as a commodity and what counts as a security.
Why is this a big deal?
Specifically, the bill gives the CFTC more control over digital commodities—a move welcomed by many in the industry who see the CFTC as more friendly to the crypto landscape compared to the SEC.
The SEC has taken a more aggressive stance, evident in its numerous lawsuits against major players like Coinbase and Ripple Labs.
This clearer division of oversight could help companies navigate the market more confidently, knowing which regulatory body they will primarily interact with.
The takeaway: If the proposed bill passes, we may see a boost in crypto investments in the US as the market becomes well-regulated, as Sen. Hill noted in the Friday press release:
“As the collapse of FTX demonstrated, we need strong consumer protections and a functional regulatory framework to ensure the rapidly growing digital asset ecosystem is safe for investors and consumers while securing America as a leader in blockchain innovation.”
Nigeria to Ban Peer-to-Peer Crypto Trading
Switching gears to Nigeria, the country's government is proposing a ban on peer-to-peer crypto trading to stabilize its currency, the naira.
The Nigerian government believes that its currency has been feeling the heat from unregulated crypto activities.
Why does this matter?
P2P platforms are a lifeline for many Nigerians to access cryptocurrencies, bypassing traditional banking hurdles. By banning these, the government hopes to control currency fluctuations but at the risk of pushing crypto trading into the shadows.
The takeaway: This move could backfire by making crypto transactions in Nigeria less transparent and harder to regulate in the long run.
On the one hand, we have the US, where several ongoing developments aim to provide a clearer regulatory situation for the crypto industry, be it for better or worse. On the other hand, Nigeria is now tightening controls, which might restrict access for everyday users and push trading activities underground. The impact of these differing strategies on their respective markets will be an important development to watch.
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About Veriscope
Veriscope, the compliance infrastructure on Shyft Network, empowers Virtual Asset Service Providers (VASPs) with the only frictionless solution for complying with the FATF Travel Rule. Enhanced by User Signing, it enables VASPs to directly request cryptographic proof from users’ non-custodial wallets, streamlining the compliance process.
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