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ANB Investments CEO Calls for Clarity on Crypto Regulations

  • Lack of regulatory clarity could hinder crypto adoption in the coming years.
  • Regulatory agencies in the United States have differing opinions about cryptocurrencies.

New investors are entering the crypto market, but unclear regulatory policies have been identified as possible barriers to widespread adoption. In an interview with Cointelegraph, Jaime Baeza, the CEO of crypto hedge fund ANB Investments, spoke about how the lack of regulatory clarity has been a source of concern.

The Web3 space has grown quickly from what it used to be, and according to Jamie, regulators need to bring clarity on time to match the industry’s growth. According to the ANB CEO, there’s currently no single regulatory pattern in the crypto world. Different countries have adopted different stances in their approach to the crypto industry, which has confused investors.

Jamie said,

While one could argue that the development of homogenous regulations applicable across different jurisdictions might make more sense, this approach also risks being anti-competitive and smothering creativity when innovation is needed most.

However, Jamie added that regardless of the unclear regulatory policies, the crypto industry is still in its early stages, leaving room for experiments and failures. According to the hedge fund boss, there is still time for regulators to examine what policies work and what would be unfruitful.

Speaking on crypto adoption, Jamie noted that education and more clarity about the crypto space could help drive adoption in the coming years. He remarked,

Key factors moving forward will include more regulatory clarity, more education around the digital assets space and a greater acceptance. A better macro environment will also be a crucial factor in enabling institutions to take the leap from traditional to Web3 and crypto.

Where Does Crypto Stand in the United States?

The crypto space is one of the fastest growing industries in the world, making it challenging to stay up to date with the regulations in many nations. Despite the difficulty in finding a consistent legal approach at the state level, the United States is making progress in developing federal cryptocurrency legislation.

Several agencies in the US view cryptocurrencies as financial substitutes but not legal tender. The Financial Crimes Enforcement Network (FinCEN) believes crypto is not legal tender but considers crypto exchanges to be money transmitters on the grounds that cryptocurrency tokens substitute for currency.

The Internal Revenue Service (IRS) has published tax guidance defining crypto as “a digital representation of value that operates as a medium of exchange, a unit of account, and/or a store of value” but not legal tender.

The United States permits the activities of crypto exchanges, but they are governed by the Bank Secrecy Act (BSA). In essence, this means that companies that offer crypto exchange services must register with FinCEN, put in place an AML/CFT program, keep the necessary records, and file reports with the appropriate authorities.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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