Regulations for trading cryptocurrencies are expected to be introduced in the next 3 years
Regulations for trading cryptocurrencies are expected to be introduced in the next 3 years. Cryptocurrency transactions are expected to be subject to official reporting requirements within three years at the earliest. And the United States could be the first country to introduce such regulations for trading platforms, according to a new survey by business analytics company IHS Markit this October.
Expected introduction of trading regulations for cryptocurrencies in the next 3 years – Survey
According to the survey of 90 respondents at banks, asset management companies, brokerage firms, and many other financial and non-financial institutions, the majority of respondents expected “post-trade reporting” to be introduced over the next 3 years.
By reporting post-trade transactions, the survey looks at transactions being conducted on centralized exchanges and other spot cryptocurrency markets. In addition, the expected reporting obligation may apply to exchange and market operators, not to individual traders.
When asked which jurisdictions are most likely to make this type of request, more than half of those who expect a request said the United States was the country most likely to make a request.
The UK, Switzerland and Singapore are the second most common reporting requirements, followed by the European Union, the survey found.
Regulations for trading cryptocurrencies will increase, and companies will need to watch out for signals from the regulator
Ronen Kertis, Head of Global Regulatory Reporting Solutions at IHS Markit, commented on the results, saying that the results show the adoption by companies in the crypto industry that there is stronger regulatory oversight.
“The speed with which trade reports are expected to be required for this relatively new asset class shows that the market is accepting both the need and the value of regulatory oversight for this asset class.”, said Kertis.
He added that this shows that companies in the crypto space need to “keep an eye on” signals from regulators as the market evolves. In addition, Kertis also praised several companies in the industry that have chosen to report their crypto transactions when it has not been requested to do so.
“Cryptocurrencies remain largely unregulated around the world, but if their importance continues to grow rapidly, they will certainly be subject to regulatory scrutiny.” a report outlining the survey results, which ended with a conversation about the emerging industry.
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