Regulations Round Up – April 2022

Cryptocurrency prices saw a strong performance in March as investors eyed new regulatory changes in Russia and risk reduced. In total, the market cap of all cryptocurrencies moved back to over $2 trillion for the first time in months. The forex market was volatile as US yield curve inverted and the Fed vowed to be more aggressive. As an agency specialising in financial marketing, our team has rounded up the top regulation changes in March, and now we’re looking at what’s coming up in April 2022.

SEC to redefine securities dealer

The Securities and Exchange Commission (SEC) has been studying the blockchain industry for a while and is attempting to come up with regulations. In March, the regulator published a 200-page report that sought to redefine what it means to be a securities dealer.

The goal of the new change is mostly aimed at the stock and bonds market. But close watchers believe that it could also target Decentralized Finance (DeFi). That’s because it targets companies that use automated and algorithmic trading technology to execute trades and provide liquidity to the market. Many cryptocurrency advocates believe that new regulations in the DeFi industry are needed to safeguard client funds. In May, the Ronin Network was hacked leading to losses worth over $265 million.

Meanwhile, in a statement, crypto company Grayscale threatened to sue the SEC if the agency denies its application for a Bitcoin ETF.

Russia considers accepting BTC

Russia has been excluded from most industries because of ongoing tensions in Ukraine. Its funds have been withheld in western capitals and its banks excluded from the important SWIFT network. In a statement, Russia said that it was considering selling oil and gas using Bitcoin. If this happens, it will be a sign that Russian regulators see BTC as a valid store of value. It also means that its regulators will implement friendly crypto regulations. BTC prices have been bullish in anticipation of this decision.

ASIC targets influencers

ASIC, the financial regulator in Australia, issued a warning on forex and investment influencers saying that they needed to be licensed. The regulator pointed out that people who promise big returns on the investments they promote, were doing so against the law. Also, it warned that people who earn from broker referral links require a license to do so. The statement came at a time when many Australian traders and investors have turned to social media for tips. A commissioner said:

“It is crucial that influencers who discuss financial products and services online comply with the financial services laws. If they don’t, they risk substantial penalties and put investors at risk.”

FCA targets cryptocurrencies

The Financial Conduct Authority (FCA) announced that it will stop the temporary registration for crypto assets on March 31 2022. As a result, many companies, including well-known brands like Revolut and Copper Technologies were left in the cold. Some of the 12 companies said that they will likely seek to be registered in other countries. Only 33 firms have been registered by the FCA.

If you enjoyed our Regulations Roundup March 2022, be sure to hit the share button. Love this type of content and want it for your FX broker or crypto exchange? We hear you. Contact the Contentworks team for financial services content

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