Cryptocurrency regulation
Price volatility has long been one of the features of the cryptocurrency market. When asset prices move quickly in either direction and the market itself is relatively thin, it can sometimes be difficult to conduct transactions as might be needed https://onlineigaming.com/gambola/. To overcome this problem, a new type of cryptocurrency tied in value to existing currencies — ranging from the U.S. dollar, other fiats or even other cryptocurrencies — arose. These new cryptocurrency are known as stablecoins, and they can be used for a multitude of purposes due to their stability.
Crypto market capitalization or “crypto market cap” for short is a widely used metric that is commonly used to compare the relative size of different cryptocurrencies. On CoinCodex, market cap is the default metric by which we rank cryptocurrencies on our frontpage. We also track the total cryptocurrency market cap by adding together the market cap of all the cryptocurrencies listed on CoinCodex. The total market cap provides an estimate on whether the cryptocurrency market as a whole is growing or declining.
In January 2024 the SEC approved 11 exchange traded funds to invest in Bitcoin. There were already a number of Bitcoin ETFs available in other countries, but this change allowed them to be available to retail investors in the United States. This opens the way for a much wider range of investors to be able to add some exposure to cryptocurrency in their portfolios.
Cryptocurrency regulation
MAS has generally taken an accommodating approach to cryptocurrency exchange regulation, applying existing legal frameworks where possible. In January 2018, MAS issued a press release warning the public of the risks of speculating with cryptocurrency while Deputy Prime Minister Tharman Shanmugaratnam stated that cryptocurrencies are subject to the same AML and CFT measures as traditional, fiat currencies. The Payment Services Act 2019 (PSA) brought exchanges and other cryptocurrency businesses under the regulatory authority of MAS from January 2020, and imposed a requirement for them to obtain a MAS operating license. Since then, MAS has issued licenses to a number of high profile crypto service providers, including DBS Vickers (DBS Bank’s brokerage arm) and the Australian crypto exchange, Independent Reserve.
RI Gen L § 19-14-1 includes “maintaining control of virtual currency or transactions in virtual currency on behalf of others” under the definition of currency transmission. RI Gen L § 19-14-2 states that “No person shall engage within this state in the business of…Providing currency transmission for a fee or other consideration…without first obtaining a license or registration.” RI Gen L § 19-14.3-1 lays out a series of exemptions from this requirement. RI Gen L § 19-14.3-3.5 is a list of disclosures virtual currency businesses must make to their customers. RI Gen L § 19-14.3-3.6 states that “ A licensee that has control of virtual currency for one or more persons shall maintain in its control an amount of each type of virtual currency sufficient to satisfy the aggregate entitlements of the persons to the type of virtual currency.” Rhode Island’s Department of Business Regulation has posted further guidance in the Rhode Island Currency Transmission Law: Frequently Asked Questions.
Under 209 CMR 45.00 MA Code of Regs 45.02, Massachusetts only regulates money transmission to foreign countries. The Massachusetts Department of Banking issued Opinion 19-008 in 2020 which found that a company that processed fiat to virtual currency exchanges and allowed for cross-border virtual currency transactions did not consist of license-requiring international money transmission. Opinion 020-003, also in 2020, found that a company providing a digital wallet service and peer-to-peer transactions did not require a license either.
Nebraska has other laws relating to cryptocurrency beyond the Financial Innovation Act. NE Code § 8-2715 defines monetary value as “a medium of exchange, whether or not redeemable in money,” which encompasses cryptocurrency. NE Code § 8-2716 defines money transmission as “the business of the sale or issuance of payment instruments or stored value or of receiving money or monetary value for transmission to a location.” NE Code § 8-2725 states that “a person shall not engage in money transmission without a license.” NE Code § 8-2724 states that “The requirement for a license…does not apply to… digital asset depository institutions.” 316 NE Admin Rules and Regs ch 316-54-102 includes cryptocurrency under “unacceptable forms of payment” for “Mechanical Amusement Devices” (such as slot machines).
Missouri has no cryptocurrency-specific laws, but cryptocurrency may be encompassed in the existing sale of checks law. MO Rev Stat § 361.700 defines a check as “any instrument for the transmission or payment of money and shall also include any electronic means of transmitting or paying money.” MO Rev Stat § 361.705 states that “No person shall issue checks…without first obtaining a license from the director.” Major cryptocurrency exchanges Coinbase, Binance, and Gemini have all registered as money transmitters in Missouri, but Binance is the only one to register under “Sale of Checks.”
Bitcoin cryptocurrency
The expenditure of energy ties the Bitcoin Network to the physical world. Since mining consumes real-world energy, it comes at the opportunity cost of expending that energy (and the money needed to pay for it) on other things.
Decentralization is a solution to avoiding central authority flaws. Bitcoin is revolutionary in achieving a truly decentralized value transfer system, based on cryptology and economic incentive — new bitcoin and transaction fees paid to the miners. In return, miners invest in specialized hardware and spend a lot of electricity. They do this to find proof-of-work for each block, thus securing the blockchain. Miners are motivated to keep Bitcoin safe, operating, and most importantly, censorship-resistant.
In the U.S., other cryptocurrencies that lack bitcoin’s decentralized structure enjoy less regulatory clarity. Crypto tokens often face stricter scrutiny as they have more in common with traditional securities than commodity money like gold and bitcoin.
In early 2024, Bitcoin’s price jumped into the mid $40,000s as expectations grew for Bitcoin Spot ETFs’ approval. By mid-February 2024, after the ETFs were approved, Bitcoin’s price climbed to more than $50,000.
Bitcoin is a digital currency that can be used instead of fiat currencies or physical cash. It uses a blockchain to secure transaction information out of the reach of centralized third parties who traditionally facilitate and regulate transactions.
The blockchain is implemented as an ordered list of blocks. Each block contains a SHA-256 hash of the previous block, chaining them in chronological order. : ch. 7 The blockchain is maintained by a peer-to-peer network. : 215–219 Individual blocks, public addresses, and transactions within blocks are public information, and can be examined using a blockchain explorer.