Will 2022 be the year of crypto regulation?

As 2021 draws to a close, commentators and analysts look towards the next year and try to predict the future of the market. In the crypto and digital assets space, volatility rules supreme. But as more institutions move into the decentralized finance space, a recurring theme is regulation. 

To assess what the future of regulation in the crypto space looks like, we must first assess and understand the global regulatory landscape and how it has evolved over the past 12 months. There has barely been a jurisdiction where crypto regulation has not moved in 2021. There are a myriad of reasons why this has happened. 

First and probably most notable, China banned all crypto transactions in September, essentially making all tokens illegal. This came months after the Chinese government told banks to stop facilitating mining. Now, as the Government is promoting the digital yuan, they are cracking down on a number of secondary crypto transactions and activity, essentially squeezing the space and pushing crypto companies and investors elsewhere. 

Because of this, other nations moved their position to offer an alternative to these Chinese actors. This year, the United States has gradually become more crypto-friendly. For example, Foundry USA has become the second largest Bitcoin mining pool as Chinese miners left the country. This is indicative of the attitude the U.S. is now having towards digital assets. 

Source : Forkast.news