Cryptocurrencies are exploding like never before throughout the world (or cryptos). Cryptocurrencies have developed as a new asset class, with hedge funds and financial businesses throughout the world establishing new crypto-related instruments.
Individuals all across the world are addicted to and long on cryptos, and they use their mobile devices to do it. Cryptocurrencies were created with the goal of democratizing finance, and it looks that the moment has arrived.
Cryptocurrencies have a number of advantages over fiat currencies, including a decentralized structure with no central authority or governing body, no printing, enhanced security, privacy, and anonymity, ease of use and accessibility, fast transaction speeds, reduced or no KYC (know-your-customer) requirements, low transaction costs, and so on.
With this upward tendency come new opportunities as well as possible hazards. While cryptocurrency has sparked widespread interest, the most pressing issue for governments and regulators throughout the world is determining how to regulate this asset class.
Governments and agencies inside the United States have taken a variety of perspectives on the issue. While El Salvador is the first government to make Bitcoin legal tender, crypto markets anticipate Paraguay and Venezuela following suit.
Russia is reportedly considering accepting bitcoin as payment for its oil and gas exports, following the imposition of sanctions by the west as a result of its recent invasion of Ukraine. Ukraine, on the other hand, has turned to cryptocurrency to fund its military campaign against Russia, which is drawing donors.
Kraken, one of the world’s largest and oldest crypto exchanges, was recently granted a licence by Abu Dhabi Global Market to operate a regulated virtual asset exchange platform, a Virtual Asset Multilateral Trading Facility (MTF), and a Custodian in Abu Dhabi and the wider UAE.
Local investors will be able to invest, trade, withdraw, and deposit virtual assets directly in their own currency. Dubai is luring crypto companies as well, having passed the first law governing digital assets and establishing the Virtual Asset Regulatory Authority (VARA) to supervise the industry.
To read our blog on “A Russian minister said, cryptocurrency will become a payment method “soon,” click here.
