The future is all about regulation


It is well known that once the US government makes its mind up that it is going to shut something down, it does so.

It is equally well known that in shutting something down, a high-profile media campaign surrounds it, warning others not to engage in the activities which resulted in such a shut down.

One of the first clear signs that the securities regulators and law enforcement agencies in the United States would look toward sanctioning unlicensed cryptocurrency exchanges was its senior government officials having discussed tax treatment and the possibility of full scale regulation for crypto assets in the federal United States just a few weeks ago.

The likelihood that the government in the third most populous nation on earth would look to make a regulatory framework for crypto assets was well received and as a result the value of the most popular cryptocurrencies rocketed. This is a good sign. It shows that the cryptocurrency fraternity is now well on board with the fact that decentralized finance is the future and that with comprehensive regulation it will flourish, be sustainable and develop further.

Today, the national sanctions enforcement agency in the United States has blacklisted a cryptocurrency exchange which went by the name of Suex and blacklisted it from operating anywhere in the United States.

This is the first time the Treasury Department has ever blacklisted a cryptocurrency exchange, however the US Treasury Department has done so with gusto, putting Suex in the same catagory as suspected terrorists.

According to reports today, Deputy Treasury Secretary Adewale Adeyemo said in a press call ahead of the announcement that Suex facilitated transactions from at least eight ransomware variants, and as much as 40% of Suex’s transaction volume was associated with addresses linked to known malicious actors.

This once again emphasizes the importance of licensing and full regulation for cryptocurrency exchanges. Now, as a result of the sanctions on Suex, anyone who is a US permanent resident or a US citizen is forbidden to use the exchange, and any customer found doing so can be jailed.

This is similar to the United Kingdom’s banning of Binance just a few weeks ago, but with more dramatic and strict ruling.

Both Binance and Suex operated without licenses for the regions that they approached and as a result, regulatory arbitrage allowed them to operate outside any trading terms that would be permissible under a regulated environment, which is short sighted and has resulted in blanket bans from operating in important markets, as well as disruption for users.

Mr Adeyemo of the US Treasury considers unregulated exchanges such as Suex to be dangerous from a ransomware point of view, also. He said today “Exchanges like Suex are critical to attackers’ ability to extract profits from ransomware attacks. Today’s action is a signal of our intention to expose and disrupt the illicit infrastructure used in these attacks.”

Research by Chainalysis statged that approximately $13 million in Bitcoin transactions sent through Suex have been directly connected to ransomware attacks, and that a series of fraudsters sent $24 million in bitcoin, while another $20 million in Bitcoin were tied to Hydra and other darknet markets.

CoinMetro is, and always has been a staunch advocate of proper regulation for cryptocurrency exchanges and infrastructure.

As the entire ecosystem gets increasingly more sophisticated and the world of decentralized finance expands across all areas of digital society including smart contracts and commercial settlements, regulation is absolutely essential for future growth and to foster a good quality environment for digital assets and blockchain projects which are rapidly becoming the de-facto way to do business globally.

CoinMetro has been a fully licensed and regulated cryptocurrency exchange in Estonia, which is the world’s most digitally advanced society and the most highly developed region for licensed cryptocurrency exchanges since launch, and is also a fully regulated payments solution with an Electronic Money Institute (EMI) license.

Within the next 12 months, CoinMetro has plans to unveil a multi-lateral trading facility (MTF), which, combined with a regulated crypto exchange and payments processor, would place CoinMetro firmly in the challenger bank category, with a world class crypto exchange and fiat on and off ramp attached to it.

As the important regions for commerce and finance such as the United States and Great Britain begin to sanction unlicensed exchanges quite severely, it is very clear that the time has come for the authorities, many of which are largely au fait with the workings of cryptocurrency, to clear away the unlicensed firms operating under the radar or away from good, fair and reasonable terms.

Cryptocurrency exchanges that offer a range of good quality services within a regulated environment are the future, not only of digital assets but of the world of finance and commercial services.

Under the license of a fully regulated exchange, CoinMetro offers a fiat omn and off ramp with a UK FPS and instant ACH, and for US specific transactions instant SEPA/SWIFT or credit card, plus EUR denominated pairs and margin.

CoinMetro also offers business accounts for small to medium sized enterprises (SMEs) to hold treasury in cryptocurrency, which is a service that will come into its own as crypto assets and blockchain functionality become more vital to the global industry.

It’s time to go regulated, and it’s time to work with a regulated cryptocurrency exchange that has built its entire system around regulated and fully licensed infrastructure and operating methods.