US Takes Lead in Implementing Tighter Regulations for Cryptocurrency

Despite the fall of the crypto market in 2022, the United States is at the forefront of the implementation of tighter regulations surrounding cryptocurrency. As the adoption of cryptocurrencies continues to grow worldwide, the US is taking steps to incorporate virtual assets such as crypto into the traditional finance and banking system.

According to a report released by Research and Markets, the number of US adults owning and using crypto is expected to double by 2023, with payments made via cryptocurrencies reaching billions of euros in value, witnessing a high double-digit growth compared to 2021.

In the US, there are policies and regulations already in place to regulate the cryptocurrency market, such as the Responsible Financial Innovation Act and the Crypto Regulation Bill. This fast-growing crypto market, however, experienced a slowdown in terms of funding and investment in 2022 after huge investments in 2021.

Despite this setback, the US is still at the forefront of implementing tighter cryptocurrency regulations compared to other countries. Meanwhile, Middle Eastern and African countries are catching up to their developed counterparts globally in terms of adoption and ownership of cryptocurrency.

The UAE and Bahrain are front runners in terms of embracing cryptocurrency as an alternate payment method, with the UAE being a growing crypto hub, friendly regulations, and trust in digital currencies. Abu Dhabi is licensed to be the home of the largest crypto exchange in the US. The decentralized finance ecosystem is also growing rapidly within the region.

Bahrain, on the other hand, is a large fintech hub, and the first country to impose significant regulations relating to cryptocurrency in 2019. In Africa, countries such as Kenya, South Africa, and Mauritius are taking policy measures to incorporate cryptocurrencies into the conventional banking system.

The adoption of cryptocurrencies appears to be increasing rapidly, with the US taking the lead in implementing tighter regulations. This growth in the crypto market presents both opportunities and challenges for policymakers and investors alike.