Crypto: The SEC and the EU prepare new regulatory plans for 2024.

Cryptography is a rapidly expanding field that is attracting more and more investors, entrepreneurs, and users. However, it also presents challenges to regulatory authorities, who seek to protect crypto consumers, prevent fraud, and combat money laundering. In this regard, the SEC and the European Union plan to step up their enforcement and regulatory approach to the cryptographic sector in 2024. So, what are the main issues and expected changes?

SEC to Continue Aggressive Enforcement Efforts in 2024 After Record-Setting 2023 https://t.co/mPgF5RXzkt

— JD Supra (@JDSupra) February 28, 2024

The SEC continues its crackdown on unregistered crypto companies

For a long time, the regulation of the crypto sector has been a vehemently debated issue. According to the report by Norton Rose Fulbright, the SEC will continue its “aggressive pursuit” of cases and enforcement actions related to:

• unregistered offerings,
• NFTs,
• unregistered crypto exchanges in 2024.

The SEC has already initiated lawsuits against several cryptographic companies. They notably include Telegram, Kik, Ripple, and Coinbase, accused of violating securities regulations.

The EU prepares a regulatory transformation of the crypto sector

In the EU, the MiCA legislation will be progressively implemented. These crypto regulations will introduce new requirements, including:

• the application of the “travel rule” for crypto assets,
• the regulation of various digital asset service providers.

The travel rule came into effect on December 30, 2023. It requires crypto companies to provide information about the sender and the recipient of a crypto asset transfer. The purpose: to facilitate the traceability of cryptocurrencies and prevent money laundering.

Regarding digital asset service providers, they will need to obtain authorization. They must also comply with the governance standards, transparency, consumer protection, and risk management in force.

Given these imminent changes, it becomes imperative for crypto players to adapt and comply with the new standards. How will this regulation influence innovation and the dynamics of the cryptocurrency market? The future will tell!