Crypto regulation has generated a lot of action from major companies in the industry. However, despite their submission, users don’t seem to hear it that way.
A very controversial surveillance
Crypto regulations have been a source of concern for the crypto sector since announcing their implementation. However, the writing of the MiCa law is slowing down oversight of the industry, while other countries, such as the United States, are hesitating on the path to follow. Many crypto giants, such as Binance, have preferred to bow their heads and submit to the demands of regulators by securing valuable licenses in various countries. As for transaction monitoring, this is already a reality for some businesses.
If many of them now comply with regulations, the cause for users is far from certain. Crypto enthusiast Joe Hall is the perfect witness. User of the Gemini exchange platform, Hall posted the screenshot of a message directly from the latter.
Indeed, under the new regulations that require companies to know their customers, Gemini is empowered to request the justification of certain transactions, purchase or sale of cryptocurrency. A fact far from pleasing to the main stakeholder, who announces that he would rather look elsewhere.
It didn’t take long for the message to spark discussion. While some internet users argue that it’s better to get used to this process, they criticize the brutality. Receiving an e-mail after a suspicion of money laundering is not pleasant for anyone.
For others, the verdict is final: they are now falling back on unregulated platforms. A decision that could put a spoke in the wheels of regulators. Worse, it could lead to the closure of unlicensed platforms, forcing users to return to controlled land.
Will crypto soon be worse than banking?
If the fact that the platform is being questioned causes users to want to transfer their money elsewhere, the way it is supervised seems to be the problem. In some cases, the person’s crypto wallet is even frozen pending a satisfactory response.
Worse, for some netizens, crypto regulations are proof of the wrong direction for crypto. While the industry originally wanted to create an alternative to overseeing the banking system, its own system may be even worse.
With regulators’ distrust at their peak, questions like this are likely to increase in the future. However, the phenomenon may decrease little by little after the implementation of the regulation, once it is well established. However, it will be several months before that happens. Indeed, the authorities are currently chasing money laundering. The freedom of users can therefore only be regained once the crypto sphere has been cleaned up.
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