The Crypto Landscape Is About To Change Forever: Part 2
... continuation. Beginning in a previous article.
Crypto products will change and adjust
Crypto investors in regulated jurisdictions will also see a temporary reduction in the number of crypto products and services currently offered on the market.
As the rules are adjusted, we must remember that one of the key conditions is to protect investors from over-investing that they cannot afford.
This means that, at least temporarily, crypto investors will face shrinking accounts, DeFi opportunities, leveraged trading opportunities, and futures, as these are the main methods by which new investors are over-expanding. Only once the new regulatory framework is in place will we see trading platforms reopen access to these products.
Crypto investors need to keep up with the changes.
Moving forward, crypto investors interested in maintaining access to crypto investment opportunities will only have one option. Find, register and trade only on regulated platforms.
As explained above, ignoring the requirements for the use of cryptocurrencies can lead to freezing, blocking of funds and general denial of access. This is a situation that no investor wants to face.
When evaluating options for a cryptocurrency trading platform, investors will want to consider the following (let’s take Canada as an example):
- Make sure that the trading platform you choose is compliant with the regulatory framework or is in the process of obtaining a license. Keep in mind that this process takes a lot of time, which means that trading platforms that are just getting started are likely to be severely restricted or unavailable for an extended period of time.
- Make sure your trading platform is a fully registered MSB (Money Service Business) with FINTRAC (Canadian Financial Transactions and Reports Analysis Centre).
- And most importantly, make sure that your trading platform is fully compliant and registered with the OSC (Ontario Securities Commission) or an equivalent body in your jurisdiction.
Completing this list will shed light on the fact that, unfortunately, most cryptocurrency trading platforms in Canada are not eligible.
The future is cloudless
Despite the frustrations that regulation can cause, in general, the requirements should be seen as an incentive for the entire cryptocurrency market. While the changes will require crypto investors to make adjustments, this is a strong signal that the crypto market is starting to reach full-scale adoption.
We are still at the beginning of the journey, but this is very positive news.
Regulation is one of the advances that the industry will need to adjust to as the best and brightest minds in crypto continue to develop fantastic products, services and offerings across the board.
Those crypto investors who are well versed in the aforementioned points and who are preparing for change will keep pace with innovation, taking advantage of the opportunities in an ever-evolving market.
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