As an analyst with a background in financial regulation and experience in the crypto industry, I understand Mikko Ohtamaa’s concerns. The Danish Financial Supervisory Authority’s (DFSA) intention to ban unregulated Bitcoin wallets might seem like a reasonable measure to ensure consumer protection, but it could have unintended consequences.
The Danish Financial Supervisory Authority (DFSA) has declared its plan to prohibit unregulated Bitcoin wallets within Denmark.
As a regulatory analyst, I’d interpret this announcement from DFSA as follows: I have observed that activities carried out on unregulated crypto platforms have raised some concerns. Therefore, to ensure compliance with the law, all entities involved in the crypto sector such as platforms, service providers, interface designers, and mobile app developers must undergo regulation to legally operate in Denmark.
As a researcher studying the latest developments in digital asset regulation, I have come across an important update concerning Denmark’s approach to cryptocurrency wallets, specifically Bitcoin wallets.
— Mikko Ohtamaa (@moo9000) June 26, 2024
Under the latest regulations, crypto exchanges and trading platforms must secure approval from Danish authorities prior to providing Danish clients with Bitcoin wallets, decentralized exchange interfaces, or any other cryptocurrency services.
This month, the European Banking Authority (EBA) unveiled a draft of regulatory technical standards (RTS) concerning prudential matters under MiCA legislation. The proposed RTS encompass revised own funds conditions, adjustments to liquidity provisions, and rigorous recovery plans for issuers of crypto-assets, specifically focusing on stablecoins pegged to the US Dollar.
Yet, the rigorousness of these regulatory guidelines has ignited disagreements among cryptocurrency enthusiasts. Mikko Ohtamaa, a well-known figure in crypto circles, voiced his apprehensions that overly stringent regulations could stifle innovation and possibly cause certain digital assets to disappear from circulation.
“Though the DFSA may have noble goals, excessive regulation in the peer-to-peer crypto world isn’t beneficial for anyone. Attempting to make every participant an intermediary under regulation might seem logical on the surface, but it’s essentially a veiled attempt to outlaw all cryptocurrencies. In essence, acknowledging the true intention could be: “We’re trying to eradicate cryptocurrencies, just disguising it as regulation.””
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2024-06-27 03:02