Cryptocurrency is in the spotlight since the rise of Bitcoin in 2010. Investors like Tesla's incorporation, are consistently pushing the digital currency to new heights after it declared a purchase of $1.5 million value of crypto coins the previous month. Many individuals are entering the market because of Bitcoin’s capability to develop a higher return on investments. While it is transforming leaders everywhere, new laws to improve the adoption of virtual currencies persists as a trendsetter. The concept behind the latest laws is to reduce money laundering and other associated cybercrime through cryptocurrency.
In the present COVID-struck period, cashless transactions have become hard which makes digital currencies even more famous. In 2018, the crypto market saw a significant rise when the value of bitcoin capped a huge $19,000. The concept behind this tremendous increase is its consistently rising popularity among users and businesses alike. Cryptocurrency is significantly resilient since investors are completely finding stock values. This makes popular currencies like bitcoin rise significantly increasing popularity among users and businesses alike. By the end of March 2020, the total amount generated by the market was approximately $265,545 billion. Nowadays, there exist 2000+ types of crypto with more being generated every day.
Presently, the electric automobile manufacturing business, Tesla, funded a great sum in Bitcoin assets. The digital currency’s amount rose up by $49,000 after it rose at a steady pace of funds. In a study, Tesla also declared to accept Bitcoin transactions for buying their vehicles, permitting the digital currency to a major extent. Since bitcoin is pretty resilient in essence, it still persists a problem for individuals to consider about its short-term use to more expensive investment.
The cryptocurrency, due to its pseudo nature, is a stream for money launderers to conduct their illegitimate activities. Due to a similar reason, monetary authorities around the world are concerned about improving the services given by VASPs. Although the financial action task force travel rule and the fifth anti-money laundering directive by the EU list instructions on altering virtual currencies, nations need to come with their own regulations to make sure transparency in digital asset exchanges.
The Indian government will initiate a bill to control the adoption of cryptocurrency and other virtual assets in its continuous budget session the present year. The virtual currency bill focuses on limiting the use of all privately owned digital currency assets authorized by 3rd-party service providers. This action is taken to answer the incompetence in managing the assets of users and giving them the level of transparency they need.
Therefore, to bridge the gap, India is initiating its own central bank virtual assets so that the marker doesn’t eventually end. This will enable the authority to hold a check on virtual coins and their money stream to reduce money laundering.
The Singapore government has initiated an improvement on its PSA which was published in 2020. The latest alterations suggest that companies and service providers of cryptocurrencies would have to get a permit to conduct their tasks. The set of extended laws by MAS is associated with digital payment providers working within the state or from other nations.
Singapore aims at shielding service providers of DPTs who are exploited by fraudsters and criminals to hide their assets
The MAS can now enhance authorities and service providers by giving cryptocurrency exchanges,
Criminals use cryptocurrency platforms as a secure haven to hide their identities and conduct illegitimate malicious activities. More than $5 billion were lost in crypto attacks in 2020, and the circumstance has become even worse in present years. To answer this query, nations have come up with legitimate digital currencies. But complying with the global anti-money laundering laws still persists as a challenge in P2P exchanges.
Virtual currency service providers can conduct Know Your Customer compliance practices while user onboarding to get the necessary data needed to authenticate them. This could not only enable 3rd-party virtual asset service providers to continue giving their services with assurance but also make digital currencies a safe gamble.
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