Regulations and Future Flashcards
Name two bank-style regulations applied to crypto firms.
Capital & liquidity requirements; consumer protection mandates.
Name two industry-wide regulatory measures for cryptocurrencies.
AML/KYC procedures; clear token security vs commodity definitions.
List two challenges in enforcing crypto regulations.
Global regulatory inconsistency; blockchain pseudonymity.
What problem does global inconsistency cause?
Enables regulatory arbitrage across jurisdictions.
Give one argument for crypto’s financial inclusion potential.
Low-cost cross-border remittances for expatriates and the unbanked.
Give one argument against mass crypto adoption.
High price volatility prevents reliable medium-of-exchange.
What tool can central banks use to compete with crypto?
Issue Central Bank Digital Currencies (CBDCs).
How does pseudonymity affect AML efforts?
Makes tracing suspicious transactions difficult.
Why is token classification (security vs commodity) important?
Determines regulatory treatment and oversight of ICOs.
Name one self-regulatory organization in crypto.
Crypto Rating Council or Token Taxonomy Initiative.
