Regulators Look to Tame the New Financial ‘Wild West’

The new sheriffs in town looking to tame what’s being described as the “Wild West” of finance—the cryptocurrency space—are, ironically, primarily in Europe, and many crypto-company leaders are none-too-happy with the new lawmen, according to a new report.

The European Union has put forward numerous proposals to regulate cryptocurrencies, including requiring crypto firms to disclose transaction details. The reaction has not been positive from everyone.

“Anonymity is big within the world of cryptocurrency, from the anonymous crypto wallets to the creative pseudonyms of crypto and NFT creators,” observed Amrit Dhami, associate analyst in the Thematic Research team at GlobalData. “It’s a big selling point for consumers who don’t want their transactions to be traced. It also maintains a veil of mystique around the blockchain community that in itself propagates further hype and intrigue. However, crypto that operates in a decentralized manner can be used in illegal transactions. Furthermore, the lack of transparency renders crypto exchanges risky as their legitimacy cannot be established. A regulatory stamp of approval could go a long way in making cryptocurrency more accessible and widespread among consumers.”

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