Crypto Regulation: Why the West Should Look to Emerging Markets for Guidance

The United States, often seen as a leader in financial and technological advancement, has struggled to establish clear and consistent crypto regulation frameworks. This lack of clarity has allowed other countries, particularly in the Middle East and Asia, to take the lead in creating effective frameworks tailored to digital assets.

The US Should Not Be the Blueprint for Regulations

The US has struggled to regulate the crypto industry, with regulatory entities, such as the Securities and Exchange Commission (SEC), often taking hostile and inconsistent measures. High-profile lawsuits against prominent crypto companies have cast a shadow over innovation and pushed some firms to move to friendlier countries. The absence of clear guidelines from the SEC has left founders and investors uncertain about their next move.

One of the main issues is that the US has been trying to fit digital assets into existing laws, which were never designed for crypto in the first place. While the newly elected crypto-friendly Congress indicates hope for progress, the country has a lot of catching up to do.

Emerging Markets: The Hidden Gem of Regulations

High-growth markets such as Indonesia and Malaysia have introduced a new approach to crypto regulations, understanding that digital assets should be regulated like any other assets. Indonesia’s Commodity Futures Trading Regulatory Agency officially classified all digital assets as commodities as early as 2019. In Malaysia, the Securities Commission created a comprehensive framework for crypto exchanges with high standards for licensing, investor protection, and anti-money laundering.

These measures have reduced fraud and improved trust in the overall system, making using crypto safer for everyone. As a result, the Asian crypto market is thriving, with the Indonesian crypto market surpassing $30 billion in transactions from January to October 2024, a 350% increase compared to the previous year.

Emerging Markets Lead in Crypto Utility

High-growth markets are seemingly more advanced in crypto regulations because crypto utility shines brighter in these markets. Crypto addresses several pitfalls, such as high remittance costs and limited access to owning assets and investing. Digital assets also serve as a hedge against inflation, enabling consumers to own a tokenized, digital fraction of gold at a much lower price.

Tips for investors and crypto enthusiasts:

  • Keep an eye on emerging markets for crypto regulations and innovations.
  • Understand the benefits of crypto utility in high-growth markets.
  • Consider investing in crypto platforms focused on financial inclusion in emerging markets.

The future of crypto won’t be defined by Wall Street or Silicon Valley. It will be defined by the people who can use crypto daily to solve real-world problems and address the pitfalls of traditional finance.

Stay up-to-date with the latest news and trends in the crypto industry on Global Crypto News.

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