The crypto industry has been growing rapidly over the past few years, with more and more people investing in cryptocurrencies like Bitcoin, Ethereum, and Litecoin. However, recent regulatory actions by the U.S. government have caused concern among many in the industry.
In July 2021, a new infrastructure bill was introduced that included provisions for regulating cryptocurrency transactions. One of these provisions would require anyone involved in “brokering” digital assets to report their activities to the IRS.
This provision sparked outrage among many in the crypto community who argued that it was too broad and could potentially stifle innovation within the industry. Some also pointed out that it could be difficult to comply with since there is no clear definition of what constitutes “brokering.”
Despite these concerns, the provision ultimately passed as part of the infrastructure bill. This led some companies to take action to protect themselves from potential legal liability.
One such company was Binance.US, which announced on September 10th that it would stop offering tradingSponsored Product services for customers based in certain states including Connecticut, Hawaii, Idaho, Louisiana, New York Texas and Vermont due to regulatory uncertainty.
“I suspect we will see more and more moves like this,” Andrew Lawrence said about Binance’s decision . “Yes,the US is still one of biggest market but people who are building in crypto industry are doing so not because size of market now but because size of future market.”
Lawrence is co-founder and CEO at Censo Inc., an on-chain custody solution provider focused on institutional investors looking for secure storage solutions for their digital assets
Binance isn’t alone; other exchanges have taken similar steps recently as well. For example , Kraken stopped offering margin tradingSponsored Product services for clients based in Australia earlier this year due to increased regulatory scrutiny .
These moves highlight just how uncertain things currently are when it comes to regulation around cryptocurrencies – particularly given how quickly regulations can change depending on political winds or economic conditions..
However despite the regulatory uncertainty, many in the industry remain optimistic about its future. They believe that cryptocurrencies will continue to grow and become more mainstream over time.
One reason for this optimism is the increasing number of institutional investors getting involved in crypto. These are typically large financial institutions like hedge funds or pension funds who invest on behalf of their clients.
Institutional investment has been growing rapidly over the past few years as these firms look for new ways to diversify their portfolios and generate returns in a low interest rate environment.
Another factor driving growth in the industry is increased adoption by businesses and consumers alike. More retailers are starting to accept cryptocurrencies as payment, while individuals are using them for everything from online purchases to remittances.
Despite all this activity however , there remains significant challenges facing those looking to build sustainable business models around cryptocurrency . One major issue is volatility – prices can fluctuate wildly within short periods of time making it difficult for businesses relying on stable revenue streams .
There’s also still a lot of confusion among regulators when it comes to how best regulate digital assets given they don’t fit neatly into existing categories such as securities or commodities..
However despite these challenges, many entrepreneurs see huge potential opportunities ahead if they can navigate through current uncertainties successfully..
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