EU, U.S. and Other Countries Tighten Up Regulations on Crypto Assets

According to media reports on March 31, EU lawmakers will back stricter security measures for transfers of bitcoin and other crypto-assets out of concern that they could undermine financial stability and be used for crimes, the latest sign that regulators are tightening the grip on the new generation of currencies.Two committees in the European Parliament have formulated relevant options to be voted on.

Under the standards for combating money laundering set by the Financial Action Task Force, crypto companies would have to collect and share data on transactions of crypto assets.On the same day, U.S. Rep. Trey Hollingsworth and Sen. Bill Hagerty introduced a bill titled “Stablecoin Transparency Act,” aiming to bring more transparency to the stablecoin market and seek solutions to protect consumers and the economy without stifling innovation. The bill has already gained significant support.On April 1, the Bank of Japan reportedly called for G7 nations to establish a common regulatory framework for cryptocurrencies to target countries that circumvent economic sanctions with digital currencies, such as Russia.

Observers remark that as the burgeoning growth of emerging, unregulated cryptocurrencies can create separate global settlement systems, posing a challenge to the traditional regulated fiat currency system and disrupting the traditional financial system order of surveillance of criminal acts, such as money laundering, countries are increasingly looking for reasonable regulation on cryptocurrencies. The Russian invasion of Ukraine has certainly accelerated this process.