Cryptocurrency Regulations: Why Legal Foundation is Key

Cryptocurrency Regulations: Why Legal Foundation is Key

• eToroX, LMAX, Coinbase (NASDAQ:COIN), Gemini, and Kraken are some exchanges that follow compliance regulations.
• Switzerland, Liechtenstein, and the UAE are countries that are big on crypto regulation.
• TRES DLT DMCC were licensed to perform OTC trades in the UAE crypto market.

Many people celebrate cryptocurrencies for their unique qualities in the finance world. The fact that they are immutable, decentralized, and you can use them to send any amount of money anywhere in the world with little time makes them desirable.

However, many have feared them for these same reasons because criminals can easily use them for their nefarious activities. That’s why more governmental authorities are stepping in with regulations to curb these activities.

This article will consider some examples of exchanges that are compliant with regulation guidelines, some countries that go big on crypto regulation, and one company that has achieved a unique feat in the United Arab Emirates.

Examples Of Regulated Crypto Exchanges

Many of the big exchanges have acquired licenses in one way or another. Most of these licenses are in advanced countries that have recently been at the forefront of crypto regulations. For example, Binance has not registered its exchange in the US but launched a US-specific variant called Binance US in 2019.

Also, itBit, a highly reputable exchange launched in 2013, is regulated under the NFS(New York Department of Financial Services) and is subject to financial rules like the US Bank secrecy act and the US patriot act, among others. It is one of the stellar examples of crypto regulation in the modern world.

Other examples of crypto exchanges that are regulation-compliant in certain countries are:

• eToroX: Registered under the German Federal Financial Supervisory Authority.
• LMAX: Registered under the United Kingdom’s Financial Conduct Authority.
• Coinbase: Registered as a money service business under the United States Financial Crimes Enforcement Network(FinCEN) and the UK’s FCA
• Gemini: Registered with the New York State Department of Financial Service(NYSDFS).
• Kraken: Being one of the oldest exchanges, it has licenses in many countries, namely
  • (FinCEN)Financial Crimes Enforcement Network in the US
  • (FCA)Financial Conduct Authority in the UK
  • (FSA)Financial Services Agency in Japan
  • (FINTRAC)Financial Transactions and Reports Analysis Center in Canada
  • (AUSTRAC)Financial Transactions and Reports Analysis Center in Australia

Countries That Are Big On Crypto Regulation

• Switzerland: Cryptocurrencies and crypto exchanges generally can operate fully in the country as long as they are registered, licensed, and regulated under the Swiss Financial Market Supervisory Authority(FINMA).
• Also, the exchanges have to enforce strict KYC regulations in compliance with Anti-Money Laundering(AML) and CFF(Combating the financing of terrorism) acts.
• Liechtenstein: Cryptocurrencies are legal in Liechtenstein too, but they have to comply with AML regulations and have to be registered under the Financial Management Authority(FMA)
• United Arab Emirates: Cryptocurrencies and crypto exchanges have to register under the Abu Dhabi General Market(ADGM), the Dubai International Financial Centre(DIFC), and Dubai Financial Services Authority(DFSA).

For example, TRES OTC DMCC is a company that received the first license in Dubai, UAE for performing operations with cryptocurrency (buying and selling). The company is part of the TRES group of companies, each of which seeks to develop its activities in the crypto industry transparently and legally, choosing for this the most optimal jurisdictions from the viewpoint of cryptocurrency regulation. This also includes SIMBA Storage, a storage company for Bitcoin that has recently received a license for storage in the United Arab Emirates, as well as developing its activities in Switzerland and Lichtenstein, where it is working on obtaining licenses.

TRES DLT DMCC has also received a license to develop the company’s token utility, thereby making it possible to bring every company in the cryptocurrency industry closer to the legal sector. In an exciting turn of events, the TRES group has been able to do what no other establishment has done before, literally speaking. In what way?

On July 19, 2021, the Dubai Multi Commodities Centre (DMCC) announced that a new event had happened in the crypto world of Dubai. The TRES group has licenses to perform OTC (Over counter) trades in cryptocurrencies in the United Arab Emirates.

This recent achievement came off the back of the country’s long battle against crypto and heralded a new beginning for its financial sector. Thus, Dubai has joined the growing number of countries at peace with cryptocurrencies. This latest regulation is a significant achievement for the TRES group and is a testament to their reliability in the online crypto world. With this latest achievement, they have opened the way for other crypto exchanges to operate freely in the company, under regulation, of course.

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