From Europe to Asia, every country is strengthening its digital currency laws in 2023 and making provisions for heavy penalties. Regulators across the world are busy either making new statutes or punishing the bad actors of cryptocurrency in 2023. The world’s first cryptocurrency industry Comprehensive laws are approved by the European Union. They have taken steps towards cryptocurrency market legislation.
But among all, the US has been ranked top in the list for taking legal actions against the cryptocurrency industry for bad cryptocurrency practices and frauds this year. According to the reports CNBC, the US is the pacesetter in cryptocurrency law enforcement actions.
This year, the SEC has taken strict legal action against Binance, the world’s largest Cryptocurrency while imposing a penalty of $4bn for the violation of the Securities law violation. The CEO of the Company, Changpeng Zhao was also accused of blending the customer with Company assets.
The SEC also sued Coinbase for dealing in illegal Securities. These two lawsuits in the first half of the year against the biggest cryptocurrency Exchange show the strictness and vigilance of the enforcement authorities.
Sam Bankman Fried’s cryptocurrency Empire has collapsed, the prosecutor alleged him guilty of doing fraud with Clients and Investors and stealing Billions from them which turned his FTX into a bankrupt Company. One of the famous former prosecutors of the US Justice Department’s Securities and Commodities Fraud section, ‘Renato Mariotte’ stated that it’s essential to take strict legal action like FTX in certain cases.
Main Cryptocurrency regulators in Us
The regulatory Bodies of the US such as the SEC, the Department of Justice and the Treasury’s ( Financial Crimes Enforcement Network) FinCen and (Commodity Futures Trading Commission) CFTC are the main actors behind the enforcement of the strict Crypto measures. They worked alongside the police and played a major role in bringing the US to the top of the regulator’s list. However such strict actions against major corporate agencies have been criticised widely due to the absence of a comprehensive legislative framework on cryptocurrency.
The CEO of Coinbase, Brian Armstrong has also given the statement that there is a lack of clarity in cryptocurrency Regulation and the approach of enforcement is also not satisfactory. With time, there is a need for a regulatory framework. The main work of these Regulatory bodies is to provide guidance to the industry and how Cryptocurrencies are to be offered, sold and traded according to Richard Levin.
Prosecutor Maroitte said that we have to move to litigation for the settlement of cryptocurrency issues due to a lack of Comprehensive legislation or regulation.
By the end of the Year 2014, the SEC had taken more than 200 legal actions for the enforcement of cryptocurrency and the year 2023 is highlighted for taking action against most of the crypto-related misconduct which includes cases such as illegal celebrity touting and unregistered Crypto assets.
Lawmakers in the US have taken the step and introduced the digital assist bill this year but as of now, there is no clearer regulation or specific law for the Crypto Industry.
Notwithstanding that there is the absence of crypto-specific legislation, the US has tightened its grip in the recent few years.
In response to these legal actions, the crypto companies have threatened to relocate their operations outside the US.