How to Cope with Evolving Regulations

As can be seen from continuous regulatory updates around the world, the evolving landscape of cryptocurrency regulation is underscoring the critical importance of identity verification within the digital asset ecosystem. Recent legal developments, particularly in the United States, highlight the increasing need for robust Know Your Customer (KYC) and Anti-Money Laundering (AML) measures to ensure compliance, protect users, and foster trust in the crypto industry as it grows and develops to meet new needs and markets.

Implementation of crypto regulations is seen by most good actors as a positive; users and companies alike are protected from fraudsters and bots. As long as regulations are reasonable and clear, their implementation can lead to a thriving crypto ecosystem. However, the clarity of regulations can often be found wanting. A notable example of this can be seen in the U.S. Court of Appeals for the Third Circuit's directive to the Securities and Exchange Commission (SEC) this week, indicating that the SEC’s rejection of Coinbase's request for specific crypto regulations was unreasonable, and that the SEC should provide a more detailed explanation to meet Coinbase’s request. This decision highlights how the industry is seeking clear regulatory guidelines for the protections and fostering of good business that they bring, and the judiciary system's recognition of the need for transparency in regulatory processes. The only one seemingly not on board in this case has been the SEC.

The SEC's stringent stance and unwillingness to rule on crypto regulations over the past years has led to significant actions that are detrimental to the crypto industry, such as eToro's settlement to cease offering nearly all cryptocurrencies to U.S. customers and pay a $1.5 million penalty for operating as an unregistered broker and clearing agency. This type of enforcement underscores the SEC's resolution to applying existing securities laws to digital assets, even when there might be questions about their suitability, which has on occasion led to the SEC overstepping its remit. Others in the crypto industry have sought legal action, with companies like Crypto.com filing lawsuits against the SEC, alleging legal overreach and inconsistent application of regulations.

Disputes and confusion in the industry highlight the regulatory uncertainty and the pressing need for clear guidelines that balance fostering innovation with investor protection. Regulation is required, but the question is what it should look like and how it should be enforced. This all contributes to the constant rapid pace of regulatory changes in the crypto world, which can be a nightmare for companies - both new and old - to stay on top of without spending a lot of time and expense on compliance, taking valuable resources away from the services and projects that they would rather be focusing on.

Regardless of what the exact details of regulations are or change to be, one thing is clear: there is no doubt that they will involve comprehensive identity verification methods. Without KYC and AML, no real regulation can take place, and this goes to show that identity verification is at the core of the future of crypto. Recognising the need for this, and deciding to do something about it, Blockpass has developed solutions which provide a comprehensive suite of compliance measures, including KYC, AML, KYB and more, making it perfectly positioned to assist crypto businesses in meeting regulatory demands. On top of this, Blockpass continuously monitors the regulatory landscape, and develops solutions to meet incoming regulatory demands, removing the burden of monitoring and adhering to the continuously evolving compliance landscape from crypto businesses’ shoulders.

By offering efficient and cost-effective KYC, KYB, and AML services, Blockpass empowers platforms to automate the compliance process, eradicate fraud, and onboard users globally, safe in the knowledge that they are real, legitimate people. This approach not only ensures adherence to current regulations, but also prepares businesses for future regulatory developments, fostering a secure and compliant crypto ecosystem.

About Blockpass

Ditch tedious onboarding and say hello to seamless compliance with Blockpass, the ultimate turnkey solution for KYC, KYB, and AML. Experience the market's most efficient and cost-effective compliance suite, built by seasoned compliance veterans and crypto-natives. Automate compliance processes, eradicate fraud, and onboard globally with confidence. Verify businesses worldwide, launch bank-grade verification for your organization, and instantly activate compliant KYC/AML for DeFi, exchanges, token launchpads, NFT mintings and beyond. Through Blockpass’ decentralized network of a million pre-verified crypto-enthusiasts and a thousand pre-verified businesses, you can expand your reach effortlessly. Leverage Advanced KYC BotTM for intelligent remediation, On-Chain KYC® for data-free anonymity, and Unhosted Wallet KYCTM to meet Crypto Travel Rule regulations. Join Animoca Brands, Cardano, Polygon, Chainlink, Delta Exchange, National Geographic, TinyTap, Seedify, ChainGPT, Iskra and many more in partnering with Blockpass for compliance you can trust, growth you can accelerate and an experience you can enjoy. Join the cutting edge of secure, streamlined onboardings.

Learn more and engage the Blockpass team via the following:

Website: http://www.blockpass.org

Email: [email protected]