- Increased government oversight and regulation
- Stricter KYC and AML requirements
- Impact on investor protection and market stability
Increased government oversight and regulation
In 2024, there is a growing trend of governments around the world implementing stricter regulations on cryptocurrencies. This includes measures to monitor and control the use of digital assets within their jurisdictions.
Stricter KYC and AML requirements
As part of the increased regulation, there are heightened Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements for cryptocurrency exchanges and other service providers. This means investors will need to undergo more rigorous identity verification processes and transaction monitoring.
Impact on investor protection and market stability
These new regulations aim to enhance investor protection and market stability by reducing the risk of fraud, money laundering, and other illicit activities within the cryptocurrency space. However, they may also lead to increased compliance costs and barriers to entry for smaller investors and businesses.