Summary
- Increased government oversight and regulation of cryptocurrency transactions
- Stricter KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements
- Regulation of decentralized finance (DeFi) platforms
- Tax reporting and compliance for cryptocurrency transactions
Increased Government Oversight and Regulation
In 2024, governments around the world are expected to increase their oversight and regulation of cryptocurrency transactions. This may include licensing requirements for cryptocurrency exchanges and stricter enforcement of existing financial regulations.
Stricter KYC and AML Requirements
To combat illicit activities such as money laundering and terrorist financing, regulators are likely to impose stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements on cryptocurrency exchanges and other service providers. This may involve enhanced due diligence procedures for customer onboarding and transaction monitoring.
Regulation of Decentralized Finance (DeFi) Platforms
As decentralized finance (DeFi) continues to gain popularity, regulators are expected to focus on bringing these platforms under regulatory oversight. This may involve licensing requirements, compliance with financial regulations, and measures to ensure consumer protection.
Tax Reporting and Compliance
Cryptocurrency users and businesses are likely to face increased scrutiny and enforcement of tax reporting and compliance requirements. This includes reporting cryptocurrency transactions to tax authorities and ensuring compliance with tax laws related to capital gains, income, and other taxable events.