The SEC and BlockFi reached an agreement, which allowed for regulation. But it’s also forcing other companies to reevaluate the terms of their crypto loan offers. Following the agreement with rival BookFi Link stopped offering interest on new cryptocurrency deposits.
According to Mr. Khazaradze, the CEO by auroxDecentralized services like AAVE and Compound still provide attractive alternatives, but centralized companies will likely need to figure out how to legally register with authorities before offering crypto loans.
We can anticipate in the near future that centralized cryptocurrency lending companies will have to adjust their offerings in accordance with local market regulators. Any cryptocurrency business can provide such products as long as it adheres to applicable lending and securities laws and regulations.
However, these companies risk having to contend with a regulatory approach that could jeopardize their operations.
Some countries are ahead of the regulation of cryptocurrency lending
While the United States consistently dominates the global financial markets, the authorities are late when it comes to regulating cryptocurrencies.
Some countries like Singapore, Switzerland and the UK have implemented their own legislative framework for cryptocurrencies.
However, as legislation varies from country to country, it remains complex for any business working on digital assets.
The compliance officer TrustToken, Teresa Anaya said that since digital assets are decentralized and global in nature, a world standards agency it should emerge in order to develop a risk assessment framework that any nation could adopt.
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