The new world of Digit asset (cryptocurrency) has witnessed a massive growth in various part of the world starting from the European nations to Asia and down to the Africa continent.
The digital currency which is designed to tackle the issue of third party and physical transactions is structured in a decentralised and centralised Exchange platform and monitored with a technology called “Cryptography”.
What is Decentralised and centralised platform:
Decentralised exchange (DEX) is an exchange platform that allows peer-to-peer (P2P) transactions from ones private wallet without going through any intermediary while trading. It also make use of an automated market maker protocols to determine the price of an asset without a centralised body orchestrating trade, that is, there’s no room for market manipulation or intermediary charges.
While centralised Exchange also know as “CEX” allows intermediary between a buyer and a seller and make money through commissions and transaction fees. And the popular ones are, Binance, Kucoin and coinbase among others. Additionally, the centralised Exchange is said to be more reliable and it operate using an order book system, which means that buy and sell orders are listed and sorted by the intended buy or sell price.
With continuous support the digital currency enjoyed from the Lawmakers and stakeholders in the society , it has placed it at the peak in the financial Sector which must be regulated and monitored for the general public interest.
To start with the recent and rapid fall of crypto friendly bank, Silicon Valley Bank, signature bank,silvergate among others , attention was drawn to the need for strict regulation and monitoring in the crypto sector by lawmakers and regulatory bodies,
The continuous collapse has affected the stock market negatively and plunged down the prices of digital asset like the Bitcoin and Ethereum
In some cases, authorities and regulatory bodies have revisited the set down laws guarding the digital Asset as a mean to protect the general public interest.
New policy were set aside, and a notable example is the policy set for the new acquisition of the collapsed Silicon Valley bank.
Some governmental officials believed that the recent and continuous collapse of crypto friendly bank and crypto exchange were purposely orchestrated by the founders and in other to protect users and financial market, some were arrested for fraud related charges.
In conclusion, will the new regulation be helpful in the crypto world as pose by the lawmakers and regulatory bodies? because there is high tendency entrepreneurs intending to venture into Exchange business will be limited and censured, and with the high level of corruption in government positions, linsence may depend on favouritism.