Crypto Policy is on The Way
Approximately a week ago, Terra Luna ($LUNA) ranked among the top 10 most valuable cryptocurrencies in the world. TeraUSD’s ($UST) value, a “stable coin,” was pegged 1:1 with the US Dollar. Both were developed by South Korean, Do Kwon. Stable coins are designed to be backed by cash or other assets to support the stable coins valuation. These assets are designed to allow traders to hold their wealth in cryptocurrency with reduced risk. Unfortunately for investors holding $UST, the backing and support failed miserably. These coins were connected due to an application that allowed the minting of $UST through the burning of $LUNA. Once the free fall began, $LUNA dropped from $85 to $.000035 within 72 hours. It’s stable coin counterpart, $UST, followed suit and dropped from $1 to $0.08. Millions of dollars were lost from investors. The term “stable coin” had completely lost it’s meaning. As panic ensued, many other stable coins became depegged from the US Dollar.
As the dust settles, many governments around the world are coming together to implement policy pertaining to stable coins among other kinds of cryptocurrency. Days after the crash, 44 countries met in El Salvador to discuss potential solutions to the wild west that is the crypto and NFT space. Cryptocurrency regulation is becoming a buzz phrase for politicians around the world. It is only a matter of time before strict policy is implemented.
At this point, regulation of cryptocurrency and other DeFi aspects is inevitable. Over the next months and years, business owners within this space must be able to swiftly adapt to the changes that our coming. More rules and regulations mean more things that business owners have to worry about. Lucky for them, CryptoArmor is here to help. We offer a wide variety of Privacy and Compliance services including a vCISO service that will aid your adaptation into the changes that are coming, keeping your company compliant and secure.
Contact CryptoArmor here to learn more.