While testifying before the US Senate Banking Committee in 2021, US Securities and Exchange Commission (SEC) Chairman Gary Gensler hinted at the crypto industry as being widely unregulated and even used the term “Wild West” to describe it.
Of course, for the well-informed, nothing could be further from the truth.
In this article, we provide evidence that this industry is - in fact - highly regulated and that crypto companies are actually the ones calling for further regulatory clarity and guidance, and for a “level playing field” to be established for proponents.
- Due to misinformation, many are led to believe that lawlessness abound in the crypto space.
- Crypto regulations are already established in various jurisdictions around the world.
- As a Singapore-based fintech company, Cake DeFi is in compliance with existing laws in the city state. We have recently acquired an operating license as well in Lithuania.
Calling crypto the "Wild West" is a farce
Perhaps in response to how SEC Chairman Gensler depicted the crypto space, Ripple CEO Brad Garlinghouse stated in a previous tweet that, “Calling crypto the wild west is a farce.”
This stems from the fact that, as he explained separately during an interview, “Crypto is regulated. It’s regulated by the CFTC. It’s regulated by other government entities, whether it’s FinCEN, the US (Department of) Treasury…so, when I hear the SEC come forward and say that this is the wild, wild west and that it’s not regulated…well, it's not entirely true.”
And that is, indeed, the problem: due to misinformation, many are led to believe that lawlessness abound in the crypto space. It does not. And though it’s true that every country has a different approach when it comes to regulating cryptos, the fact remains that crypto regulations and regulators do exist - and that crypto companies must adhere to and comply with them accordingly.
Global crypto regulations at a glance
So, what crypto regulations exist and must be adhered to today? Which authorities must crypto companies comply with? Generally, it all depends on location. For a quick glance on which countries or jurisdictions require a license to operate, check out the map below!
Our view on regulations
With crypto regulations already being established in major jurisdictions around the world and many crypto companies showing willingness to work with authorities, it becomes even more undeniable: this industry completely understands the extreme importance of rules.
In fact, given the mathematical components or aspects of decentralized ledger technology, it can be said that this industry thrives in rules. Hence, abiding by rules or regulations is second nature to most crypto companies.
At Cake DeFi, this could not be more true.
As a Singapore-based fintech company, we comply with local authorities and operate under an exemption pursuant to the Payment Services (Exemption for Specified Period) Regulations 2019. Our MAS license application is also pending approval.
Recently, we also secured an operating license from the Registrar of Legal Entities of Lithuania. With this license, we are authorized to conduct services in exchange for digital currencies, and provide and administer crypto custodial wallets in Lithuania.
Furthermore, we adhere to Travel Rule requirements and are a proud member of TRUST (Travel Rule Universal Solution Technology (TRUST) - a global, industry-driven solution designed to comply with the Travel Rule.
If you want to take advantage of the benefits that we offer as a highly compliant and transparent fintech company, you may click here to register an account with us.
You will get a “welcome bonus” of US$30 worth of DFI when you register successfully and make a deposit of US$50 or more, and allocate the amount for at least 28 days into either our Lending, Staking Freezer or Liquidity Mining Freezer service.
So, what are you waiting for? Sign-up now and generate passive income in secure and transparent manner.