• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Strict Cryptocurrency Regulations in the US: New Challenges and Trends

user avatar

by Giorgi Kostiuk

10 months ago


  1. Cryptocurrency Regulations in the US
  2. Liquidity Shift to Offshore Platforms
  3. Rise of Crypto-Friendly Jurisdictions

  4. The US federal government is intensifying its regulatory efforts in the cryptocurrency space, implementing stricter Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations. While designed to prevent illicit activities, these regulations may also drive liquidity and innovation towards more crypto-friendly jurisdictions.

    Cryptocurrency Regulations in the US

    The United States has taken a leading role in advancing technology and embracing cryptocurrencies; cities such as California, San Francisco, New York, and Miami have emerged as centers for crypto activities, where gatherings and conventions unite specialists, investors, and creative minds from various corners of the globe.

    However, navigating the regulatory environment in the US can be quite complex due to the rules established by each state. Businesses venturing into the cryptocurrency industry often encounter this hurdle.

    Liquidity Shift to Offshore Platforms

    Regulatory demands are increasing for cryptocurrency exchanges as US government agencies enforce AML and KYC rules, resulting in higher compliance expenses for companies based in the nation and prompting a few to look for friendlier regulatory settings elsewhere. Consequently, the demand for offshore exchanges has risen.

    In the last quarter, trading on offshore native platforms was higher than the combined trading volumes of developed and new onshore regulated exchanges.

    According to a report by Acuiti, offshore exchange demand rose to 49%, while onshore exchange demand lagged slightly behind at 41%. DeFi’s demand was 8%, while new onshore exchanges had a mere 3% demand pool.

    Rise of Crypto-Friendly Jurisdictions

    Nations such as Switzerland, Malta, and El Salvador have become known as hubs for crypto advancement. They offer more flexible regulations that support blockchain technology and digital finance growth than strict regulations like those in the US.

    These countries are attracting liquidity with tax benefits and smoother licensing procedures, alongside government-supported blockchain projects.

    For instance, Singapore has earned its reputation as a global financial hub, and its approach to cryptocurrency is friendly. The Monetary Authority of Singapore (MAS) has created a clear regulatory framework that allows institutional and retail investors to trade cryptocurrencies safely. This has made Singapore a prime location for crypto startups and blockchain research.

    The tightening of cryptocurrency regulations in the US may lead to a shift of liquidity to offshore exchanges and the growth of crypto-friendly jurisdictions. Countries with more favorable rules are becoming hubs for innovation and growth in blockchain and digital finance.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Bullish, the Crypto Exchange Backed by Peter Thiel, Prepares for IPO

chest

Bullish has filed for IPO, seeking to enter the public market and compete with major players.

user avatarGiorgi Kostiuk

USDC Use on Stellar and Its Impact on XLM Value

chest

Statistics show a rise in USDC transactions on Stellar, indicating growing utility that fuels speculation on XLM prices.

user avatarGiorgi Kostiuk

Litecoin Records New Open Interest at $761 Million. Is LTC Heading to $120?

chest

Litecoin has reached a new record open interest of $761 million, and 66.3% of addresses are in profit, raising hopes for a price increase to $120.

user avatarGiorgi Kostiuk

World Liberty Announces WLFI Token Launch Valued at $16 Billion

chest

WLFI token by World Liberty plans to debut with a $16 billion valuation, with significant backing from DT Marks DEFI LLC.

user avatarGiorgi Kostiuk

Impact of GENIUS Act: Trump Establishes Federal Stablecoin Guidelines

chest

President Trump has signed the GENIUS Act, establishing federal regulations for stablecoins and impacting the U.S. crypto landscape.

user avatarGiorgi Kostiuk

New Opportunities in the Meme Cryptocurrency Market: Troller Cat Gaining Popularity

chest

Exploring the rise of Troller Cat amid shifts in meme cryptocurrencies and the current status of Shiba Inu and Pepe.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.