In 2023, US authorities will increase their surveillance of the crypto sector
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US authorities are now becoming increasingly interested in the future and economic impact of cryptocurrencies, 14 years after Bitcoin’s Genesis block caused a major disruption to financial services and other industries with the rise of blockchain technology.
A few days earlier, the Securities and Exchange Commission sent a sample letter to companies asking them to include information about recent developments in the cryptocurrency markets in their files. This includes their business descriptions, risk factors, and management’s discussion and analysis.
After the first agenda consultation with investors in five years, on Dec. 14, the Financial Accounting Standards Board reviewed new accounting and disclosure criteria for companies holding crypto assets in financial statements. The proposed guidelines are expected to be published in the first half of 2023.
Legal experts predict that many players in the cryptocurrency and financial services industries would be affected by the changes. According to Mark Kornfeld, a shareholder at Buchanan Ingersol and Rooney law firm, who specializes in securities and financial fraud, “it should have a multifaceted and ultimately significant macro and micro impact on financial markets in general and the crypto industry in particular.” He told Cointelegraph:
The Internal Revenue Service (IRS) is also reportedly more focused on cryptocurrency and has hired hundreds of new agents to work on digital assets and cybercrime. The IRS is trying to work alongside its own data scientists with cryptocurrency companies to create a “symbiotic bond” to fight financial crime.
“First, going forward, the Commission will actively monitor and conduct full regulatory audits of thousands (if not more) of companies operating in and around this arena, much like it did after the Madoff Ponzi scam was made public. Anyone in the market should realistically anticipate and prepare thoroughly for a significant increase in regulatory enforcement action by the Commission, as well as ongoing legal challenges to the Commission’s jurisdiction.
After the abrupt collapse of cryptocurrency exchange FTX in November last year, which paved the way for the upcoming government audit of the crypto market in 2023, lawmakers in the US are also under pressure to create a new legal framework for cryptocurrencies.
However, other people think that the long-term results will be favorable. The end result, according to Kornfeld, “should prove to be a more regulated and transparent climate, increased market stability, and much improved investor and consumer protection in an area that until recently has operated in a relatively secretive and opaque environment.”
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In 2023, US authorities will increase their surveillance of the crypto sector. Check all the news and articles from the latest business news updates.