Digital currencies or cryptocurrencies were created as a rebellion against the established financial regimens. Cryptocurrencies work on Blockchain principle and are essentially Decentralized finance, and any idea of regulating the cryptocurrency goes against the basics of Digital currencies. However, of late, the myth that Blockchain cannot be hacked is getting broken, and several scams and hacks have led to bringing the crypto sector under some form of regulation. Many nations are implementing strict cryptocurrency rules, and the G20 Cryptocurrency regulation is also around the corner.
The experts opine that any regulation by G20 nations will adversely affect the crypto sector. The crypto sector is not keen to put itself under some form of law. Here are some top crypto assets affected by the G20 Summit 2022 regulation.
Crypto Sector Under G20 Scrutiny
Representatives from the G20 nations are closely studying a report titled Crypto-Asset Reporting Framework and Amendments to the Common Reporting Standard. The exhaustive report envisages framing rules and a commentary on the Crypto-Asset Reporting Framework (CARF). The report also seeks to standardize reporting of tax information on the Crypto Sector.
The number one crypto asset concerning total market value is under a scanner for its extreme volatility and the possibility of investors losing their money.
Shiba Inu & Dogecoin
Both the canine-based meme and joke coin are highly volatile. Dogecoin values are even affected by statements of Elon Musk, the CEO of Tesla. DOGE lost a significant portion of its value in the excellent crypto mayhem in June 2021.
The Merge was touted as the revolutionary upgrade which changed the validation process from Proof Of Work to Proof of Stake and, in the process, saved an enormous amount of energy. Many experts had predicted that Ethereum values would rise after the Merge software update. However, the opposite happened, and regulators are giving a closer look at the number two crypto asset.
The villain in the excellent crypto collapse earlier this year, Terra Classic, is under intense regulatory scrutiny.
Several outages have hit the Solana network recently and could be a candidate for regulatory pressures.
Ripple XRP is already involved in legal wrangling with SEC. Given the vast trading community behind XRP, regulators could be looking into the project.