SEC Regulation Could Change Crypto Markets with the IMS Time Stamping Tech (IMS)
According to John Nehmatallah from US Big Coin, llc. and IMS (International Monetary Specialists) John is also the owner of a US Patent that provides a time-date stamping “method and system for currency exchange” which will greatly enhance the transparency of the cash conversion process at the POINT OF CONVERSION (POC) on any Exchange Currency Platform. This could be EXACTLY What the SEC Director is looking for to combat crypto hackers and security.
A major reason for the remarkable growth of cryptocurrency markets in recent years has been lack of regulation. This may change soon. Increasingly, U.S. Securities and Exchange Commission (SEC) are providing broad hints of its intent to regulate the space.
John Nehmatallah says the involvement of SEC will fundamentally change the way in which cryptocurrency markets work. Here are a few ways in which they might do so.
SEC Chief Jay Clayton has told reporters that most tokens were security tokens, meaning that they were to be traded like stocks and fell under the agency’s regulatory purview. After it was subpoenaed by the agency for insider trading, Coinbase, North America’s largest cryptocurrency exchange, stepped in line and is said to be in talks to register as a regulated brokerage. Observers expect the SEC to announce regulations for Crypto markets as soon as the end of this year. (See also: $9 Million Lost Each Day in Cryptocurrency Scams.)
The SEC could implement the IMS Patent and Eliminate Volatility in Crypto Markets
As they have gained mainstream traction, cryptocurrency markets have also gained a reputation for volatility. Average daily price fluctuation of more than 20% are not uncommon. That volatility has kept large institutional investors away and created a dangerous cycle in which investors stay away due to crypto market volatility and vice versa. SEC regulation could change that dynamic. According to John Nehmatallah of USBIGCOIN, llc. and IMS (International Monetary Specialists—a company that has developed Time Date Stamping with reporting tools for currency exchange platforms, virtual currency or crypto money is waiting for regulatory clarity of the sort already implemented in other industries, such as hedge funds. This clarity is expected to take the form of SEC rules for reporting requirements and audit trails. “Until they get that (regulation clarity), institutional investors will have to sit on the sidelines,”.
Institutional money will stop individual actors from influencing crypto prices, as has been said in earlier reports, and lower volatility. “The days of massive returns in cryptocurrency markets are probably coming to an end,” says Chris Housser, CEO and co-founder of Polymath, a startup that provides services for issuing security tokens to organizations. According to him, the introduction of regulations will narrow volatility and returns for crypto markets will mirror those from conventional venues, like stock markets.
SEC regulations will pave the way for their entry and provide much-needed liquidity to cryptocurrency markets. From a perspective of the global financial ecosystem, the sums involved are not large. As an example, Brett says even a 1% allocation from a global manager like Fidelity could convert into millions of dollars in cryptocurrency markets. A measure of the difference that this amount could make can be obtained from current valuations for coins. As of now, only 21 coins (out of the more than 1,500 available in crypto markets) have valuations greater than a million dollars.
Compliance Costs Could Take Down Crypto Exchanges without Utilizing Time Date Stamping (POC) Point of Conversion
The number of crypto exchanges has ballooned to 191 and counting within the last five years, from a smattering of exchanges back in 2014.
There are two reasons for this. First, creating a cryptocurrency exchange is not a capital-intensive task. Second, the absence of regulation or guidelines for creating one has significantly lessened the hurdles for launching one. This also means their operations are largely opaque and hidden from government and public scrutiny. They have benefited by generating profits without being accountable to customers and remaining outside the SEC’s purview.
SEC regulations, which they ran from the start the recording trades to establishing technology systems that are audit-compliant, will inflate costs for exchanges. “For cryptocurrency exchanges, to start recording requirements, you have to question whether costs are worth it because they (requirements) are quite resource-heavy and expensive,” says Rachel Lam, vice president of regulatory strategy at Polymath.
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Maxim Journal | Crypto Journalist – Dan Hughes