What is an Authority?
An authority is a body or individual that exercises control, influence, or power over others. In the context of cryptocurrency, authorities are government entities and international organizations responsible for regulating financial systems and overseeing digital currency transactions. These include central banks (such as the US Federal Reserve), securities commissions (like FINRA in the United States) and other regulatory bodies like AML/KYC providers. Authorities also play a role in enforcing anti-money laundering laws to ensure that cryptocurrency activities comply with applicable regulations.
Why Do We Need Authorities?
Authorities exist to protect consumers from fraudulent activity related to digital currencies such as Bitcoin and Ethereum by providing oversight into how they operate within markets around the world. They also provide guidance on what constitutes legal ownership of cryptocurrencies so investors can make informed decisions when investing their funds into these assets. Finally, authorities work towards ensuring compliance with existing laws regarding money laundering which helps reduce crime associated with cryptosystems like blockchain technology used for online payments and transfers.
How Are Crypto Assets Regulated By Authorities?
Cryptocurrency assets are regulated by different national governments through legislation passed at either state or federal level depending on where you live in the world – this includes taxes imposed upon them too! Additionally there are international agencies such as FATF (Financial Action Task Force) who oversee global efforts against money laundering; these organisations set up standards which all countries must adhere to if they wish maintain good relations internationally & avoid sanctions being placed upon them financially speaking due their failure abide by those rulesets enforced globally across borders.. Generally speaking most jurisdictions require companies dealing directly crypto customers verify identities prior allowing any trading take place – this verification process falls under AML/KYC law usually overseen respective country’s Financial Intelligence Unit / Regulatory Commission etcetera…
