Cryptoasset trades are expected to be subject to official reporting requirements as soon as within three years, with the United States likely being the first country to introduce such regulations on trading platforms, a new survey conducted by business analytics firm IHS Markit in October this year has found.
According to the survey, which covered 90 respondents at banks, asset management firms, brokers, and various other financial and non-financial institutions, a majority of respondents said they expect reporting requirements related to “post-trade transactions” to be introduced within the next three years.
By post-trade transactions reporting, the survey is referring to trades made on centralized exchanges and other marketplaces for spot cryptoassets. Further, the expected reporting requirement is likely to apply to exchange and marketplace operators, and not individual traders.
Asked which jurisdictions are most likely to introduce this type of requirement, more than half of those who expected the requirement to be introduced said the US is the most likely country to introduce it first.
That was followed by the European Union, the United Kingdom, Switzerland, and Singapore as the next most likely places to introduce reporting requirements, the survey found.
Commenting on the findings, Ronen Kertis, Head of Global Regulatory Reporting Solutions at IHS Markit, said that the findings illustrate a degree of acceptance by companies in the crypto industry that more regulatory oversight is coming.
“The speed with which transaction reporting is expected to be required for this relatively new asset class demonstrates that the market accepts both the necessity of and value in regulatory oversight of this type,” Kertis said.
He added that this suggests that companies operating in the crypto space “need to maintain a close watch” on signals from regulators as the market continues to evolve. Moreover, Kertis also commended some companies in the industry who he said have already chosen to report their crypto trades even though it is not yet required.
“Cryptocurrencies remain largely unregulated around the world but if their importance continues to grow at pace they are sure to attract regulatory scrutiny,” a report that outlined the survey’s findings concluded by saying about the nascent industry.
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