3 things to watch out for in cryptocurrencies in 2024

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As the cryptocurrency industry expands, the community is always on the lookout for important events that could impact the ecosystem’s growth trajectory. On the face of it, 2024 happens to be all of those things.

One such event is the development and implementation of clear cryptocurrency regulations in major regions such as the European Union. The crypto community is also watching the approval of multiple Ethereum swap products and the jailing of FTX founder and former CEO Sam Bankman-Fried (SBF), who was responsible for one of the largest financial scams in modern history.

timeEuropean MiCA implementation

After years of the cryptocurrency industry tirelessly demanding clear policy, the European Union has released the Markets in Crypto-Assets (MiCA) regulations. The framework will set out strict rules to prevent mass collapses of cryptocurrency companies, as happened last year.

After two years of platform construction, the European Commission launched MiCA in September 2020. These rules are intended to regulate the issuance and provision of cryptocurrency services while protecting the industry from fraudulent activities.

In April, the EU Parliament voted 517 to 38 in favor of MiCA, while the 27-member EU Council unanimously approved the new licensing policy in May.

The regulations will be implemented in two phases: stablecoin rules will come into effect on June 30, 2024, and remaining rules will be implemented on December 30, 2024. The implementation of the new regulations may encourage other regions to enact clear laws for the cryptocurrency industry.

approve Ethereum ETF

While the crypto industry expects several Bitcoin spot exchange-traded funds (ETFs) to be approved in January, regulators are also expected to approve an Ethereum ETF between February and May.

A number of companies, including Ark Invest/21Shares, VanEck, Hashdex, Invesco/Galaxy Digital and Grayscale Investments, have filed applications with the U.S. Securities and Exchange Commission (SEC) to launch spot and hybrid ETFs.

The approval of these products could give investors broader access to the Ethereum ecosystem, creating opportunities for greater capital inflows.

SentencingSBF

Another important thing to be excited about in 2024 is the expected sentencing of SBF in March. After about 4 hours of deliberation, the jury found the cryptocurrency tycoon guilty of 7 counts, including wire fraud account fraud, securities fraud, and commodity fraud. conspiracy and money laundering conspiracy.

SBF commingled user assets and defrauded investors of billions of dollars while promoting its cryptocurrency empire as a safe haven for its customers. FTX collapsed in November 2022, triggering a chain reaction that led to the collapse of other companies. SBF faces a maximum penalty of 115 years in prison while the exchange seeks a suitable bankruptcy exit package.