El Salvador and Bitcoin Adoption: Between the Optimism and Skepticism
- El Salvador became the first country in the world to make the biggest cryptocurrency by market cap legal tender.
El Salvador and its President Nayib Bukele have been a trending topic among the crypto community due to the country’s adoption of Bitcoin (BTC) as legal tender.
Although the measure has been praised by cryptocurrency advocates globally and key industry players, others are skeptical regarding such a manoeuvre made by the Central American nation with a population of around 6.54 million.
But first, let’s dig into the recent developments about how Bitcoin became legal tender in El Salvador. In June, the country, which uses the US dollar as the go-to fiat, officially recognized BTC as a legal tender as the country’s legislature passed a bill with a ‘supermajority’.
In total, 62 legislative members out of a total of 84 voted in have favor of the bill, while 19 members opposed and three abstained.
Bitcoin - El Salvador Timeline
The day after the bill was passed, Bukele signed the so-called Bitcoin law. Afterwards, the Salvadoran President deployed a strain of announcements related to the development of the cryptocurrency industry within the nation. In fact, that same day, Bukele announced that LaGeo SV, the country’s geothermal electrical company, will be building a plan to establish geothermal facilities for Bitcoin mining in the wake of making the crypto officially a legal tender.
“I’ve just instructed the president of LaGeoSV (our state-owned geothermal electric company) to put up a plan to offer facilities for Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos,” Bukele wrote in a tweet at that time, adding that he expects the crypto industry to evolve ‘fast.’
After Bitcoin became a legal tender officially in El Salvador, President Bukele announced an airdrop of $30 worth of Bitcoins to every adult citizen in the Latin American country. First but, they have to download the El Salvador government’s official Bitcoin wallet application, Chivo.
As the popularity of El Salvador’s Bitcoin law skyrocketed across the world, even trending in social media platforms and Google searches because it set a precedent in some way from an economic and a political point of view, Bukele did not stop in making manoeuvres to strengthen its pro-crypto stance.
Government Buying BTC
In fact, he took it to a government level by revealing early in September that El Salvador holds 400 Bitcoins, and he keeps increasing BTC holdings, as the crypto market has been plummeting, making the well-known ‘buy the dips’ investor manoeuvre.
About this matter, Javier Pastor, Sales Director at Bit2Me, a Spain-based crypto exchange, told Finance Magnates: “In general, governments generate mistrust, and the decisions they make are viewed with suspicion and skepticism. In this case, we have to separate the strategy of introducing Bitcoin as a new legal tender and what that means on a financial level, not only for El Salvador but globally with new money outside the unique system that had operated during the last century. Fiat! It is a challenge but also an international positioning that introduces a factor unknown until now. Money that does not depend on the monetary sovereignty of any country, money based on mathematics and cryptography.”
In addition, Pastor pointed out that Bitcoin cannot be viewed as a synonym of corruption or the reason for the increasing corruption of a country. “We must not fall into the trap that many will be preparing: ‘Look at the failure of Bitcoin as legal tender in El Salvador, corruption continues or has increased.’ I insist, Bitcoin is not corrupt, but in the hands of adulterers, any kind of money can be open to criticism of that model,” he added.
Bukele and Bitcoin Law: A Populist Maneuver?
But, Bitcoin adoption in El Salvador came accompanied by controversies surrounding its feasibility to guarantee economic stability for the country, as of 2020, the Gross Domestic Product (GDP) in El Salvador was worth $24.64 billion, and the real political reasons behind such a manoeuvre. Bukele has been under scrutiny because the opposition has qualified him as a populist and even as a ‘dictator.’
This latest adjective was granted because the Congress of El Salvador, dominated mostly by Bukele’s New Ideas Party with 56 out of the 84 seats in the Legislative Assembly, voted in May to remove the magistrates of the Supreme Court’s constitutional chamber, sparking concerns over a sole concentration of the government power onto Bukele.
Also, a few weeks ago, the Supreme Court opened the doors for Bukele to be reelected by issuing an order, asking the Supreme Electoral Tribunal to allow a president to seek reelection.
In addition, nationwide protests have arisen since BTC became a legal tender in the country, with some people holding signs saying ‘democracy is not for sale.’ A recent survey published by Sherlock Communications revealed that 54% of Salvadorans do not know about Bitcoin or other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term and how they work.
Some Salvadorans responded in the study that access to more friendly-user platforms would help them get a clearer understanding of the cryptocurrency sphere.
The Future of Bitcoin as Legal Tender in El Salvador
Moreover, the International Monetary Fund (IMF) issued a blog post in July addressing the matter of adopting cryptos as national currencies, and as expected, it had a cautious approach about the issue: “Cryptoassets are unlikely to catch on in countries with stable inflation and exchange rates, and credible institutions. Households and businesses would have very little incentive to price or save in parallel crypto-assets such as Bitcoin, even if it were given legal tender or currency status. Their value is just too volatile and unrelated to the real economy.”
Still, well-known Bitcoin advocates like Dan Held, who is also the Director of Growth Marketing at Kraken, a major US-based crypto exchange, shared with Finance Magnates his optimistic forecast for the crypto industry in the years ahead after El Salvador adopted BTC as a legal tender: “El Salvador’s adoption of Bitcoin is an interesting monetary move. It’s very possible we’ll see a different approach by governments in the coming years, geared more towards holding Bitcoin as a reserve asset.”
In case that Bitcoin law becomes a success in El Salvador, Pastor told Finance Magnates that it would have a very positive impact on the industry: “Regardless of whether or not other countries copy the version of the Bitcoin Law, I hope that during this time, this measure will wake up many people and begin to consider the use of Bitcoin as an alternative to fiat money. (…) The success of this technology will be the choice of humanity, of the citizens of any country in the world, not the imposition or Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term that makes Bitcoin a legal tender by the nations.”
El Salvador and its President Nayib Bukele have been a trending topic among the crypto community due to the country’s adoption of Bitcoin (BTC) as legal tender.
Although the measure has been praised by cryptocurrency advocates globally and key industry players, others are skeptical regarding such a manoeuvre made by the Central American nation with a population of around 6.54 million.
But first, let’s dig into the recent developments about how Bitcoin became legal tender in El Salvador. In June, the country, which uses the US dollar as the go-to fiat, officially recognized BTC as a legal tender as the country’s legislature passed a bill with a ‘supermajority’.
In total, 62 legislative members out of a total of 84 voted in have favor of the bill, while 19 members opposed and three abstained.
Bitcoin - El Salvador Timeline
The day after the bill was passed, Bukele signed the so-called Bitcoin law. Afterwards, the Salvadoran President deployed a strain of announcements related to the development of the cryptocurrency industry within the nation. In fact, that same day, Bukele announced that LaGeo SV, the country’s geothermal electrical company, will be building a plan to establish geothermal facilities for Bitcoin mining in the wake of making the crypto officially a legal tender.
“I’ve just instructed the president of LaGeoSV (our state-owned geothermal electric company) to put up a plan to offer facilities for Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos,” Bukele wrote in a tweet at that time, adding that he expects the crypto industry to evolve ‘fast.’
After Bitcoin became a legal tender officially in El Salvador, President Bukele announced an airdrop of $30 worth of Bitcoins to every adult citizen in the Latin American country. First but, they have to download the El Salvador government’s official Bitcoin wallet application, Chivo.
As the popularity of El Salvador’s Bitcoin law skyrocketed across the world, even trending in social media platforms and Google searches because it set a precedent in some way from an economic and a political point of view, Bukele did not stop in making manoeuvres to strengthen its pro-crypto stance.
Government Buying BTC
In fact, he took it to a government level by revealing early in September that El Salvador holds 400 Bitcoins, and he keeps increasing BTC holdings, as the crypto market has been plummeting, making the well-known ‘buy the dips’ investor manoeuvre.
About this matter, Javier Pastor, Sales Director at Bit2Me, a Spain-based crypto exchange, told Finance Magnates: “In general, governments generate mistrust, and the decisions they make are viewed with suspicion and skepticism. In this case, we have to separate the strategy of introducing Bitcoin as a new legal tender and what that means on a financial level, not only for El Salvador but globally with new money outside the unique system that had operated during the last century. Fiat! It is a challenge but also an international positioning that introduces a factor unknown until now. Money that does not depend on the monetary sovereignty of any country, money based on mathematics and cryptography.”
In addition, Pastor pointed out that Bitcoin cannot be viewed as a synonym of corruption or the reason for the increasing corruption of a country. “We must not fall into the trap that many will be preparing: ‘Look at the failure of Bitcoin as legal tender in El Salvador, corruption continues or has increased.’ I insist, Bitcoin is not corrupt, but in the hands of adulterers, any kind of money can be open to criticism of that model,” he added.
Bukele and Bitcoin Law: A Populist Maneuver?
But, Bitcoin adoption in El Salvador came accompanied by controversies surrounding its feasibility to guarantee economic stability for the country, as of 2020, the Gross Domestic Product (GDP) in El Salvador was worth $24.64 billion, and the real political reasons behind such a manoeuvre. Bukele has been under scrutiny because the opposition has qualified him as a populist and even as a ‘dictator.’
This latest adjective was granted because the Congress of El Salvador, dominated mostly by Bukele’s New Ideas Party with 56 out of the 84 seats in the Legislative Assembly, voted in May to remove the magistrates of the Supreme Court’s constitutional chamber, sparking concerns over a sole concentration of the government power onto Bukele.
Also, a few weeks ago, the Supreme Court opened the doors for Bukele to be reelected by issuing an order, asking the Supreme Electoral Tribunal to allow a president to seek reelection.
In addition, nationwide protests have arisen since BTC became a legal tender in the country, with some people holding signs saying ‘democracy is not for sale.’ A recent survey published by Sherlock Communications revealed that 54% of Salvadorans do not know about Bitcoin or other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term and how they work.
Some Salvadorans responded in the study that access to more friendly-user platforms would help them get a clearer understanding of the cryptocurrency sphere.
The Future of Bitcoin as Legal Tender in El Salvador
Moreover, the International Monetary Fund (IMF) issued a blog post in July addressing the matter of adopting cryptos as national currencies, and as expected, it had a cautious approach about the issue: “Cryptoassets are unlikely to catch on in countries with stable inflation and exchange rates, and credible institutions. Households and businesses would have very little incentive to price or save in parallel crypto-assets such as Bitcoin, even if it were given legal tender or currency status. Their value is just too volatile and unrelated to the real economy.”
Still, well-known Bitcoin advocates like Dan Held, who is also the Director of Growth Marketing at Kraken, a major US-based crypto exchange, shared with Finance Magnates his optimistic forecast for the crypto industry in the years ahead after El Salvador adopted BTC as a legal tender: “El Salvador’s adoption of Bitcoin is an interesting monetary move. It’s very possible we’ll see a different approach by governments in the coming years, geared more towards holding Bitcoin as a reserve asset.”
In case that Bitcoin law becomes a success in El Salvador, Pastor told Finance Magnates that it would have a very positive impact on the industry: “Regardless of whether or not other countries copy the version of the Bitcoin Law, I hope that during this time, this measure will wake up many people and begin to consider the use of Bitcoin as an alternative to fiat money. (…) The success of this technology will be the choice of humanity, of the citizens of any country in the world, not the imposition or Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term that makes Bitcoin a legal tender by the nations.”