With Facebook entering thecryptocurrency space, there were swift and critical responses from thepoliticians in Europe and the United States.

Libra is all set to be launchednext year. A consortium of 28 companies,which will be governing the digital currency has been formed for Libra.

Cryptocurrency regulation will bemoving a step ahead during the V20 summit where representatives from severalcountries will be assessing the new course of legal action as proposed by theInternational Financial Action Task Force (FATF).

Takemoto stated, “The VASPindustry recognizes the importance of clear regulation in preventing financialcrime and mitigating corruption.”

While it is not clear about whichFederal Agency should be regulating the cryptocurrency market, some regulationwill come in to force very soon. Governments will not be willing to permit the dominance of the Facebookcoin, and the governments are well aware that the digital tokens will bepresenting a difficulty for the lawmakers.

While a government representative recently required that Facebook stops its processes, it is not realistic for Facebook to be doing it.

Regulators are looking to ensurethat new products would not pose a systematic risk, which are for good causesmainly. However, the timeline forregulation did not keep up with the pace of advancements in technology.

While there are lots of commentsabout Facebook not being able to deal with criticisms and fines due to severaldata privacy scandals, several Democratic members feel that Facebook is already"too big and too powerful."

Japan has set new obligations fora speculative trade, such as maintaining a cryptocurrency protection fund andmore. However, it has been seen that toomuch regulation might backfire.

Roger Wilkins recently stated,"What we hear from industry is that the new rules may have the oppositeeffect to which they were intended, effectively forcing crypto transactions offthe controlled platforms, which are currently one of the best avenues we havein gaining visibility over financial crime.”

Roger Wilkins, stated,"Being a former regulator, it is important to identify a balanced solutionwhich will implement the recommendation of FATF when it comes to building theopportunity for business."

The regulatory landscapes areshifting, and cryptocurrency exchanges will have to improve the kind ofsecurity they provide on their offerings. Stricter regulations will be imposed on how to keep passwords andprivate keys safe.

Several startups will have tomove from being unregulated to the rank of licensed and regulated brokerages.