Monday, May 20, 2024

The Rise of Solana-Based Meme Coin BONK and Regulatory Updates in the Crypto World

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The world of cryptocurrencies continues to captivate investors and enthusiasts alike, with novel blockchain technologies proving their potential to revolutionize various industries. In this blog post, we delve into the recent surge of Solana-based meme coin BONK, the regulatory landscape surrounding crypto in India, and the Basel Committee’s plans to revise criteria for stablecoins.

1. BONK: A Meme Coin on the Rise:

Over the past 24 hours, Solana-based meme coin BONK has experienced a remarkable increase in value, solidifying its position as the best-performing digital asset. This surge can be attributed to the growing popularity of Solana, a blockchain network known for offering cheaper and faster transactions compared to its counterparts.

The meme coin phenomenon, characterized by the creation of digital assets with humorous or satirical origins, continues to capture the imagination of investors. While major meme coins like Dogecoin, Shiba Inu, and Pepe have seen a decrease in value in the past day, their overall gains over the past week remain significant.

2. India’s Approach to Crypto Regulation:

In the context of India, the introduction of a specific legislative bill for crypto or Web3 is not expected until at least mid-2025. Jayant Sinha, Chair of the Standing Committee on Finance in India’s Parliament, cited several factors contributing to this delay. These include evolving use cases, the need to align with global standards, and recent regulatory actions.

Instead of relying on immediate legislation, India is likely to navigate the crypto industry through policy decisions and existing regulations. Sinha emphasized the importance of a careful and cautious approach due to capital controls and highlighted the need for Web3 entrepreneurs and enthusiasts to propose regulatory frameworks for consideration.

3. Basel Committee’s Revisions for Stablecoins:

The Basel Committee, a global standard-setter for banks, recently announced its plan to revise criteria for stablecoins. This decision follows the committee’s review of standards for banks’ exposure to cryptocurrencies.

With recent collapses of banks tied to cryptocurrencies, namely Silvergate Bank and Silicon Valley Bank, regulators have heightened their scrutiny of bank involvement in the crypto space. As a result, the committee aims to consult on criteria for stablecoins to receive regulatory treatment.

While the Basel Committee intends to retain the existing treatment for crypto assets using permissionless blockchains, it will continue to closely monitor banks’ crypto custody activities.

The world of blockchain and cryptocurrencies remains dynamic and ever-evolving. The rise of Solana-based meme coin BONK and its association with the growing popularity of Solana and its native coin SOL exemplifies the potential of novel blockchain networks in offering faster and more affordable transactions.

In India, the regulatory landscape for crypto and Web3 is expected to rely on policy decisions and existing regulations, encouraging entrepreneurs and enthusiasts to propose frameworks for consideration.

The Basel Committee’s decision to revise criteria for stablecoins reflects regulatory efforts to mitigate risks and ensure banks’ responsible involvement in the crypto space. As the crypto market matures, continued monitoring and updates become necessary to maintain stability and protect investors.

Disclaimer: This blog post provides general information and does not constitute financial advice. Cryptocurrency investments carry inherent risks, and readers are advised to conduct their own research and exercise discretion.

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