In order to ensure the integrity and security of the cryptoasset market, a number of regulations have been created for Cryptoasset Service Providers (CASPs); however, there are some myths surrounding CASPs. Below, we will learn about some common myths about Cryptoasset Service Providers (CASPs).
They are not regulated and lack supervision
Some individuals and companies consider certain operations of Crypto-Asset Service Providers (CASPs) to be illegal due to a lack of oversight or failure to comply with certain regulations. However, various countries have implemented specific regulatory frameworks for CASPs. For example, in Europe, the Markets in Crypto-Assets Regulation (MiCA) has been introduced to regulate these entities. Furthermore, in compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CTF) regulations, CASPs are required to be accountable and keep regulatory authorities informed about every transaction they process.
They are not affected by market volatility
Some people believe that Crypto Asset Service Providers (CASPs) manipulate the value of assets and that they are not affected by market volatility. However, all Crypto Asset Service Providers (CASPs), like entities that provide financial services, can be affected by market volatility, which is why they must be transparent and comply with a series of regulations. We must take into account that all cryptoassets are characterized by a high degree of volatility.
They are solely responsible for ensuring the security of the assets
Some people and companies believe that Crypto Asset Service Providers (CASPs) are solely responsible for ensuring the security of assets. However, even though CASPs have security measures and protocols required by the financial industry, it is important to highlight that asset security is also the responsibility of users. For example, the user is responsible for using strong passwords, not sharing their passwords, enabling two-factor authentication, and not sharing the devices where they log in, among others.
They all offer the same services
There are people and companies that believe that all Crypto Asset Service Providers (CASP) are the same and offer the same services. Therefore, it does not matter which provider to choose. However, the reality is that there is currently a wide variety of financial services on the market, which vary according to each financial entity, the type of license it has, and the regulatory requirements and obligations on which they base their operations. Among the most common services, the custody service, digital wallets (wallet), and Exchange, among others, stand out.
Expensive services
Some people and companies consider the services of Crypto Asset Service Providers (CASP) to be expensive. However, the fees associated with operations and transactions often differ from one provider to another, influenced by high demand and competition in the market. This leads to more affordable prices, which are determined by the dynamics of supply and demand. It is important to note that each user is free to select the provider that provides the most appropriate financial solutions to their specific needs and requirements.
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