✔️ Information reviewed and updated in December 2023 by Eduardo López
Although a priori they might seem two very similar concepts, in reality they are not, since each one has a very different background and meaning. We all know what cryptocurrencies are, a form of virtual money based on Blockchain. On the other hand, the cryptoactive would be the evolution of it.
According to analysts, the way cryptocurrencies will become cryptoactive in the future, far or near, we do not know. That is why, to be prepared, we have created this text where we will explain what crypto assets are about and how they are related to cryptocurrencies.
➡The evolution of an innovative model
According to analysts, a cryptocurrency becomes a cryptoactive when it is subjected to a clear and defined legal framework, as well as special regulations. This in order to make your operation something regulated, reliable and verified.
Yes, the specialized press believes that at some point cryptocurrencies will become a crypto asset when the authorities begin to regulate them with specific legal frameworks and laws. In this way, the innovative model of cryptocurrency will become a crypto asset, that is, a unique digital asset, which will operate together with shares, assets, etc.
➡Who is behind this decision?
It is the same American press specialized in finance which has said that behind this action is the Securities and Exchange Commission or SEC of the United States. And it is that this commission is seeking to create a special and unique regulatory framework for cryptocurrencies.
The idea is to guarantee that the operation of these virtual currencies is subject to norms and laws that allow both to regulate them and to protect the user. It is said that, in the coming months and years, new news about this will come out.
➡ What will the process of migrating from cryptocurrency to cryptoactive be like?
Although it is not yet known directly how the change would be made, it is said that the SEC would issue the operating rules, as well as the application request for cryptocurrencies. Each issuer would be in charge of sending documentation and would be subject to the review of its operations.
It is said that after the audit the SEC would determine which cryptocurrency passes the filters and which would not meet regulatory requirements. For example, Scams would not meet these points which would make them stay out as a crypto asset.
➡Which cryptocurrencies will become cryptoactive?
This is one of the questions that we can find the most on the internet, since there is no clear rule to know which cryptocurrencies will become cryptoactive. According to experts, it is said that those that went through an ICO would be the ones that would be subject to this change.
It is also said that cryptocurrencies that are not fully decentralized, such as those that were part of a financing such as ICOs, would be the ones that would become cryptoactive. For example, Ethereum, Ripple and NEO would participate while Bitcoin, Litecoin or Dash would be left out of this change.
➡Advantages of converting to crypto assets
- Greater certainty for users: This is perhaps one of the main advantages, as this change will offer users greater certainty knowing that crypto assets will be regulated. There will be a legal framework that protects them and prevents both abuse and scams, something common today.
- Clear operating rules: Although most cryptocurrencies follow the same rules of the game, in reality not all of them do it 100%. With the arrival of this change, you would have the advantage of knowing that each coin would comply with the same rules, so there would be no cheating or bad practices.
- Even terrain: Another of the great advantages offered by the use of crypto assets is the fact that they allow us to create a much more equitable terrain. In this way, and by having to meet the same requirements, cryptocurrencies will be able to operate on a much more even and equitable terrain.
- Operation on new platforms: What's more, conversion to crypto assets offers the opportunity to make cryptocurrencies operable through other platforms. Now we can find them, for example, in brokerage houses and other types of broker beyond the ones we all know.
➡What are the disadvantages of this decision?
The disadvantages that this type of decision offers is the fact that, in some way, cryptocurrencies would be losing their characteristic decentralization. This is because they would now be subject to a legal framework which would be regularized by an institution.
This would make, at the end of the day, crypto assets become a kind of bureaucratic asset, thus limiting the operation that they offered in a decentralized way. Although of course, se hopes that the new framework will only provide protection and regulation, but without taking away the benefits that these types of virtual currencies offer.
➡Is this decision a good one?
Yes, it is without a doubt one of the best news we have seen in recent years because of what it entails. And it is that unfortunately, the cryptocurrency market was filling up with scams and scams that were putting people at great risk of losing their money.
Many analysts agree that this is a great decision, as it will help weed out all the SCAMs and scams from this world of cryptocurrencies. What's more, It will attract more investors, which will raise the market value, and will also help people feel protected when investing.
➡When will this change take place?
There is no specific date for the changeover from cryptocurrencies to crypto assets, but there is a lot of speculation surrounding this. It is said that, in the coming years, this change will come as every day it becomes more evident that this is necessary.
At the moment, it is known that the SEC is already working on the methodology of the legal framework, cryptocurrency review, etc. So although it is not a date, we can say that day by day the change from cryptocurrencies to innovative crypto assets ready to