As cryptocurrency markets continue to remain uncertain this summer, following China’s official ban on financial institutions from providing cryptocurrencies services, and upcoming FATF (Financial Action Task Force) recommendations, retail investors are reminded that the biggest hurdle to mainstream cryptocurrency adoption continues to be the global regulatory climate.
In 2018, widespread cryptocurrency payments seemed within reach, as Pavel Durov sought to bring instant payments to 500 million active Telegram users, enabling instantaneous and affordable peer-to-peer global transactions. The project was to facilitate transactions through the ‘gram’ token on the Telegram Open Network (TON).
The dream ended when the SEC sued Telegram for an unlawful token issuance and filed for an emergency action halting Telegram from “selling or otherwise distributing” tokens within the United States. By 2020, the case escalated and Telegram was required to pay a $18.5 million civil settlement and pledge to return more than $1.2 billion invested into its token sale.