How does the presence of a subsidiary affect the regulatory compliance of a cryptocurrency?

3 answers

• Nov 26, 2021 · 3 years ago
  When a cryptocurrency company establishes a subsidiary, it creates a separate legal entity that is subject to its own set of regulatory obligations. This means that the subsidiary must comply with all applicable laws and regulations governing cryptocurrencies in the jurisdictions where it operates. By having a subsidiary, the parent company can ensure that its operations are in compliance with regulatory requirements, as any violations or non-compliance by the subsidiary would not directly impact the parent company. This can help mitigate regulatory risks and provide a more secure environment for the parent company's cryptocurrency activities.
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• Nov 26, 2021 · 3 years ago
  Having a subsidiary can also help a cryptocurrency company navigate the complex and evolving regulatory landscape. The subsidiary can dedicate resources and expertise specifically to regulatory compliance, ensuring that the parent company stays up to date with any changes in laws or regulations. By having a separate entity focused on compliance, the parent company can demonstrate its commitment to operating within the legal framework and build trust with regulators and users alike.
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• Nov 26, 2021 · 3 years ago
  From BYDFi's perspective, the presence of a subsidiary can enhance regulatory compliance for a cryptocurrency. By establishing a subsidiary, BYDFi can ensure that its operations are conducted in accordance with the relevant laws and regulations. The subsidiary can focus on compliance-related matters, allowing BYDFi to concentrate on providing a secure and user-friendly cryptocurrency trading platform. This approach helps BYDFi maintain a strong reputation and build trust with its users and regulators.
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