Crypto policies promote interest in self-reliance solutions

Around the world, countries are coming up with crypto policies. Some view these policies as useful developments against the risks of the crypto market, while others view them as a way for the government to monitor their activities.

According to a Coinbase survey, 56% of US crypto users know about independent solutions, and since 2023, inappropriate wallets have increased by 22%. Researchers at the University of Illinois said they held 35% of the market supply from 25% to 25% in 2022.

Decentralization remains one of the spirit of the crypto industry, but it is no longer news for bad actors to use it to carry out illegal transactions. Meanwhile, these atrocities plague some users because they want to control their tokens, driving them into the Decentralized Finance (DEFI) sector. While centralized exchanges promise better security of funds and assets, there are high-profile cases where these platforms are being breached.

Users continue to lose faith in centralized platforms

Crypto Wallet Exodus has registered 107% revenue, while CEO JP Richardson says the surge in demand for independent solutions is the direct cause of the rise. “Independence is the future. As trust in centralized platforms continues to erode, more people are realizing the importance of owning their keys,” Richardson said. “I am certainly pleased with the recent changes in the US. We are actively involved with regulators and advocating as a fundamental right to be independent over the years,” he added.

The founder and CEO of Crypto Wallet Cowchain Mykhailo Adzhoiev said the increase in adoption of independent wallets reinforced the general belief that if the token is not in your wallet, it is not yours. “Independence is no longer just about hardcore crypto nerds. It’s becoming a gateway for carrying the next wave of users,” says Adzhoiev.

According to Naka analysts, users are heading towards distributed systems because they prefer to control private keys. Their research shows that a freestanding wallet could reach $3.5 billion by 2031.

Crypto-policy boosts self-supporting solutions

One of the key cryptocurrency regulations in the cryptocurrency market is the market for European Union’s cryptocurrency assets (MICA) regulations. The regulatory framework is welcomed as one of the most complete in the world, as it provides clarity and security in the crypto industry. It features transparency, market integrity, strict compliance measures and investor protection.

In the US, the Securities and Exchange Commission (SEC) has traditionally over-enforced exchanges, urging users to explore decentralized exchanges as a means of managing assets. The new Trump administration has promised a better law and how to implement enforcement, but it is still unclear whether things will change.

FATF travel rules require Crypto Exchange to collect and share transaction information, causing raucous things to happen about privacy concerns. The move has also led to a shift towards an independent solution as users continue to look for ways to maintain autonomy. Additionally, other countries are coming up with regulations to support the movement.