Crypto Regulations are coming…

a.shah

19 Oct 2020
Crypto Regulations are coming…

Understanding crypto regulation is an integral step in learning about the blockchain industry. On our Nextrope blog, we decode the existing ecosystem of regulation, recent regulatory changes and barriers against new regulation.

The Status-Quo of Crypto Regulation

Cryptocurrency’s decentralized nature has prevented governments from exercising universal control and regulations. This barrier prompted varying approaches to crypto regulation across countries.

Source: Visual Capitalist

1) Extremely Tight Regulation

Countries such as Algeria, Bolivia, Morocco, Nepal, Pakistan, and Vietnam have completely prohibited cryptocurrency. 

2) Tight Regulation

Qatar and Bahrain permit cryptocurrency-related activities strictly outside the borders. 

3) Slightly Tight Regulation

Instead of directly outlawing crypto-related activities, Bangladesh, Iran, Thailand, Lithuania, Lesotho, China, and Colombia have barred their financial institutions from executing crypto-related transactions.

4) Medium Regulation 

Australia, Canada, and the Isle of Man have amended their counterterrorism and money laundering laws to regulate cryptocurrency markets and mandate  due diligence requirements on their financial institutions.

5) Slightly Weak Regulation

Spain, Belarus, the Cayman Islands, and Luxembourg are establishing crypto-friendly regulations with the goal of attracting tech investments. 

6) Weak Regulation

Belgium, South Africa, and the United Kingdom have determined the current cryptocurrency market to be inconsequentially small and are yet to establish any regulations. 

7) Extremely Weak Regulation

France, Marshall Islands, Venezuela, the Eastern Caribbean Central Bank (ECCB) member states and Lithuania are in efforts of establishing their own cryptocurrency systems. 

Why is Regulation Necessary?

Wei Zhou, the chief financial officer of the cryptocurrency exchange, Binance, spoke out in support of the cryptoregulation. Experts such as Zhou recognize that the human elements of cryptocurrency makes the system vulnerable to fraud, money laundering, terrorism and organized crime. 

Despite some users’ concerns regarding the potential negative effects of crypto regulations on its trading values and innovation, major crypto regulations have empirically never posed a long-term impact on the share price of Bitcoin, save for some immediate volatility. Further, crypto users widely believe that regulations provide the much needed investor protections that offsets its potential drawbacks. 

Source: Finance Magnates

Recent Regulatory Actions 

European Union (EU) – Proposal for a Regulation on Markets in Crypto-assets (MiCa)

On September 24, 2020, the EU Commission enacted the regulations on Markets in Crypto-assets (MiCa). MiCa’s goals are (1) reducing the rate of cash payment, which currently make up 78% of all payments in the eurozone, and (2) stimulating responsible innovation and competition among financial services providers in the EU. 

MiCA plans to differentiate between crypto-assets governed by EU legislation from crypto-assets that fall outside its scope. Prof. Rasa Karpandza, a professor of Economics and Finance at New York University Abu Dhabi and EBS Business School, claimed that “In order to achieve widespread usage as an alternative to fiat options, blockchain and crypto assets need to be classified appropriately and this is a good first step”.

In order to harmonize the EU market and prevent market regulatory fragmentation, the EU Commission published a single set of immediately applicable rules for the EU's Single Market as opposed to a "Directive", which leaves Member State discretion through the need of national transposition. I believe that MiCA will effectively bring together the fragmented national crypto-asset legal regimes within the EU.

United States (US) – Stablecoin guidance

On September 21, 2020,the Securities and Exchange Commission (SEC) published stablecoin guidance, laying out the legal implications of  cryptocurrencies backed by fiat currencies for the first time. Stablecoin (cryptocurrencies designed to minimize volatility of price and usually backed by fiat money) issuers have been using U.S. banks for years but in an unclear regulatory environment. Through the new guidance, the SEC plans to better ensure safety for the federally regulated banks as they provide services to stablecoin issuers.

Venezuela – Decentralized Exchange

On October 2,2020, the National Superintendency of Securities of Venezuela (Sunaval) authorized the operation of a decentralized electronic exchange. This legalized the exchange of shares, fiat money, securities, debt securities and cryptocurrencies. Sunaval plans to decrease the commissions to nearly 0% in order to encourage its use.

Israel – Treatment of cryptocurrency as Fiat

On September 22, 2020, the Israeli legislature proposed the amendment of existing tax law. While the current income tax policy taxes digital currencies 25% anytime it is converted into fiat, the new legislation seeks to (1) have digital currencies be treated like fiat for tax purposes and (2) exempt gain taxes on digital currencies.

Malaysia – Approval of Cryptocurrency exchange

On January 15, 2019, Malaysia passed “The Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019”. Designed to regulate DAX operators, the Order was followed by the legalization of a cryptocurrency exchange agency’s operation. 

Nigeria – Beginning of regulatory conversation

Source: Google Trends, Regions with highest bitcoin searches

Bitcoin has become increasingly popular in Nigeria (highest google searches in the World) and the Nigerian SEC is working to recognize cryptocurrencies as financial securities and establishing safety regulations. The Nigerian SEC claimed that “the general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices”,  advocating that this will protect investors’ interests and promote transparency. 

South Korea – Permit System for Crypto Exchanges

On March 5, 2020, South Korea’s National Assembly passed a revised bill on the reporting and the use of special financial transaction information. The bill introduces a permit system for cryptocurrency exchanges as well as the plans to strengthen the Anti-Money Laundering (AML) system for virtual assets including cryptocurrency.

China – Digital Yuan

China has been working vigorously on the digital yuan, though cryptocurrency is formally banned in the country. Digital yuan targets the dominance of tech giants, such as Alibaba and Tencent, in the digital payments sector. However, the government remains cautious in its approach to both its own cryptocurrency and digital assets and is yet to issue regulations.

Barriers against Regulations?

1) Economic Strategy

Because some governments believe that crypto regulation will impede growth and innovation, they intentionally avoid implementing regulations as an economic strategy. These governments also believe that while high barriers to entry through stricter regulation can benefit users by providing security, it may also curtail potential projects through financial and regulatory strains.

2) Incomplete Understanding of Cryptomarket

Current understanding of cryptocurrency, of users, economists and policymakers, remains incomplete, partly due to the volatility of the crypto market and its small size. Thus, governments are hesitant to implement hasty regulations.

3) Threat to National Economic Sovereignty

Countries, specifically the developing nations, believe that cryptocurrency will be harmful to their economic sovereignty. Decentralized finance has the potential to disrupt the financial services sector. 

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AI in Real Estate: How Does It Support the Housing Market?

Miłosz Mach

18 Mar 2025
AI in Real Estate: How Does It Support the Housing Market?

The digital transformation is reshaping numerous sectors of the economy, and real estate is no exception. By 2025, AI will no longer be a mere gadget but a powerful tool that facilitates customer interactions, streamlines decision-making processes, and optimizes sales operations. Simultaneously, blockchain technology ensures security, transparency, and scalability in transactions. With this article, we launch a series of publications exploring AI in business, focusing today on the application of artificial intelligence within the real estate industry.

AI vs. Tradition: Key Implementations of AI in Real Estate

Designing, selling, and managing properties—traditional methods are increasingly giving way to data-driven decision-making.

Breakthroughs in Customer Service

AI-powered chatbots and virtual assistants are revolutionizing how companies interact with their customers. These tools handle hundreds of inquiries simultaneously, personalize offers, and guide clients through the purchasing process. Implementing AI agents can lead to higher-quality leads for developers and automate responses to most standard customer queries. However, technical challenges in deploying such systems include:

  • Integration with existing real estate databases: Chatbots must have access to up-to-date listings, prices, and availability.
  • Personalization of communication: Systems must adapt their interactions to individual customer needs.
  • Management of industry-specific knowledge: Chatbots require specialized expertise about local real estate markets.

Advanced Data Analysis

Cognitive AI systems utilize deep learning to analyze complex relationships within the real estate market, such as macroeconomic trends, local zoning plans, and user behavior on social media platforms. Deploying such solutions necessitates:

  • Collecting high-quality historical data.
  • Building infrastructure for real-time data processing.
  • Developing appropriate machine learning models.
  • Continuously monitoring and updating models based on new data.

Intelligent Design

Generative artificial intelligence is revolutionizing architectural design. These advanced algorithms can produce dozens of building design variants that account for site constraints, legal requirements, energy efficiency considerations, and aesthetic preferences.

Optimizing Building Energy Efficiency

Smart building management systems (BMS) leverage AI to optimize energy consumption while maintaining resident comfort. Reinforcement learning algorithms analyze data from temperature, humidity, and air quality sensors to adjust heating, cooling, and ventilation parameters effectively.

Integration of AI with Blockchain in Real Estate

The convergence of AI with blockchain technology opens up new possibilities for the real estate sector. Blockchain is a distributed database where information is stored in immutable "blocks." It ensures transaction security and data transparency while AI analyzes these data points to derive actionable insights. In practice, this means that ownership histories, all transactions, and property modifications are recorded in an unalterable format, with AI aiding in interpreting these records and informing decision-making processes.

AI has the potential to bring significant value to the real estate sector—estimated between $110 billion and $180 billion by experts at McKinsey & Company.

Key development directions over the coming years include:

  • Autonomous negotiation systems: AI agents equipped with game theory strategies capable of conducting complex negotiations.
  • AI in urban planning: Algorithms designed to plan city development and optimize spatial allocation.
  • Property tokenization: Leveraging blockchain technology to divide properties into digital tokens that enable fractional investment opportunities.

Conclusion

For companies today, the question is no longer "if" but "how" to implement AI to maximize benefits and enhance competitiveness. A strategic approach begins with identifying specific business challenges followed by selecting appropriate technologies.

What values could AI potentially bring to your organization?
  • Reduction of operational costs through automation
  • Enhanced customer experience and shorter transaction times
  • Increased accuracy in forecasts and valuations, minimizing business risks
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Want to implement AI in your real estate business?

Nextrope specializes in implementing AI and blockchain solutions tailored to specific business needs. Our expertise allows us to:

  • Create intelligent chatbots that serve customers 24/7
  • Implement analytical systems for property valuation
  • Build secure blockchain solutions for real estate transactions
Schedule a free consultation

Or check out other articles from the "AI in Business" series

AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

Gracjan Prusik

11 Mar 2025
AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

AI Revolution in the Frontend Developer's Workshop

In today's world, programming without AI support means giving up a powerful tool that radically increases a developer's productivity and efficiency. For the modern developer, AI in frontend automation is not just a curiosity, but a key tool that enhances productivity. From automatically generating components, to refactoring, and testing – AI tools are fundamentally changing our daily work, allowing us to focus on the creative aspects of programming instead of the tedious task of writing repetitive code. In this article, I will show how these tools are most commonly used to work faster, smarter, and with greater satisfaction.

This post kicks off a series dedicated to the use of AI in frontend automation, where we will analyze and discuss specific tools, techniques, and practical use cases of AI that help developers in their everyday tasks.

AI in Frontend Automation – How It Helps with Code Refactoring

One of the most common uses of AI is improving code quality and finding errors. These tools can analyze code and suggest optimizations. As a result, we will be able to write code much faster and significantly reduce the risk of human error.

How AI Saves Us from Frustrating Bugs

Imagine this situation: you spend hours debugging an application, not understanding why data isn't being fetched. Everything seems correct, the syntax is fine, yet something isn't working. Often, the problem lies in small details that are hard to catch when reviewing the code.

Let’s take a look at an example:

function fetchData() {
    fetch("htts://jsonplaceholder.typicode.com/posts")
      .then((response) => response.json())
      .then((data) => console.log(data))
      .catch((error) => console.error(error));
}

At first glance, the code looks correct. However, upon running it, no data is retrieved. Why? There’s a typo in the URL – "htts" instead of "https." This is a classic example of an error that could cost a developer hours of frustrating debugging.

When we ask AI to refactor this code, not only will we receive a more readable version using newer patterns (async/await), but also – and most importantly – AI will automatically detect and fix the typo in the URL:

async function fetchPosts() {
    try {
      const response = await fetch(
        "https://jsonplaceholder.typicode.com/posts"
      );
      const data = await response.json();
      console.log(data);
    } catch (error) {
      console.error(error);
    }
}

How AI in Frontend Automation Speeds Up UI Creation

One of the most obvious applications of AI in frontend development is generating UI components. Tools like GitHub Copilot, ChatGPT, or Claude can generate component code based on a short description or an image provided to them.

With these tools, we can create complex user interfaces in just a few seconds. Generating a complete, functional UI component often takes less than a minute. Furthermore, the generated code is typically error-free, includes appropriate animations, and is fully responsive, adapting to different screen sizes. It is important to describe exactly what we expect.

Here’s a view generated by Claude after entering the request: “Based on the loaded data, display posts. The page should be responsive. The main colors are: #CCFF89, #151515, and #E4E4E4.”

Generated posts view

AI in Code Analysis and Understanding

AI can analyze existing code and help understand it, which is particularly useful in large, complex projects or code written by someone else.

Example: Generating a summary of a function's behavior

Let’s assume we have a function for processing user data, the workings of which we don’t understand at first glance. AI can analyze the code and generate a readable explanation:

function processUserData(users) {
  return users
    .filter(user => user.isActive) // Checks the `isActive` value for each user and keeps only the objects where `isActive` is true
    .map(user => ({ 
      id: user.id, // Retrieves the `id` value from each user object
      name: `${user.firstName} ${user.lastName}`, // Creates a new string by combining `firstName` and `lastName`
      email: user.email.toLowerCase(), // Converts the email address to lowercase
    }));
}

In this case, AI not only summarizes the code's functionality but also breaks down individual operations into easier-to-understand segments.

AI in Frontend Automation – Translations and Error Detection

Every frontend developer knows that programming isn’t just about creatively building interfaces—it also involves many repetitive, tedious tasks. One of these is implementing translations for multilingual applications (i18n). Adding translations for each key in JSON files and then verifying them can be time-consuming and error-prone.

However, AI can significantly speed up this process. Using ChatGPT, DeepSeek, or Claude allows for automatic generation of translations for the user interface, as well as detecting linguistic and stylistic errors.

Example:

We have a translation file in JSON format:

{
  "welcome_message": "Welcome to our application!",
  "logout_button": "Log out",
  "error_message": "Something went wrong. Please try again later."
}

AI can automatically generate its Polish version:

{
  "welcome_message": "Witaj w naszej aplikacji!",
  "logout_button": "Wyloguj się",
  "error_message": "Coś poszło nie tak. Spróbuj ponownie później."
}

Moreover, AI can detect spelling errors or inconsistencies in translations. For example, if one part of the application uses "Log out" and another says "Exit," AI can suggest unifying the terminology.

This type of automation not only saves time but also minimizes the risk of human errors. And this is just one example – AI also assists in generating documentation, writing tests, and optimizing performance, which we will discuss in upcoming articles.

Summary

Artificial intelligence is transforming the way frontend developers work daily. From generating components and refactoring code to detecting errors, automating testing, and documentation—AI significantly accelerates and streamlines the development process. Without these tools, we would lose a lot of valuable time, which we certainly want to avoid.

In the next parts of this series, we will cover topics such as:

Stay tuned to keep up with the latest insights!