Cryptocurrency Regulations for Mortgages Should Consider Self-Custody

The application of digital currencies in financial dealings, including property acquisition, is on the rise. However, the regulatory guidelines governing the use of cryptocurrencies in mortgages remain ambiguous in many jurisdictions. It is essential that these regulations acknowledge the self-custodial nature of cryptocurrencies, where individuals retain their private keys and exercise complete authority over their digital assets. Regulations should offer explicit guidance on verifying the origins of digital funds, their valuation for mortgage purposes, and the management of risks associated with cryptocurrency price volatility. Furthermore, regulations should protect the rights of both lenders and borrowers, while ensuring adherence to anti-money laundering and counter-terrorism financing laws. Developing effective cryptocurrency rules in the mortgage sector requires collaboration between regulators, cryptocurrency experts, and financial institutions to ensure a fair, transparent, and innovative framework.