As last year was been said to be the year of ICO, It seems this year (2020) is the year of regulation in cryptocurrencies. Issues are already happening on ground as countries around the world argue with cryptocurrencies and discussing on how they can amend it. Some countries seem to be welcoming the currency while some are very cautious about the currency and some are really showing active opposition toward the currency.
The United States, at this moment, shows no logical or consistency towards cryptocurrencies regulation, besides that they seem to do something soon. The Security And Exchange Commission has Earlier warned investors of the risk behind investing on cryptocurrencies, They suspended several ICOs and focused on the need for greater regulation.
The Commodity Futures Trading Commission (CFTC) Is the first U.S. regulator to accept cryptocurrency derivatives to trade publicly, then went ahead to call for a meeting to discuss about possibly amending the rules of cryptocurrencies, though one of the meeting couldn’t hold because of the shutdown by Federal Government.
The Treasury Secretary Steve Mnuchin has showed some concern for Minted Fiat currency over cryptocurrency. Speaking on a meeting held at the Economic Club In Washington, D.C., on the 12th of January 2018, he went ahead to caution the attendees that he has gone under research with other regulators and found out that they is a huge possibility that cryptocurrency can be used for money a laundering scam.
He then announced to the group that the Financial Stability Oversight Council (FSOC) had established a team working to explore the cryptocurrency market and that his hope is to align with G20 to stop bitcoin from a becoming a digital equivalent of a “ Swiss bank account.”
Standing on his opinion to the world Economic Forum Attendees, he further explained that his main goal is to make sure that cryptocurrencies are not used for illegal activities.”
The Treasury Deputy Director Sigal Mandelker on 26 january 2018 repeated the secretary’s opinion after she visited China, Japan, South korea. At a press conference in Tokyo she showed her impression on the three Asian countries for Observing Cryptocurrency Trading closely, Saying, “We feel very strongly that we need to have this kind of regulation all over the world.”
It should be noted that investors outside the U.S may have concerns over the clearing of license hurdles listed by the states. If the currencies is being treated as a currency in the U.S. it seems more likely that the moves by Federal Government and Federal Regulatory agencies would prevent states licencing.
However, if treated as “securities” cryptocurrencies, especially ICOs, would have to clear “blue sky laws” on a state-by-state basis.
Venezuela’s regulatory on cryptocurrency deserves to be given attention, though it is not a major world economy or a large portion of cryptocurrency, but the Government under the tenor of Nicolás Maduro, worked against the Economic sanctions imposed on Venezuela by announcing its own oil backed “petro” cryptocurrency.
During the regime of Maduro, Venezuela was divided for years by the clashes which they experienced by opposition parties and the Government. The country started on 2017 to seek for the crack down of cryptocurrencies as the Venezuelan Boliver continued being unused. Recently on December 2017 the Maduro Government attempted to regulate the Cryptocurrency mining as the newly minted superintendent of cryptocurrencies,
If a country like Venezuela which has a low currency worth, continues to support cryptocurrencies may help them to become the most progressive conutries on crytocurrencies regulations.
In no way is cryptocurrencies considered to be a legal tender by The Financial Consumer Agency in Canada. The True North, however, is not that strict on the regulation of cryptocurrencies.
In fact, it seems to be the most country that understand the law surrounding the digital currency industry thereby referred to as the most transparent among this list, Apart from the Switzerland that wants to be “ The crypto-nation.
On June 19, 2014 the Canadian Parliament approved Bill C-31 which is the first national law on digital currencies. The Canadian Government has been eager to show impact on its regulatory stances on cryptocurrencies long time ago, The Canadian Securities Administrators (CSA) sent out a regulatory notice on the 24Th of August 2017, to confirm its capacity towards the applicability on Canadian securities laws to cryptocurrencies and also its trading article.
Recently Stephen Poloz, The head of the central Bank of Canada, was quoted saying on 25, 2018 that “I object to the term cryptocurrencies because they are crypto but they aren’t currencies … they aren’t assets for the most part … I suppose they are securities technically … There is no intrinsic value for something like bitcoin so it’s not really an asset one can analyze. It’s just essentially speculative or gambling.”
Coming to your notice that Cnada joined an association-wide “cautionary directive” on the risks behind cryptocurrencies, followed with all the representatives from every province, believing that cryptocurrencies have a very high level of fraud.
Currently Japan is not strictly focusing on digital currency regulation; the country is hardly winning the the race to attract the best from Asia’s cryptocurrency industry, just as South Korea and China have been establishing hostiles and uncertain Environments.
Nevertheless Japan will accept cryptocurrency J- POP band, the Government of Japan has always been showing interest to cryptocurrencies more than its Asian neighbors.
The event of a Japanese Exchange being hacked on January may have tempered the zeal they have for cryptocurrencies, which resulted to the loss of $530 million worth of NEM coins, this caused a downsize on their economy and community.
The regulations of cryptocurrencies in South Korea, The country grew very large in cryptocurrency in the past and was taken as the country of refuge after the the crackdown of the currency in China early last year. However they was a disagreement between top Korean officials on future actions towards the regulation of digital currency industry, with clarifications, misinformation, declaration and highly some limited implementation.
The undetermined negative regulatory impacts have been cited as the reason for the marketwide sell-offs on Red Tuesday as well as on January 23, 2018, rule of not allowing anonymous accounts from trading cryptocurrencies.
South Korea regulatory prospects have also been made difficult by the New York State’s department of financial Services (DFS), as they continuously demanded for Customers information on accounts related to cryptocurrency trading among the six commercial Korean banks with branches in New York on January 26, 2018.
China is the country that adapted a strict action on taking down anything cryptocurrency. They started by banning ICOs, the republic gave an order to freeze bank accounts related to Exchanges, chased out bitcoin miners, and carried out a nationwide ban on internet and mobile access to everything associated to cryptocurrency Trading. The people’s republic of China happens to be the most strict about cryptocurrency regulation of the major economies regarding cryptocurrencies.
In the year 2017 Chinese bitcoin miners got up to 50% of the world mining population and the use of cryptocurrencies in China increased to a rate more than any other country.
Moreover the country has been focused on steeming capital outflows and fighting corruption, under the stewardship of Xi jinping, since the country has such project on fixing their country I think the regulation action they carried out really matters to them.
The Monetary Authority of Singapore(MAS), Just like other financial regulators, Gave out caution of the risk behind trading cryptocurrency, during the peak in bitcoin prices on December 2017. Also the Singapore’s international Commercial Court got a trail case that same period they warned about the risk of cryptocurrencies, over a bitcoin trading charge back, seeming to affect the economic stakes in dispute.
The Deputy Prime minister of Singapore ‘Tharman Shanmugaratnam’
On January 9, 2018, made a speech that “the country’s laws do not make any distinction between transactions conducted using fiat currency, cryptocurrency or other novel ways of transmitting value.”
MAS fintech chief Sopnendu Mohanty on January 24, 2018 did state that there is a great indication that regulators are getting very strict about the whole cryptocurrency market
Mohanty added that regulators should apply consumer protection for digital currencies like bitcoin, so it can continue to grow, while the Authority of Singapore has said nothing about the $539million hack that attacked Japanese exchange coincheck, that targeted Singaporean-based NEM coins.
India was once a conducive country for cryptocurrencies, but then has been preventing cryptocurrencies in 2018.
India also have same reason as other countries did say things like money laundering, illegal activities, Tax evasion, etc. As the country is working towards the regulation of cryptocurrencies, participants of the local cryptocurrency industry still have in mind thet India cannot ban cryptocurrencies just like China did.
UNITED KINGDOM / EUROPEAN UNION
The United Kingdom and the European Union are still together in their plans to regulate cryptocurrencies, not minding the Brexit schedule to the force the U.K and the European Union to go apart.
On december 4, 2017, According to the Guardian and telegraph they reported that E.U and U.K. have plans aiming at putting an end to the anonymity attached to cryptocurrencies, for the traders. Citing anti-money laundering and tax evasion crackdowns.
This plan will require the European Union to carry out a better due diligence on customers and report any transaction that looks suspicious. Same with the treasury office of the United Kingdom, that stated that they are “working to address concerns about the use of cryptocurrencies by negotiating to bring virtual currency exchange platforms and some wallet providers within anti-money laundering and counter-terrorist financing regulation.”
They furthered their stated saying “there is little current evidence of cryptocurrencies being used to launder money, though this risk is expected to grow.”
While one other European Union commissioner, Pierre Moscovici sayed on an interview held with Blomberg on December 18, 2017, that the EU was not actually interested in regulating bitcoin, his statement looks to be a very consequent message passed. Two days later Moscovici’s message was countered by the Vice President of the European Commission Valdis Dombrovskis, when he told reporters in Brussels that.
“There are clear risks for investors and consumers associated to price volatility, including the risk of complete loss of investment, operational and security failures, market manipulation and liability gaps.”
Movement for greater cryptocurrency regulations passed across Europe in January 2018. On January 15, Bruno le maire French Minister of the Economy announced the born of a working team with the goal of regulating cryptocurrencies. Similarly, Joachim Wuermeling, a board member of the German Bundesbank, called for effective regulation of virtual currencies on a global scale.
On January 22, 2018, Dombrovskis furthered his regulatory agenda for cryptocurrencies by writing three of the EU’s watch dogs warning them of a bubble in bitcoin. On January 25, 2018, embattled U.K. Prime Minister Theresa May joined the fray, echoing the sentiments of International Monetary Fund head Christine Lagarde and U.S. President Donald Trump. When speaking to Bloomberg during the World Economic Forum at Davos, the prime minister stated, “We should be looking at these very seriously — precisely because of the way they can be used, particularly by criminals.”
While the U.K. and EU have not announced finalized regulations of cryptocurrencies, an expected announcement is likely due in the spring.
Just like the south Korea don’t really know how they will handle cryptocurrency regulation. Chief of Russian Federation Central Bank Elvira Nabiullina stated that the Central Bank was against regulating cryptocurrencies as currency and also against making them equal with a foreign currency, From his statement it seems they are making negative move for the cryptocurrency industry in Russia.
However, on September 8, 2017, Alexei Moiseev the deputy finance minister for the Russian Federation, Explained to reporter at a Moscow Financial Forum, That the settlement of payments in cryptocurrencies are not legal as they speak, He moved on with his statement saying, “Obviously, now there is a legal vacuum, and accordingly it’s hard for me to say if these actions are legal or not.”
Before this statement a rule was carried out by the Russian Government that the only people allowed to deal with cryptocurrencies are the “qualified investors” only, later on, the Russian President believed “Vladimir Puttin” with the Finance Ministry on October 11, 2017 when he concluded that the use of cryptocurrencies follows with a big risk being an opportunity for financial terrorism and spreading fraudulent schemes that would victimize Russian citizens.
The Finance Ministry made progress with the strict regulatory stance by suggesting a taxation on cryptocurrency mining ventures on December 28, 2017.The new year started with more hints at Russian prevention on cryptocurrencies, as their president that the cryptocurrency market will be needing a legislative regulation in the future.
President Putin stated, “This is the prerogative of the Central Bank at present and the Central Bank has sufficient authority so far. However, in broad terms, legislative regulation will be definitely required in the future.”
Two weeks later, on January 25, 2018, the Finance Ministry published a draft law “On Digital Financial Assets.” The law, if finalized, would define tokens, establish ICO procedures and determine the legal regime for cryptocurrencies and mining.
Presidential candidate Boris Titov decried the proposed legislation on January 26, 2018, sayed that the draft law is excessively strict, on a press service Titov’s said, “The Finance Ministry’s proposals present a much tougher regulation than in Japan, Switzerland, Belarus [and] Armenia; that is, in all countries that have adopted some form of legislation. It would be better not to adopt anything than to adopt such legislation.”
Further muddying the waters was a concession by Deputy Minister Moiseev that the December 2017 Belarusian adoption of the “Digital Economy Development Ordinance” could cause capital outflows from Russia to neighboring Belarus if heavy crypto-regulation occurred in the Russian Federation.
Dr Ernest Addison the governor of the Bank of Ghana stated on january 22, 2018 he governor of the Bank of Ghana, Dr. Ernest Addison, that “Bitcoin is not yet legal tender” at a media briefing.
Thereby a bill is passed before the Ghanaian parliament that will allow thr use of cryptocurrencies, strictly for companies registered as “Electronic Miney Issuers” by the Government.
The recent state for bitcoin is according to Graphics Online, one of “six countries that have outlawed bitcoin.” Addison’s statements come weeks after a recommendation from the Ghanaian investment bank, Group Ndoum, suggested that the Bank of Ghana invest 1 percent of its reserves in bitcoin.
In conclusion this is the overview of world countries and their decisions over the regulation of cryptocurrencies. Thanks