Mar 30, · The Reason Why Bitcoin Market Should Be Regulated Posted on March 30, | by Kathy Bowman Bitcoin price fluctuation and its effects on the people is a topic that continues to be debated among economists. Many people around the world are still trying to . Nov 19, · “The crypto market continues to mature with the increased participation by financial institutions and the introduction of new contracts on regulated exchanges.” And on October 3, Nikolaos Panigirtzoglou, a Managing Director at J.P. Morgan who works on Global Market Strategy, published a report that talked about the long-term potential of Author: Siamak Masnavi. Nov 23, · Given the current bitcoin market capitalization of about $ billion, Dimon asserted that “If it gets bigger and bigger and bigger, it will be regulated.” Clayton described that at the SEC: We determined that bitcoin was not a security, it was much more payment mechanism and store of value.
Bitcoin regulated marketThe Reason Why Bitcoin Market Should Be Regulated | bitcoinlife24.de
The Swiss Federal Council has stated that while there is no need to regulate cryptocurrency currently, laws on how the financial sector will make use of them are being established to determine their status as securities and taxability. Accordingly, Switzerland hosts a rapidly booming blockchain startup scene, governed by inclusive community entities like the Crypto Valley Association, a non-profit designed to standardize the onboarding of new blockchain technology into the Swiss ecosystem.
In this case, they have also recognized the danger of some cryptocurrency concepts like ICOs, and issued warnings in response.
Accordingly, banks are not able to offer their customers bitcoin but neither is it unlawful to hold bitcoins, leaving the sector to be driven by fintech innovators exclusively. In Asian countries like Bangladesh, Nepal, and Kyrgyzstan, using or trading virtual currencies is highly illegal and comes with harsh punishments.
The lack of any regulation whatsoever helped China to become an early adopter in the blockchain space, especially in bitcoin trading and mining, but it went through a drastic reversal earlier in the year. Scared by how much capital was fleeing the country via bitcoin, China imposed sudden strict regulations on bitcoin trading and more, and enthusiasts in the country are still dealing with con Australia is a Recent Haven For Blockchain Australia has struck a beneficial balance in how they handle both blockchain technology and speculative cryptocurrencies.
The government has stated that it will assess each ICO and platform on a case-by-case basis with the main concern being whether these platforms offer a security or form a managed investment scheme. With few exceptions, their collective strategy has been to watch patiently on the sidelines.
Even the biggest economic entities are playing the waiting game, but most who have acted did so in a positive, gentle manner.
Your Money. Personal Finance. The government is already taking care of such things as crime, so why not try to regulate the economy through currency? The results of this would be exactly what the government wants. They want the bitcoin price to remain stable, so they would implement stricter regulations. Because of this, the people would be happy, and it would also help them save money. How would they go about doing this though?
Well, it would basically be a way for the government to control the flow of money, which includes currency. Everyone would be happy about the new rules, because there would be no more speculation in the market. If the rules are not followed, then fines would be given out, and the person who broke the rules would be fined heavily. They would be able to take your entire salary, and confiscate all of your money. Typically, cryptocurrency bills must go through several rounds of proposal and consideration before they are finally approved.
Secondly, many of the smaller nations are waiting for the big nations to make up their minds or for mass adoption of blockchain technology to force their hands. This, while frustrating, seems to be prudent. Finally, there are nations that feel that cryptocurrencies should not be legislated under any circumstances.
Despite this, there may be many reasons to regulate. In Japan, for example, the increase in exchange hacks created a financial crisis. In October, South Korea estimated that crypto exchanges were hacked seven times and there were cases of wallet hacks in the last three years in the country. Most of the hacks were thought to originate in North Korea, which still has tensions with South Korea.
For now, it is imperative to track changes to international cryptocurrency law. Taking the temperature of the regulatory environment for ICOs and STOs is a wise course for any investor wading into the space. Keeping an eye on regulatory trends will enable investors to avoid running afoul of the legal requirements that come with investment. Investors want to make sure that the exchange they are using is safe while their funds and information will not be compromised or misused.
However, finding the right balance between regulatory safety and user privacy is still an ongoing challenge. As for token offerings, it is the responsibility of the investor to do his or her due diligence before investing. While regulations can help to reduce the investment risk, the best risk reduction practice is extensive research and preparation.
The Bitcoin Market Journal can help with that. Our team of investment analysts conducts deep research and analysis of digital currencies and tokens. Bitcoin Market Journal is ad-free, so you can trust what you read. Sign up for our newsletter and keep us honest. Antigua and Barbuda Not regulated Not regulated Antigua and Barbuda does not have any legislation regarding cryptocurrency use. The country, however, allows non-profits and charities to fundraise by selling the state-supported Antigua and Barbuda Development Coin.
The Attorney General has been instructed to draft a regulatory framework on bitcoin. No clarification on the current status of the regulations is available. They can, however, be used as money, and income derived from their sale are subject to income tax. Security tokens are subject to securities rules.
Barbados Not regulated Not regulated The Central Bank of Barbados CBB released a paper detailing whether cryptocurrencies should be included in its portfolio of international reserves, but nothing has been acted upon so far. Bermuda In the process of drafting digital currency regulations Not regulated The Bermuda government is in the early stages of drafting regulations with the aim of making the country an international hub for cryptocurrencies.
Bolivia Banned Banned Bolivia does not recognize currencies not issued from a central bank or monetary authority. British Virgin Islands Not regulated Slightly regulated The British Virgin Islands does not have any regulations regarding the trade of cryptocurrencies.
Yet, one commentator has claimed that existing laws appeal to companies that want to do ICOs, and some have already registered and conducted ICOs in the country. One is the banking sphere, where concerns about the speculative nature of cryptocurrency led to an unofficial banking ban. Per the Financial Consumer Agency, only the Canadian dollar is recognized as legal tender. While digital currencies are subject to income tax, purchases made with digital currency are considered barter transactions.
Digital assets are also treated as commodities, as they are subject to capital gains reporting and taxes. However, the nation subjects some cryptoassets to its securities regulatory framework. Chile Not regulated Not regulated Digital coins are not regulated nor supervised by the Chilean government. The ECCB does not ban the use of digital currencies, with some of the participating members currently having agendas supporting or promoting cryptocurrency and blockchain technology.
Businesses using cryptocurrencies must disclose the associated risks to their clients; beyond this, crypto assets are treated as securities depending on their characteristics. There are no personal restrictions against cryptocurrency use. Individuals are free to use and possess cryptoassets if they are lawfully obtained. Cryptoassets are recognized as money and — depending on the state or municipality — legal tender for non-federal debts.
Business requirements for use and possession for cryptoassets depend on the state and local regulations. These range from no special licensing needed for crypto business money transmitters to requiring fiduciary deposits for all transactions transmitted from, to, and through a state. Cryptoassets are taxed as commodities. However, the Asamblea National National Assembly has ruled that all cryptocurrencies, including the petro, are illegal as they were not approved by the Central Bank.
However, the Government has ruled that the petro islegal tender for all transactions involving government institutions. Additionally, cryptocurrency transactions are ruled to be exempt from value-added taxes VATs.
For taxation purposes, they are treated as a business asset. This is intended primarily for businesses operating in the High Technologies Park in Belarus. Fiat money exchange must be approved by the National Bank. There are no established rules in the decree that regulates the operation of ICOs and crypto exchanges; they can self-regulate, with the caveat that they are to be treated as high-risk clients, like casinos.
The Central Bank has also banned the conversion of crypto into the mark and vice versa. Virtual currency service providers are required to have a license. Undertakings and persons that arrange the acquisition of tokens, sell or purchase tokens on a commercial basis, or carry out principal brokering services in tokens via online trading platforms, among others, are generally required to obtain authorization from BaFin in advance.