Regulations pertaining to the bitcoin and other cryptocurrencies are currently a hot topic. However, government bodies have been releasing statements regarding digital assets as far back as 2012. Well before the price of a bitcoin started scratching close to $8,000 per unit.
The legality of digital assets may vary wildly from border to border. For example, Estonia openly embraces Blockchain technology and digital currencies. While countries like China and South Korea have outright banned ICO practices. Additionally, they are putting a lot of pressure on the crypto industry as a whole.
The topic of cryptocurrency slash bitcoin regulations is not an easy one, after all, there’s a lot of money in the industry at the moment.
Why are governments concerned with the bitcoin?
The bitcoin and other cryptos have a lot of uses. First off, users behind transactions generally remain anonymous. Unless all of their dealings are done on an exchange. It’s pretty obvious as to how this may worry government bodies.
Bitcoins have commonly been used in the dark web for carrying out illegal activities like purchasing drugs, firearms, fake ID’s, fake cards, and even hacking email accounts. A great example of dark web platform on which bitcoins were used for unethical means is Silkroad.
Most Important bitcoin and crypto regulatory news from the United States.
The US Securities and Exchange Commission (SEC): While the SEC hasn’t completely entangled itself with cryptocurrency market regulations, it has made some moves. It has consistently published alerts for investors warning them of fraud and scams that are commonplace in the digital asset community. Additionally, over the summer, the SEC barred USA citizens from buying security assets from ICO’s.
It is expected that cryptocurrencies and the bitcoin will become more regulated in the united states within the near future. They might even be given the same financial safeguards as traditional assets if they grow enough.
Europes stance on bitcoin and crypto.
In general, the European Union has an overall lax approach towards digital assets. Several countries from the EU have on occasion released statements warning investors of the dangers associated with the bitcoin and investing in ICO’s. Though, Blockchain progressive countries like Estonia have proven that the use of crypto technology can benefit a country greatly.
As a matter of fact, the European Commission recently devoted a substantial amount of funds towards Blockchain research. Additionally, earlier this year, the European Union Governing body announced that they are attempting to work on supporting decentralized ledger technology.
Russia has been relatively skeptical of the bitcoin and other cryptocurrencies. However, they are not alien to the idea of researching Blockchain technology to see how it could improve public services. The introduction of the CryptoRuble was announced back in October. While Russia has banned bitcoin exchanges, the country is still taking baby steps towards understanding the technology and making it more honed and professional in order to protect its citizens from volatility.
Of course, all European Nations are cracking their heads at how child trafficking, money laundering, tax evasion, and illegal dark web activity can be combatted effectively.
Asia’s love-hate relationship with the bitcoin and other cryptos.
Back in 2014, the Chinese government ordered banks and other companies to close down bitcoin trades for a period of two weeks, in order to carry out some research. In February of this year, a few bitcoin exchanges were shut down in China.
In the period between September and October, there was a lot of uncertainty in the Chinese market in regards to ICO’s. The government had apparently outlawed them. Which caused a lot of the bitcoin and cryptocurrency capital to flee towards Japan.
Japan, as a matter of fact, has made cryptocurrencies mainstream. The Japanese government actually legalized bitcoins earlier this year. The goal of the high-tech government is to promote the cryptocurrency and Blockchain industries while taking advantage of its strengths. However, Japan promises to keep a close eye on the crypto ecosystem that is developing within the borders of its country
Meanwhile, South Korea outright banned all new cryptocurrency sales.
The regulations pertaining to the bitcoin, cryptocurrencies, ICO’s, and Blockchain technology vary across borders. One thing is for certain though, the market is developing and government bodies are simply watching out for their citizens.
Readers, you must understand one thing, cryptocurrencies and their market is extremely volatile. Of course, the industry cannot be regulated fully, yet, it can be made safer.
Expect a future post pertaining to cryptocurrency regulations of other regions such as South America, Africa, etc.