Stance Of Governments Around The World On Cryptocurrencies

What Are Government Doing Concerning Cryptocurrency

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  • Governments have taken various stance on Cryptocurrency
  • However, no concrete cryptocurrency regulations has yet been made.

Though governments around the world are taking various position concerning cryptocurrency, though some look favorable, while some has in a way affected the crypto world negatively, but none seems like a direct regulation on cryptocurrency yet. These approaches from governments are diverse, ranging from a largely hands-off system in Switzerland, a massive crackdown in China and an exchange-licensing regime in Japan and. Yet some nations, especially the US, have yet to formulate a comprehensive strategy. However, generally, oversight is increasing, this can be seen by the desire of finance ministers of the G-20 nations towards discussing a common approach to digital currencies at a meeting in Buenos Aires on Monday and Tuesday. The outcome will help in determining whether the boom experienced last year in the crypto world was just a flash in the pan, or the beginning of something bigger.

But what exactly is the concern of governments concern about cryptocurrencies. The list is long, encompassing: illegal initial coin offerings, money laundering, tax evasion, cyberthefts, exchange outages, excessive speculation etc.

Also read: Tencent Denies $2 billion Ripple Investment Plans

Mark Carney, Governor of the Bank of England recently warned of cryptocurrency “anarchy” which would occur if a coordinated regulatory approach is not taken. Had bitcoin and other cryptocurrencies stood on the far fringes of finance, these risks might have been easily overlooked by authorities, but cryptocurrencies a really moving closer to the mainstream. The stakes are increasing now that everybody are joining the crypto bandwagon. An addition to the challenge is the question of how to define digital currencies, with little agreement on whether they should be treated as actual currencies, commodities or something entirely new.

The US has not yet developed a broad regulation for crypto trading, though this may change if lawmakers give federal agencies more authority, however, presently regulators are taking a piecemeal approach. The US SEC has focused on policing ICOs and has taken a tough stance when it comes to approving exchange-traded funds and crypto-related mutual. While the Commodity Futures Trading Commission allowed two of the world’s biggest exchanges to list Bitcoin futures in December, arguing that the move would help it gain insight into markets where the cryptocurrency is traded. That same month, the CFTC is said to have subpoenaed one of the largest spot trading venues.

China, which use to be the world’s most active bitcoin market, has taken the toughest stance among major nations by banning both ICOs and crypto exchanges, and recently targeting platforms that permit local trades on overseas venues. Japan chose a more accommodating path, introducing a law that resulted in 16 licensed trading venues. However, in early March, Japan cracked down, and penalized six crypto exchanges and told another to revise its management structure among other changes. South Korea, has tightened some trading rules as authorities hammer out comprehensive legislation. The EU’s markets authority has warned about the dangers of investing in cryptocurrencies. French authorities are clamping down, while Switzerland’s economy minister wants to create a “crypto nation.”

At the meeting of the G-20 finance ministers, one likely topic to be addressed is what Carney has called a “major underlap” in regulation.

We will update you soon with the outcome of the meeting

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