Before governments got involved, it was still hard to get into Bitcoin. Today, policymakers are now taking up swords and putting up new regulations on anything regarding Cryptocurrencies. This has mainly affected initial coin offerings and Bitcoin exchange sites. It has become a daunting task for regulators, figuring out which token is legal or not.
Even as crypto is becoming more global, the rules governing it are not entirely collective. They vary depending on country and authority, thanks to a lack of universal coordination. Nevertheless, this may change especially upon the conclusion of the current G20 summit talks in Buenos Aires. Cryptocurrency is among the top agenda in the debate. But as we wait, there will still be opinions on which way to go in regards regulations.
Below we have reviewed how different countries are approaching the Bitcoin issue:
The continent dominates with the most crypto tradings at the moment. Japan being at the forefront, took a broad move and introduced a licensing system for their digital asset.
On the other hand, in Hong Kong, authorities are adopting a familiar method, the hands-off approach. At the same time, the regulators have warned platforms dealing with crypto to refrain from trading anything regarding security without permission.
As for Singapore, their deputy prime minister deems Cryptocurrencies as merely an experiment. Perhaps not strong/ risky enough to consider prohibition. As this happens, Philippines are in the process of evaluating the whole crypto business and are expected to roll out rules regarding ICOs by the end of the year. Taiwan authorities prefer to wait and see.
In China, things get interesting. Once a leading hub for crypto trading, and now on the opposite edge – cracking them down. The Republic has blocked access to overseas platforms, outlawed all exchanges and ICOs and even cut off power to Bitcoin miners.
South Korea is working on an oversight authority with comprehensive policies and regulations on the trade. India, on the other hand, is in the process of curbing crypto usage.
The security exchange commission has been scrutinizing the trade for a long time. It is not exactly clear how it plans to regulate or crack down the industry.
Canada, on the other hand, has said that although products related to crypto are high risk, ICOs may be treated as securities.
Europe has its trading block reviewing existing rules on the trade and proposing new ones. One regulation that will sure hit the industry is that exchanges will soon have to verify the identity of their customers.
As the UK is generating more regulation and policy frameworks, the French are looking for strict reporting and business conduct standards.
In Africa and South to be precise, the central bank is still investigating a proper policy framework for regulation. Zimbabwe, on the other hand, has warned its authority of money laundering, tax evasion, terrorist financing and fraud associated with digital currency
As for Kenya, Bitcoin is growing in popularity, regardless of warnings by officials. Nigeria would prefer Bitcoin to gambling. Although they are not regulating, they are likely to start in the foreseeable future.