Cryptocurrencies are the new money of this digital era. However, there have always been issues revolving around its acceptability and the regulatory authorities considering the blockchain technology as a boom while neglecting digital currencies due to their independent nature of transactions. Below is a rundown of what major countries think of cryptocurrencies now a days;
The European Securities and Markets Authority, which coordinates standards across member states, has proposed restrictions on derivatives tied to virtual currencies for retail investors, and is also assessing how the EU’s new MiFID II rules apply to digital assets. One regulation that’s already in the pipeline: platforms that exchange virtual currencies for conventional money will soon have to verify the identity of their customers.
Russia’s finance ministry reveiled drafted legislations for cryptocurrencies since January while allowing ICOs and the exchange of virtual currencies into the traditional sort.
Most of the world’s cryptocurrency trading takes place in this tech-savvy region, with Japan playing a dominant role after it introduced a licensing systems for digital-asset exchanges last year. In Hong Kong, regulators have adopted a more hands-off approach while at the same time warning crypto platforms to refrain from trading anything that qualifies as a security without permission.
China, once a global hub for cryptocurrency trading, now leads the world in cracking down. It has outlawed digital-asset exchanges and ICOs, blocked online access to overseas trading platforms and cut off power to Bitcoin miners. South Korea, which became a hotbed of cryptocurrency activity last year, is also tightening oversight as it works on a comprehensive set of regulations, though it has allowed exchanges to keep operating for now.
In India, where crypto-mania has been relatively subdued, the government has said it doesn’t consider digital currencies to be legal tender and finally after the Reserve Bank Of India’s announcement, declared to ban cryptocurrencies and related business from the country.
Most cryptocurrency trading in the U.S. takes place in a legal gray area, a point highlighted by the nation’s two top market watchdogs in testimony to Congress in February. Still, the Securities and Exchange Commission has been scrutinizing everything from ICOs to cryptocurrency hedge funds and trading venues. How exactly it plans to crack down on the industry remains to be seen.
In Canada, regulators have said that ICOs may be treated as securities and that products linked to cryptocurrencies should be considered high-risk. At the same time, the country’s stock exchanges have become popular destinations for crypto-related stocks and exchange-traded funds.