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Regulation of Cryptocurrency Around the World

by Marquette Turner Luxury Homes

in Features, How to, Legal, Variety

With crypto currencies now being used to purchased real estate, it’s essential that we increasingly bring them into the conversation as crypto currencies, much like every other currency, has rules and regulations that govern them. This is true no matter where in the world they are found. It is important for people using or trading in these currencies to be aware of the rules that govern cryptocurrencies in their places of residence. This way, we protect ourselves as well as the country that we live in, against fraud and corruption.

Around the world – regulations that govern

  1. USA – it is difficult to find laws that govern cryptocurrencies in the United States, this is because they vary from state to state. The federal authorities in each state are not in agreement with the definition of cryptocurrency. It is not recognized as legal for tender but legal for exchanges. As confirmed by the Financial Crimes Enforcement Network, but as of 2013 it has been given the go-ahead as money transmitters.
  2. Canada – cryptocurrencies are not recognized as a legal currency for tender but are legal to exchange in Canada however the Canada Revenue Agency has begun taxing them since 2013. Canada has been actively trying to adopt cryptocurrencies and later on in 2017 the British Columbia securities commission had registered their first investment fund that only deals with crypto currency. 
  3. Singapore – In Singapore cryptocurrencies are not regarded as a legal tender however they can be used to exchange with no registration required. The city is more opened to cryptocurrencies and the tax authority in Singapore now regards bitcoins as goods. 
  4. Australia – In Australia, cryptocurrencies are regarded as legal currencies and can be exchanged provided one registers with AUSTRAC. Australia is progressing with their implementation of regulations for cryptocurrencies. 
  5. Japan – Cryptocurrency is seen as a legal currency in Japan and is regarded as property. People may use them provided they register with the Financial Services Agency. Japans regulations for cryptocurrencies are constantly and progressively evolving. 
  6. China – Cryptocurrencies are not a legal tender in Chin and are considered illegal. The Peoples Bank of China went to the extent of banning financial institutions from dealing with bitcoin transactions. 
  7. UK – In the UK there are no specific laws that govern cryptocurrencies like bitcoin and Ethereum. They have concerns regarding legalising cryptocurrencies such as ensuring that consumers are always protected when trading with this currency, tax, money laundering and various other crimes. 

Regulators around the globe have taken lots of time ensuring that they are on par with the latest technology. Regulators have lots to resist now as cryptocurrency is becoming more popular amongst people around the world. The developments in cryptocurrency has brought about many different responses from the regulators around the globe. Each of these regulators has considered the many facets of the crypto world from mining to trading and have thoroughly evaluated how they should be structured.

Areas which regulators have been considering

  1. Trading and exchange – regulations that surround these areas are relative to the way that cryptocurrencies are traded. There is much contention as to how cryptocurrencies should be classified: whether they are commodities or securities. Only after they have been correctly labelled, can they be regulated with pertinent laws. Many countries have already begun rolling out regulation for cryptocurrency in this area. 
  2. ICOs – Initial Coin Offerings (ICOs) is a means for companies to raise money and conduct business using a digital token to convert to cryptocurrency like bitcoin and ether. 
  3. Financial components – with the sudden upsurge of cryptocurrencies, investors want to get involved in this phenomenon. Although cryptocurrency has always been regarded as unsafe or risky due to various hacks and the unsafe methods of trading, there has been an urgency to bring financial goods that are regulated on the traditional market. 

The future of cryptocurrency

Since its inception, people believed that cryptocurrency would replace fiat money, especially now after a decade. Many people were on the notion that bitcoin was a currency for geeks and that it would not reach the mainstream. However, a decade later, bitcoin has proved itself and has thrived. Many people don’t feel safe enough to use bitcoin currently and its future cannot really be known however it is becoming increasingly more popular to buy things with this currency. For now, bitcoin is available in a relatively small supply and is not distributed fairly among people for it to actually reach its full potential. That being said, bitcoin has many positives and is one of the currencies that connect various people with the e-commerce biosphere. 

Author Box

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