In the last couple of months, we have watched cryptos take a plunge, but even with the price fall, there has been improvement around the world within the community when it comes to regulations.
The G20 which is an update we all have been expecting because it reflects a unified agreement about the cryptocurrency regulations will only officially present a regulation project by October 2018.
The EU has continued to actively research the possibilities for regulations and understanding all the risks involving cryptocurrencies, and countries like Malta and Switzerland are in top-rank positions as some of the cryptocurrency hubs at the moment.
New laws have been applied in Australia for digital currency exchanges (DCE) by AUSTRAC, Australia’s financial intelligence agency and anti-money laundering and counter-terrorism financing (AML/CTF) regulator. Found the in Australian Government Website.
You can find all the new laws, requirements and how to register your digital currency exchange business here: DCEAUSTRALIA.
The EU recently published an in-depth analysis of the cryptocurrencies (VCs), and all the challenges central banks will face ahead. The analysis of the outcome of embracing virtual currencies also shows the benefits of the new technology in the financial sector, and how it would be unintelligent to reject it.
“Virtual currencies are a contemporary form of private money.
Thanks to their technological properties, their global transaction
networks are relatively safe, transparent, and fast. This gives them
good prospects for further development. However, they remain
unlikely to challenge the dominant position of sovereign
currencies and central banks, especially those in major currency
areas. As with other innovations, virtual currencies pose a
challenge to financial regulators, in particular because of their
anonymity and trans-border character.
This document was provided by Policy Department A at the
request of the Economic and Monetary Affairs Committee.”- Abstract of the Analysis
In the 33-page analysis, the EU has urged regulators not to ban cryptocurrency as it is the future of money, they explain the essence of cryptocurrency and the importance of coming together to regulate it as best as possible.
Banning it will only slow down an inevitable process, and the main problem with rejecting the technology is that as it advances these countries will be in disadvantage and will have to try to keep up.
Bitoasis tries to develop an agreement with the Gulf Cooperation Council (GCC) regulators to regulate cryptos in Saudi Arabia which has banned cryptos.
“The committee assured that virtual currency including, for example, but not limited to, bitcoins are illegal in the kingdom and no parties or individuals are licensed for such practices.” — a statement issued by the Saudi Arabia Capital Market Authority, Ministry of Interior, Ministry of Media, Ministry of Commerce and Investment and the Saudi Arabian Monetary Authority. (Via Bitcoin.com)
Bitoasis is the first virtual wallet in the Middle East that uses multi-signature tech to protect digital currencies. This company is working on coming into an agreement to regulate cryptos with Saudi Arabia where cryptocurrencies are considered illegal inside the kingdom which members are, Bahrain, Kuwait, Oman, Qatar, Saudia Arabia, and the United Arab Emirates.
China also has restricted trading entirely.
Russia which had banned cryptocurrency at first now considers the satoshis as property according to Russia´s Justice Minister Alexander Konovalov. And the cryptos are to be referred to as digital money.
“If cryptocurrencies are to develop, additional regulation will be necessary. The main point is to ensure that all this does not grow into financial pyramids,”Konovalov added, quoted by Prime. (Via Bitcoin.com)
According to The Korean Times, South Korea which had not been very friendly towards digital currencies is now shifting to better embrace cryptos due to a better understanding of the technology given by the G20 in the effort of putting together a unified regulation policy which they have been working on.
The essence of bitcoin and altcoins seems to defeat the purpose of regulations, yet we are working hard to put in on a leash and according to some, it is possible to do so without disrupting the essence of the technology in the first place.
When bitcoin became a legit digital currency through the use of blockchain, the reason it even came to life was that people no longer wanted to trust third parties with their money as proposed by Nakamoto.
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts”- Satoshi Nakamoto
So the regulations we are all eagerly awaiting for seems to, again, defeat the purpose of the initial proposal of the Bitcoin.
Countries, banks, governments cannot control the digital currencies, and by trying get right back to step zero.
Regulations are good, too much regulation is not.
“Bitcoin Regulation doesn’t matter!” -Andreas Antonopoulos — The Open Blockchain Expert. He continues on his Youtube video by saying regulating cryptocurrencies is impossible, and that Bitcoin does not care about all the regulations because it cannot be affected by any of them.
The U.S. has a new association called Virtual Commodity Association (VCA) and Bitstamp, Bittrex, Gemini and Bitflyer USA are only some of its members. Their main is to establish a framework in the industry´s self-regulatory system. Their first meeting will take place in September, 2018. According to Businesswire.com here is a list of the topics which will be covered in this meeting:
· Guidelines for membership in the VCA.
· Guidelines for best practices and rules-based marketplaces that will promote fairness, transparency, risk management, and liquidity.
· Guidelines for best practices that will address Member conflicts of interest, client communications, client disclosures, and record keeping.
· Staffing the VCA, to include an Executive Director, among others, and composition of the Board of Directors.
“We’re proud to be a part of the Virtual Commodity Association as a way to add another element of protection for consumers,” said Nejc Kodrič, Bitstamp CEO
“Regulations in the cryptocurrency space are evolving to encompass this new technology. Industry leaders with extensive knowledge and who are impacted by regulations should really be part of the conversation,” said Hailey Lennon, bitFlyer USA’s Director of Compliance
“The blockchain industry must focus on protecting its customers and operating in a responsible manner to significantly increase adoption globally,” said John Roth, Chief Compliance and Ethics Officer at Bittrex.
The VCA Working Group Contact: firstname.lastname@example.org
Bitcoin and many of the coins existing today may not exist in the next couple of decades, none of us know for sure, but the technology is indispensable.
Governmental entities and central banks must understand the technology, the concept of the evolution it implicates; it is not about accepting or even liking Bitcoin or Ethereum.
In a generalized way we may say that the technology is advancing and that even with all the chaos from the price fall companies are still investing in learning, and educating others about the technology.
Would you agree (or disagree) that in this transitional period many are getting caught up on the acceptance of bitcoin or any other altcoin per se, instead of focusing on what the actual technology represents?
The year of 2018 has been thought of as the year cryptocurrencies would be regulated. We are now close to the end of the year, what are your thoughts on it?
If you have any news on regulating cryptos from your region on country please share in the comments.
We appreciate your collaboration,