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Government’s Approach to Cryptocurrency Regulation

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The initial coin offering (ICO) market is a global phenomenon. The industry has grown exponentially over the past few years to become worth billions of dollars in investment. You can visit this link to learn more information regarding ways to invest in Bitcoin. However, as these new digital currencies enter the mainstream and more people invest in them, governments worldwide are taking notice. Many governments have started regulating cryptocurrency exchanges and ICOs to protect citizens from potential scams or frauds associated with cryptocurrencies.

China

China has taken a hard-line approach to cryptocurrency regulation, banning exchanges and other trading platforms and mining platforms. The country also prevents using cryptocurrencies in payments, news coverage, and social media discussions.

China’s government has moved to ban crypto exchanges in the past year or so, citing concerns around money laundering and financial stability. It’s unclear whether this will be permanent or if China might relax its stance on digital currencies in future years.

Japan

Japan has been a pioneer in the cryptocurrency space. The country was one of the first to regulate cryptocurrencies and is a leader in the industry. The Japanese Financial Services Agency (FSA) started its inquiry into Bitcoin with an announcement from Japan’s Ministry of Finance on April 24, 2017, followed by new regulations on June 16 that year.

In September 2018, Japan’s Financial Services Agency (FSA) issued business improvement orders to Coincheck and two other exchanges after hackers stole $530 million worth of NEM cryptocurrency last January.

As part of their compliance with these rules, crypto-related companies operating in Japan have submitted applications for licenses through various regulatory bodies across different industries within their jurisdiction:

South Korea

South Korea is one of the largest markets for cryptocurrency trading, and its government has been trying to get a handle on the phenomenon.

In January 2018, South Korea banned anonymous trading on crypto exchanges from combating money laundering. It also banned ICOs (initial coin offerings), similar to IPOs for companies but used cryptocurrencies instead of stock instead of payment.

In September 2017, South Korea’s Financial Services Commission (FSC) raided UPbit, one of the country’s biggest cryptocurrency exchanges. The FSC accused UPbit of falsifying its balance sheets by inflating them by 300 billion won ($270 million). Business Insider said, “UPbit was suspected of faking about 90 percent of its digital asset volumes worth billions.”

India

India is one of the most crypto-friendly countries in the world today. However, there isn’t any official law on cryptocurrency regulation yet. It has been reported that some government officials are working on drafting a legal framework for cryptocurrencies.

With close to 1 billion people using a smartphone and the internet, India is also one of the fastest growing economies in the world. As such, it seems like an ideal place for cryptocurrency adoption because people can easily access it through their mobile phones without downloading any software or installing hardware wallets like Ledger Nano S or Trezor, etc.

Russia

Russia has banned Cryptocurrencies and the use of digital currency exchanges. The Russian government considers cryptocurrency mining “hazardous activities” that should be prohibited. The Russian Ministry of Finance has declared Bitcoin illegal on money laundering and tax evasion grounds.

Russia also banned Initial Coin Offerings (ICOs) in September 2017, citing concerns about their legitimacy and risks to investors. Furthermore, in late 2018 the country’s government announced plans to criminalize unlicensed cryptocurrency trading and wallet services to bring more criminal activity related to cryptocurrencies under control.

US

The US has not taken a definitive stance on cryptocurrency regulation, but it has shown signs of moving in that direction. The SEC was the first to warn investors about their concerns regarding ICOs and cryptocurrencies, which included Initial Coin Offerings (ICOs) being considered securities by the SEC. At that time, they said they were keeping an eye on all cryptocurrency exchanges and platforms operating in or out of the US and would take action if something like manipulation came up again.

Final Words

Governments are still playing catch up with Cryptocurrencies. It is no surprise that many countries are trying to regulate space, but it is surprising how many governments have taken a wait-and-see approach. However, online software such as bitcoin trading software is available if you want to trade in cryptocurrency. You can sell and buy cryptocurrencies online from anywhere in the world.

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