How Governments Try to Control Cryptoworld

With the all-over-the-world hype around cryptocurrency phenomenon including huge transactions amounting hundreds of millions in USD equivalent daily and ICOs raising USD millions of dollars. And nobody says the government what they do! That is the worst thing for every government in the world: when somebody earns and spends money without not giving them their share! Money laundering, fraud, forbidden goods trading – it also happens when a government loses something from its sight. Cryptoworld is totally out of control.

This all led to the negative reaction: one after other governments started to express the intentions to ban or to strictly limit the cryptocurrency transactions. For example, such countries as Bolivia, Ecuador, Bangladesh, and Nepal can fall under criminal law for use of the cryptocurrencies. The most recent – using Bitcoin as a payment method in Vietnam will lead to a fine of USD 9 000. The other countries also were in a different extent of hostility to the cryptocurrencies, it just didn’t come to a logical end.

But the first distrustful mind seems to be changing to favorable. Well, that is obvious: if you can’t confront something, take a lead above it. Not a long time ago Bitcoin was considered as a currency of drug dealers, weapon traders, and other deep web inhabitants. Whereas now huge institutional investors are discussing investing in blockchain-based technologies and cryptocurrencies on their strategic meetings. The only one thing that warns them – is the absence of regulation. And here the governments appear to provide more stability to the sphere.

But now the vision of cryptocurrency regulation and legitimation differ from country to country. For instance, in Turkey, they plan to control the internal flows and to force cryptocurrency holders inside the country to disclose their personal data. On another side, South Korea wats to equate cryptocurrencies to commodities and to extend the relevant law to this sphere. In Russia are even going to try to control the process of circulation and mining (totally excited how they are going to do that).

Anyway, it doesn’t change the fact that in most of the countries (especially developed countries) cryptotransactions are totally free to use, legal limitations only refer to huge buyers and ICO projects. But some countries consider it as a payment method subject to taxation. Among such countries – Israel, Norway, Sweden, Germany and some others.

But there’s the country I would like to stand and clap to is Australia. These guys are the most adequate in attitude to cryptocurrency and blockchain among all the others. Fact #1: they don’t consider regulation of turnover and payment, but only the anti-crime and anti-fraud measures. Fact #2: they are planning to pass the law supporting fin-tech startups (mainly linked to the crypto world). And the last, but my favorite – they passed the law that kills double taxation in Bitcoin transactions. Beautiful. When is the next flight to Sydney?

However, Bitcoin is still not big enough to be considered by high-level regulators. Mario Draghi, ECB chief, says that cryptocurrency sphere and technology behind it are not mature enough to get under his subject institution’s regulations. Well, Mr. Draghi’s words prove that despite the general excitement and worryings about blockchain world, it still has to go through a long path to establish itself as a stable and reliable financial method to be respected by such big guys.

I think, that the whole process of legal recognition on the governmental level will finalize by the end of next year, a year more will have to pass for international organizations to accept it. I’m extremely excited to know what will be the first internal and external blockchain transaction on the governmental level, but I’m convinced that it will happen in less than 2 years. By that time the cryptocurrency market will be established, stabilized and rationally regulated, allowing huge investors to consider it as a natural part of their strategy. Reed more.

Follow me in social media:

Leave a Reply

Your email address will not be published. Required fields are marked *