Welcome to the latest update in our series of articles dedicated to the legal compliance of the CINDX project. CINDX is taking every necessary measure to obtain the required legal papers to create a firm basis for future success.
Although cryptocurrencies have been introduced to global markets quite recently, they have already made a significant impact on the modern financial world.
However, due to their decentralised nature, cryptocurrencies pose a specific threat to the world economy, which is still tied to the US dollar. Because cryptocurrencies don’t belong to any centralised institution, they could theoretically jeopardise the economic dominance of the United States.
Cryptocurrencies have been created to provide an anonymous method of making digital transactions. While the average user may appreciate the privacy that cryptocurrencies offer, their anonymous nature also means that they could be utilised for money laundering, funding terrorist activities, or the illegal trade of drugs and ammunition.
Because of this, some countries (i.e. Algeria, Bolivia, Ecuador, Bangladesh, Nepal and Macedonia) have banned the use of cryptocurrencies within their borders.
Meanwhile, others have decided to develop more flexible regulatory policies regarding cryptocurrencies, resolving the issue of illegitimate use with mandatory licensing requirements.
One of the pioneers in regulating cryptocurrencies is Japan. The country has legally declared more than 30 digital currencies as financial instruments, including Bitcoin and Ethereum. “Financial instrument” status means that these digital currencies can legally be used for buying and selling goods, as well as investing and currency exchanging activities.
The central question, however, is what the benefits of licensing are for clients.
There are, in fact, a number of them:
1) Higher transparency and reliability. In most places in the modern financial world, the requirements for obtaining the necessary licensure to operate within the crypto space legitimately are relatively strict. For example, in Estonia, it is obligatory to provide comprehensive criminal records for all persons involved in a cryptocurrency firm, including shareholders, board members, ultimate beneficiary owners, and responsible individuals. Thus consumers’ interests are strongly protected by law.
2) Beneficial tax systems. In some countries, such as Estonia, legalisation of virtual currencies goes hand-in-hand with very lenient taxation. For example, cryptocurrencies are not subject to VAT or income tax in Estonia. This is, in fact, beneficial for both customers and companies, as they end up paying far less compared to the market of conventional currencies.
3) Industry development. The factors mentioned above attract businesses and customers alike, boosting the crypto markets at large.
Although the cryptocurrency market generally remains impossible to control truly, there are a few legal factors that can influence it to a certain extent. Obtaining licenses is merely an example of companies’ efforts to make their activities more transparent. CINDX stands out as an industry leader in compliance and transparency with its dedication to providing the most reliable service possible by keeping to the letter of the law.
Our company in Estonia has received Crypto Currency Exchange License. This allows CINDX to provide fiat-to-crypto exchange services. This licence is issued by the Estonian Financial Intelligence Unit (FIU), which is an independent structural unit of the Estonian Police and Border Guard Board.
As a legally-recognised organisation with a professional and knowledgeable team, we will be happy to help you get acquainted with the world of virtual currencies and glean the maximum amount of benefits from it. If you are ready to dive into the most revolutionary financial trend of this decade, join our platform and become a part of the force that is shaping the future of cryptocurrency and the global financial sphere.
About CINDX
CINDX is an investment platform that allows its users to combine several crypto exchange accounts into one trading terminal, and gives them the option to copy the best managers without having to transfer their funds.
Moreover, implementation of blockchain-based transactions on CINDX will allow its users’ trading history to be saved. A reputation rating system will be used to differentiate the successful managers from the less-successful ones.
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