State of Regulation: Cryptocurrencies 国家法规:加密货币
Which countries are hostile, ambivalent and welcoming? 哪些国家反对，不确定和欢迎采用加密货币？
11 years since the appearance of cryptocurrency, governments around the world dare not turn a blind eye. Increasingly rare are the countries that have ignored the existence of cryptocurrencies. This new breed of money has divided the world into camps. On one extreme are the global advocates, providing support towards the technology with hands outstretched. On the other end, the hostile opposition throws blankets over cryptocurrencies.
Not my cup of tea
China: The governor of China does not recognise Bitcoin as a viable medium of payment. Since 2017, the Chinese government has banned ICOs, eliminated trading of virtual currencies, shut down domestic cryptocurrency exchanges. Adding to this list, the Chinese government is also looking to ban the mining of cryptocurrencies.
India: Once viewed as a friendly environment for cryptocurrencies, India imposed harsh bans on cryptocurrency-related activities in 2018, shutting down exchanges and barring banks from allowing credit card purchases of cryptocurrencies.
While both countries take on a tough stance with cryptocurrencies, it is arguably a case of tough love and good intentions. The bans are measures of caution against concerns of money laundering, illegal activity proliferation, sponsorship of terrorism and tax evasion.
On the Fence
Hong Kong: Unlike China, the chairman of Hong Kong’s Securities and Futures Commission (SFC) has ruled out a total ban on cryptocurrencies in favour of formal regulations. The Hong Kong government currently does not have a specific regulatory framework for ICOs, however, if an ICO in Hong Kong falls under the definition of a security, it may constitute a regulated activity overseen by the SFC.
Singapore: The Lion City has experienced an ICO boom in recent years, hosting some of the biggest ICOs in the world like Digix, TenX, Consentium and Kyber. While the Monetary Authority of Singapore has issued warnings to eight Cryptocurrency exchanges, it has no compelling reasons to impose a ban and has packed away its blankets for now. Although Singapore seems open to cryptocurrency activities, it regulates stringently to protect investors and prevent criminal activities.
Evidently, both Singapore and Hong Kong are receptive to the future prospects of cryptocurrencies but take it with a pinch of salt. To protect their citizens’ welfare, these countries monitor the market closely before implementing harsh regulations on cryptocurrency.
Under this category, countries that are receptive to cryptocurrencies are Canada, Japan, The Netherlands and Germany. These countries are supportive of cryptocurrency activities, dedicating resources to legislation, infrastructure and even government projects. In many ways, they’ve become homeowners!
Deed of Ownership = Legislation
The deed of ownership entitles owners free reign to build their dream house. Similarly, the government’s legislation is a passing of laws that authorise access to cryptocurrency for its citizen.
Germany: Germany was the first country to recognise Bitcoin as private money back in 2013. To date, it is classified as a financial instrument under the German Banking Code.
Japan: In April 2017, Japan announced that Bitcoin and other digital currencies will be defined as financial assets under the Payment Service Act. The Act also states that there are no laws to unconditionally prohibit cryptocurrency transactions.
Both approaches by Germany and Japan allow their citizens to use cryptocurrency as a form of payment in the country, making it possible for them to enjoy the benefits of cryptocurrency.
House Structure = Crypto Infrastructure
The house structure determines the shape, size and features in the house. With a bigger structure, the owner can include more amenities and facilities into the house. It works the same for crypto infrastructure in a country. The planned crypto infrastructure (e.g., Bitcoin ATMs, Crypto Payment Systems) defines the boundaries of cryptocurrencies in the country.
Canada: It is easy to purchase cryptocurrency in Canada. The country has increased access significantly through the installation of Bitcoin ATMs around the country, including the capital city, Ottawa, and financial hub, Toronto.
The Netherlands: Did you know that there is a Bitcoin City in this country? Visit Arnhem for a taste of mass adoption. Retail outlets, restaurants and even hotels in Arnhem have payment systems that accept Bitcoins.
Bitcoin ATMs and crypto payment systems have enhanced the experience of citizens by making cryptocurrencies more accessible.
Furniture = Government Crypto Projects
Every homeowner undergoes a nesting period, where they slowly add in the finishing touches to their home. The furniture and decor complete the house and give it personality. Similarly, government cryptocurrency projects are pieces of furniture that reflect the tastes and lifestyle of its owner. The crypto projects are the government’s way of fully embracing cryptocurrencies.
Canada: Impak Coin is Canada’s first regulatory compliant ICO in August 2017. By approving a regulated ICO under their jurisdiction, Canada cemented its position as a leading crypto hub in North America.
Governments that support crypto projects or create their own national cryptocurrencies prove their desire to embrace the technology. Their level of dedicated involvement allows them to explore how this new type of currency can suit their needs.
Another Pinch of Salt
The above analogy explains how different countries accept the usage of cryptocurrencies in various ways. From implementing new policies to creating their own national cryptocurrency, countries can play a part to empower the cryptocurrency ecosystem.
Any simplified analogy comes with exceptions. Not all countries fit into the role of homeowners. Some countries might have the infrastructure without full regulations on cryptocurrencies.
In order for cryptocurrencies to be widespread, it’s important for more countries to play a supportive role in this technology. Hopefully, the time will come where we witness more countries being receptive to owning a HOUSE in the world of cryptocurrencies!
Disclaimer: This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to risk.
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