Regulation of cryptocurrencies is a very controversial and tricky question and a subject of hundreds of heated debates that are taking place right now all over the world. Thus, while some countries decided to give a green light to cryptocurrencies, others are trying to ban them in all possible extensions.
Let’s talk about recent updates in crypto regulations in different countries and discuss what should we wait from governments in foreseeable future?
Thailand calls to strengthen crypto regulation
On 6 of November the Deputy Prime Minister of Thailand, Wissanu Krea-ngam, suggested that governments should strengthen the regulations on cryptocurrencies. Minister claimed that new measures must be introduced both domestically and internationally in order to keep up with new tactics and threats to consumer security. Wissanu Krea-ngam also noted that the current regulation allows criminals to use cryptocurrencies for terrorism funding or money laundering.
Thailand is actively participating in creating cryptocurrency regulation and is among several countries that have already developed and adopted sustainable policies for regulation of digital assets. However, it looks like the country is aiming to take control over cryptocurrency transactions.
France is about to ease tax regime for cryptocurrency owners and traders
According to the Reuters report, The French parliamentary finance committee of the lower house supported the plan to ease the tax burden on operations with cryptocurrencies and adopted an amendment to the draft law on the country’s budget for 2019.
Now, if the upper house accepts the amendment, then next year, crypto owners in France will pay less for their digital assets. In case of the positive decision from January 1, 2019, the tax for owners of digital assets will decrease from the current 36.2% (fixed tax 19% + social security tax 17.2%) to 30%. In this case, the tax will be fixed.
France is a good example of the attitude to cryptocurrencies from European countries. Most of them decided not to ban rather equate cryptocurrencies to assets and securities and oblige them with the high tax rate.
China and India remain negative to cryptocurrencies and ICOs
Unfortunately, two world biggest countries — China and India — which earlier both banned all cryptocurrency operations and exchanges still remain negative on crypto. It even looks like that the situation is getting worse.
Thus, several days ago People’s Bank of China (PBoC) expanded sanctions against the cryptocurrency. The central bank intends to put an end to airdrops, free distribution of cryptocurrency tokens, as stated in the published PBoC financial stability report.
India, in its turn, currently holds government discussions about the possibility of banning the use of private cryptocurrencies following former ban of cryptocurrency exchanges.
Overview of the situation
To sum up, it is obvious that the situation with crypto regulation for how is a mess. It looks like that the governments and financial institutions either don’t have any idea of how to deal with digital assets or simply can’t find a compromise that would be appropriate for all sides.
From that point of view, it is too early now to talk about real cryptocurrency adoption on a global scale.
However, utility tokens still serve as a possible solution in that case. The most important thing here is that they do not pretend to be money while can be used for multiple purposes.
As for regulation, still, the situation is changing, maybe not as fast as we want. There is no doubt that sooner or later we will see a real regulation for cryptocurrency on a global scale!
