Updates on Global Cryptocurrency Regulation

We are living in the times of turmoil and uncertainty around the cryptocurrencies. Nearly every week a new country announces some potential revision to their crypto-regulation and it can seriously impact the exchange prices of nearly every coin.

This post summarizes the current state of the cryptocurrency regulation around the world, and examines how it can be potentially developed in the near future and how these regulations may impact the cryptocurrency market.

United States of America

The US has complicated the general use of Bitcoin, much to many adopters’ chagrin. Recently there were Bitcoin futures launched by CBOE and CME, yet it had little impact on the regulation. The US clearly defined the way people should report capital gains on the cryptocurrency trading and the methods used to tax such gains. So far the US allows each of the states to determine the regulation and licensing processes.

United Kingdom

The UK government has also not outright banned cryptocurrencies nor wholesale endorsed them. The government is currently considering how it can bring it into the “white” space. According to officials, today many criminals and terrorists are using Bitcoin to launder money or receive funding for illegal activities. Procedures that will eliminate the anonymity behind the cryptocurrency holders is under consideration. However, there have been some positive changes around the Bitcoin regulation in the UK.

The United Kingdom Gambling Commission (UKGC) has announced that it allows various regulated online casinos and betting websites to use BTC and other cryptocurrencies as a deposit method, and UKGC is happy to grant licenses to the BTC iGaming companies as per a topratedbettingsites.co.uk report. While these news may sound not too big, in fact the Bitcoin gambling is expanding very fast and this has been a very important regulatory update.

European Union

The citizens of European Union have always been enjoying a relatively large degree of freedom in many aspects of Bitcoin and other cryptocurrencies. And everything seems to be keeping pace, continuing as normal here. Even though banks in some countries like Poland, for example, are shutting down the accounts used to deposit and withdraw funds from Bitcoin exchanges, most of the EU member states embrace cryptocurrency.

This friendly posture toward cryptocurrency is especially true of the DACH (Germany, Austria and Switzerland) countries. Swiss authorities have stated that there is currently no need to have “cryptos” regulated, and until the regulatory guidelines are in place, people are free to use the Bitcoin and other cryptocurrencies as they like. In addition to this, the country has been quite welcoming towards crypto by preparing its infrastructure, like public transportation, to accept payments in cryptocurrencies. In addition to this, Switzerland in the home of the world’s first cryptocurrency fund.

Asia

Until now the regulatory environment in Asia is known to be quite unfriendly towards cryptocurrencies. Most Asian countries are clamping down on ICO projects, cryptocurrency trading, and sometimes even targeting citizens who own or mine cryptocurrencies. But what is still clear is that Asian authorities have quite a bit of work to do in order to come up with a policy that will be both useful and secure for the general population.

But there is one big exception: Japan. This country is one of the most open Asian countries towards cryptocurrencies. Even though it is not yet possible to open a bank account and deposit your bitcoins in a Japanese bank, the country does not prohibit such practices by the institutions that do not hold banking licenses. Because of Japan’s acceptance of cryptocurrency, they have the potential to enjoy an abundance of crypto-related innovation and business in the future.

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