The Regulatory/Legal Environment

in #blockchain5 years ago

Hello!

My name is Vladimir Hovanskiy. I am a Google Adwords manager at Platinum. Our team is the number one market player in providing ICO and STO services. Learn more on our site:

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We are also a part of the UBAI, the most unique educational project ever online. This institution is a depositary of priceless information on crypto-economics. Would you like to know about different cryptocurrency regulations in major countries? Follow the link to study the first part of our lesson:

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The different Regulatory and Legal environments of countries around the world present one of the greatest challenges to the blockchain industry. There is a stark difference in legislation, sentiment and attitude toward the blockchain industry among the different countries in the world. We will discuss the core differences between major countries, and their regulatory attitude toward every aspect of the cryptocurrency industry. We will consider the personal and company level differences in taxation between different countries for each party in the blockchain industry. We will also explain which may be the most accommodative country to base your ICO.

Objectives
By the conclusion of this lesson you will have learned the following:

The different Cryptocurrency regulations in major countries.
The regulatory and legislative attitude taken toward ICOs and Blockchain businesses in different countries.
⦁ A summary of the adoption of cryptocurrencies by different nations, and how their attitudes have evolved over time.
⦁ Taxation of cryptocurrency transactions in the countries considered.
⦁ The advantages and disadvantages of various countries from the perspective of where to base your operations and activities.
⦁ Successful ICOs that have originated from the specific countries considered.

Cryptocurrency Regulations across Major Countries
1.1 Introduction

1.1 Introduction
Cryptocurrency and the blockchain industry may seem sufficiently exciting and attractive to you now. After all, you are taking the time and effort to study this course. You may be planning to work in cryptocurrency and the blockchain industry. Of course, we want to encourage you and help you proceed toward your goal. But it is also important you understand the regulations guiding the blockchain industry to help keep yourself out of trouble.

This year, in particular, seems to be the year in which a lot of countries are looking to finally coalesce the regulations relating to the blockchain industry into a workable legal framework. Some countries are more accommodating to cryptocurrency and blockchain technological innovations while others are still more cautious.

We will examine how each major country is forming their own regulatory framework for the blockchain industry.

1.2 The United States of America (USA)

1.2 The United States of America (USA)
There are certain laws regarding transactions in virtual currency in the US today but there is still no comprehensive legal framework.

The Commodity Futures Trading Commission currently regulates virtual currencies as commodities. The CFTC is the first US regulator to allow for public cryptocurrency trading.

The Securities and Exchange Commission requires registration of any virtual currency traded in the US if it is classified as a security (e.g. by the Howey test).

1.2 The United States of America (USA)
The regulatory authorities have not yet formulated or offered a coherent framework for regulations regarding cryptocurrencies.

Typical of most legislators and regulatory agencies in the US, the Securities and Exchange Commission (SEC) has intensified its focus on the pressing need for comprehensive regulation. And it seems everyone is waiting for the right catalyst to coalesce into a usable set of legal guidelines that can protect the investing public and also allow for blockchain and cryptocurrency innovation as well.

Learn more on successful ICOs that have originated from the specific countries after buying the full course!

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1.2 The United States of America (USA)
If cryptocurrency becomes a form of legal tender in the US, there will likely be stringent laws on its use. However, if cryptocurrency is treated like a security, cryptocurrencies would be regulated under securities law as interpreted by the SEC. Present securities laws place a large number of limitations on who is able to buy securities, how they are traded, and how to ensure transparency in the flow of information relevant to investors.

Also note that non-US investors may experience their own difficulties getting a license to trade cryptocurrencies in the country.

1.3 Canada

1.3 Canada
Cryptocurrencies are not considered legal tender in Canada.

This was clearly expressed by the country’s Financial Consumer Agency (FCA). Canada, like the US, has yet to clearly define or legislate a framework surrounding cryptocurrencies. But Canada still appears to be among the most transparent of countries for the nation’s interpretation and enforcement of the law surrounding cryptocurrencies (aside from Switzerland).

For the time being, Canada has clearly stated its reluctance to adopt cryptocurrency as a legal tender, due to its high volatility.

1.4 Japan

Japan has always been one of the most positive and forward-thinking nations regarding cryptocurrencies and the blockchain. Of course, they were cautious at first, and they knew no more than anyone else in government, which means they literally knew nothing. But they took time to research, learn, and develop an approach to regulate the industry without killing it. The official policy is clear: Protect the public interest, but also encourage the growth of the industry with a legal framework that allows for innovation in blockchain and cryptocurrencies.

1.4 Japan
Did you know? It is not uncommon to see Bitcoin and other cryptocurrency ATMs throughout Japan.

Exchange robberies and hacks like MtGox, and the recent loss of $530 million NEM coins have led to serious debate in the Japanese government. The industry needs to provide a secure and manageable solution to these problems. Voluntary self-regulation and close cooperation with regulatory authorities is the most favored solution. It seems the regulators are working hard behind the scenes right now leading the industry in the desired direction in typical Japanese fashion.

1.5 China

The situation in China is a sad one. The country has been taking increasingly strict actions to discourage and outlaw any activity related to the blockchain industry.

1.5 China
China has banned ICOs, frozen all accounts associated with cryptocurrency, stopped bitcoin miners and even ordered a nationwide ban on all forms of cryptocurrency trading.

China has the strictest laws against cryptocurrency. Yet, despite that fact, as of 2017, 50% of the world’s mining population was from China! If you are involved with the cryptocurrency industry it is strongly advised to stay away from China, and avoid transactions with Chinese business because of the unpredictable and negative legal framework.

1.6 The United Kingdom & European Union

1.6 The United Kingdom & European Union
Brexit is scheduled to take place in March 2019, yet the UK and the EU still remain united in their regulatory attitude toward cryptocurrencies. There are also reports that the UK and EU are planning to end anonymity for cryptocurrency traders.

The UK and EU are both trying to control all the scams and frauds. They are working with cryptocurrency platforms to stop or at least report all suspicious transactions. This adds a degree of regulatory burden on the exchanges as well as increasing the associated compliance costs.

Cryptocurrencies are extremely volatile. They are a high-risk investment. Governments across Europe are greatly concerned about the possibility of both retail and sophisticated investors losing a lot of money.

1.6 The United Kingdom & European Union
This has led to a situation similar to that in the US.

The regulatory authorities have not yet formulated or offered a coherent framework for regulations regarding cryptocurrencies.

There is an intense focus on the pressing need for comprehensive regulation. And everyone is waiting for the right catalyst to coalesce into a usable set of legal guidelines that can protect the investing public and allow for blockchain and cryptocurrency innovation as well.

We certainly hope for intelligent and effective legislation from all the major countries.

1.7 Accommodating & Unaccommodating Countries

1.7 Accommodating & Unaccommodating Countries
Below is a list of countries we have not specifically covered, but they have each taken an active position on a regulatory framework for cryptocurrencies.

The following countries are either supportive or at least neutral toward cryptocurrencies:

Switzerland.
Australia.
Nigeria.
Ghana.
South Africa.
Singapore.
Countries with the most stringent and negative cryptocurrency regulation:

Venezuela.
South Korea.
India.
Russia.
Learn more on successful ICOs that have originated from the specific countries after buying the full course!

Get your free course!

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