The cryptocurrency market is quite a tricky matter to deal with. Thus, the world was shaken by the hacking attacks in 2018 that led to millions of dollars to vanish from the accounts of users across the world. Thus, governmental bodies of various countries understood the need for creating a regulatory organization that would somehow control the operations of the industry.
Is it that simple though?
There are definitely some aspects that might interfere with the total control of the regulatory organizations over the operations of the cryptocurrency market. That might be explained by the fact that the market, as well as the whole concept, is relatively new. Therefore, there are just not enough human resources that might deal with arising issues and monitor the validity of operations. Moreover, in order to control something, you need to understand the essence of the process, right? And the process of the cryptocurrency mining, as well as the blockchain creation, is really complicated. Thus, powerful machines and computation powers are needed in order to ensure the process goes legitimately and smoothly.
All of that means, that the governments need to come up with the structure that will be efficient and valid, and they need to do that from scratch. As nothing like that was done before. That is always hard and complicated.
But, some countries decided to choose the easiest way, one of those might be China. They have decided that is they can’t fully control something, they can simply ban it. Well…for each its own, right?
Now let’s start looking into each regulatory body of different countries.
The United States
When it comes to the United States, the whole legislative regulation system is quite tricky and frustrating. As sometimes, some decisions might be made on the state level. Meaning that some things might be legal in one state and illegal in another.
Notably, the Securities and Exchange Commission has declared the cryptocurrency to be securities, and, thus, it needs to undergo serious reviews in order for the ICO stage to take place. The organization took severe measures and decided to even create a fake ICO that would warn people about the danger of creating accounts on the untrusted platforms.
The Commodity Futures Trading Commission (CFTC) is more lenient with the cryptocurrency. Moreover, the main Commissioner of the organization, J. Christopher Giancarlo, is an advocate for the cryptocurrency to be largely implemented into day-to-day life.
Meanwhile, US Treasury Deputy Director, Sigal Mandelker, stated that the USA shall implement the same policy China once did and ban the cryptocurrency on the territory of the country.
But things got even more complicated after the IRS organization officially imposed taxation on the operations undertaken with the cryptocurrencies.
That is definitely the most liberal Asian country when it comes to the cryptocurrency. However, it shall be noted that it is most favorable to the Bitcoin, as it is a bit more stringent with other altcoins. Especially after a recent hacking attack that led to over half a billion dollars being stolen from the accounts of investors.
The majority of the EU countries decided not to implement the strict policy like China did, and try to find options that would allow the cryptocurrency market to operate safely and effectively.
Therefore, Valdis Dombrovskis, the vice president of the European Commission, proclaimed that it is of utmost importance to find the way to protects investors and consumers and make sure the possibility of operational and security failures are driven to the minimum.
Moreover, Bruno Le Maire, the French Minister of Economy, has also noted the importance of creating a regulatory framework for the cryptocurrencies, that will work as a working tool of control and protection.
That is another Asian country that decided not to take harsh actions like China, and try to find a better solution first. Notably, South Korea is the country with a large number of cryptocurrency exchanges operating there.
However, certain restrictions were still implemented by the government, the trading from anonymous accounts was prohibited. That is actually a wise thing to do, as that was it became possible to limit the money laundering.
Moreover, there is also something keeping the government from implementing extreme regulatory measures, and that is the voice of the public. Thus, approximately 280,000 people have signed an official petition that was stating their desire for the government not to implement severe limitations on the cryptocurrency operations within the country.
And, finally, we got to the one of the radical countries when it comes to the cryptocurrency. That was one of the first countries that have officially declared the prohibition of any operations connected with the cryptocurrency. That even made some companies to relocate their headquarters to other countries, as their operation were partly, or fully, connected with the cryptocurrencies.
However, the Center of Information Industry Development keeps publishing the cryptocurrencies ranking. And some crypto optimists are seeing that as a hope for the cryptocurrency to be back in China one day.
Summing everything up, that is undeniably important for the governments to keep an eye on the cryptocurrency sector and make its best to protect their citizens from cyber attacks that are happening a little too often lately.