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From America to Russia, Canada to Japan: How Governments are imposing regulation on Cryptocurrency Businesses – Coinnounce

From America to Russia, Canada to Japan: How Governments are imposing regulation on Cryptocurrency Businesses

The cryptocurrency industry has seen broad growth in recent time, and it has endeared it to many across the globe. The growth of the industry has made it a top venture for many around the world. In contrast, many factors have been militating against its full adoption and forays into space. Topping the list of reasons is the suitable environment for a cryptocurrency business to thrive.

A suitable environment is pertinent for the success of any startup around the globe, which cryptocurrency venture isn’t excluded. Though the industry has grown over time, it is still at the budding stage, which deals with the level of acceptability. The type of room created for the cryptocurrency industry to flourish by a country will determine the level of adoption and its use, as well as the rate of crypto-related business ventures in such country.

The success of a venture in a country is determined by how accommodating a country is with appropriate regulations to guide the growth and development of the industry. Though citizens of many countries are interested in creating cryptocurrency ventures, many desires have often been amputated by unfriendly policies and regulations that have stifled and still stifles a conducive environment for the growth of the industry.

From the major world powers, which include, US, China, Russia among others, there is still massive indecision on how to adopt cryptocurrency as well as a friendly environment for the industry, however, there has been a consistent effort towards cryptocurrency adoption as each country aims at annexing the dividend that is entailed in the industry.

Crypto Legislation In The U.S.

The United States of America has been making efforts toward adopting appropriate legislation for the growth of the cryptocurrency businesses in the country in recent time. Since last year, the industry has witnessed concerted effort from the legislature of the United States of America to adopt friendly crypto regulations for the growth of businesses in the country. Nevertheless, there has been some advancement in the industry stimulated by the influx of crypto startups to more friendly countries such as Malta because of its cryptocurrency tax-friendly environment.

However, the subject of cryptocurrency friendly regulation in the US has a dichotomy, because the federal government is making efforts while the state governments are as well not left behind towards becoming a cryptocurrency hub. Though it’s still not right to say the United States is crypto friendly at the moment, efforts are underway to make the country a crypto-friendly haven.

However, recently, the Financial Action Task Force of which the United States is currently holding the presidency announced that it is all set to finalize the new standards in order to regulate cryptocurrency firms next month and it seems that the regulators will be pushing for the most draconian options on the table. Those standards will very likely make cryptocurrency exchanges, wallet providers and other related companies subject to something called the ‘Travel‘ rule which has long been followed by correspondent banks around the world. Due to which in addition to verifying and keeping records of their own user’s identities, exchanges and wallet services would have to pass customer information to each other while transferring funds just like banks are currently required to do.

Russia’s Stance on Cryptocurrencies

In a similar fashion as the United States of America, Russia is yet to make its stance known on cryptocurrency regulation, but in contrast, the country can be said not to be crypto friendly.

A year ago, Russia made efforts towards the implementation of legislation to guide the cryptocurrency industry. The process was aborted. Also, the President of Russia ordered the parliament to put crypto legislation into effect as from July of this year. Steps are underway for the fulfillment of this.

Russia may appear to be cryptocurrency friendly, and even rumor of a Russian state crypto project has been revealed recently, the country is repressive of the flourishing of crypto businesses. However, the country has adopted cryptocurrencies to fight a proxy war. Russia’s stance on the industry will be made known when the legislation is enacted in July 2019.

Recently, it was announced by the governor of the Central Bank of Russia that they might consider a gold-backed cryptocurrency for the country.

Japan’s Quest In Making Crypto What It Is Today

Japan is one of the most crypto friendly countries in the world with its pioneer role in adoption and crypto friendly legislation. However, the history of hacks and scams that rocked the cryptocurrency space in the country has made the country to put strict regulations in place for crypto businesses in the country. This was employed to restore the confidence of the masses in the industry.

Recently, Japan had announced that it is soon going to establish new regulations for cold wallets of cryptocurrency exchanges.

The Future Of Cryptos In Canada Is Still Unclear

Canada is equally similar to most countries on undefined stance on cryptocurrency. There have been cases of banned accounts as a result of crypto-related activities. It is still debatable whether cryptocurrencies are considered as currencies or security. Establishing a crypto startup is still not so suitable in comparison to some countries like Malta that have friendly legislation in place.

Friendly crypto legislation is essential for the growth of the cryptocurrency industry. This is still scarce to come by in contemporary time as most countries are still indecisive; however, with time, more countries will spring forth with friendly cryptocurrency regulations.

Layla Harding

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