With increased mainstream crypto adoption, there has been a consequent increase in imposed cryptocurrency regulation all across the globe. When it comes to monitoring cryptocurrencies, global regulators in different countries have incorporated varied approaches to develop and implement sanctions that protect the state and its citizens from the woes of crypto technology. These regulations are aimed at safeguarding monetary policies and also prevent criminal-minded individuals from using crypto to conduct their illegal activities i.e., money laundering or terrorism financing.
Stiffening of the Crypto Regulations
Since the rise of crypto, there has been so much scrutiny surrounding the fintech community and authorities of various states. During that time, most people felt like the tension was too intense and that all the fuss of everything happening was against the crypto revolution. Little did they know Facebook would add/spoil the fun out of it!
The announcement of Libra-Facebook’s inaugural cryptocurrency raised crucial regulatory questions that attracted the attention of regulators and politicians, especially in the U.S and the world over. That set a new course for the crypto watchdogs to follow.
After Facebook’s public interest on crypto, regulators have been vigilant more than ever and have already started introducing new laws into the global financial markets. Nonetheless, these regulatory frameworks are still at very early stages, and most jurisdiction is not entirely sure on how to govern the crypto space. What’s right rather is that the crypto space needs such clear regulation guidelines to safeguard investors’ interest and also prevent the possible misuse of the technology.
Many protagonists may argue that crypto should not be regulated because the whole concept of the underlying technology should be decentralization. But in the real sense, cryptocurrency is not entirely decentralized given that many aspects of the technology such as exchanges, marketing, and governance on the issue of new coins are somewhat centralized and susceptible to abuse.
They, therefore, require a standardized oversight with clear regulations to prevent and punish impropriety. Most importantly, if left unregulated, their intense volatility threatens monetary policies and possesses an economic risk that could bring an economy to its knees, especially in smaller developing countries.
The Regulatory Landscape
As mentioned before, regulation in the crypto field is varied. In addition, different countries hold different views on cryptocurrency-some term it as legal tender, and many view it as commodities or digital assets. In crypto regulation, the regulatory system as per jurisdiction can be categorized into three broad categories: Closed regulation such as China, open and strict regulation like in the USA, and open and liberal regulation as with Switzerland.
A report titled “Regulation of Cryptocurrency around the World” details the legal and policy landscape surrounding cryptocurrencies around the world. The report covers 130 countries that have enacted regulations or policies governing the crypto space. The report attributes the expansive growth of cryptocurrency in the past four years to the universal presence of crypto, causing national and regional authorities to grapple with the set regulations.
In the report, most governments are established to have issued warnings on the dangers of investing in the cryptocurrency markets. These warnings are mostly issued by the central banks and are aimed to educate the public on the importance of dealing with actual currencies that are not volatile rather than cryptocurrencies. Apart from pointing high volatility as a factor, most warnings also note that cryptocurrencies face possible abuse through illegal activities such as money laundering and terrorism.
According to the report, countries that have imposed restrictions on crypto and even banned all the related activities include Algeria, Bolivia, Morocco, Nepal, Pakistan, and Vietnam. Several countries such as Iran, Thailand, Lithuania, China, Lesotho, Bangladesh, and Colombia have not banned their citizens from dealing in cryptocurrencies. However, they have imposed indirect restrictions by barring financial institutions facilitating cryptocurrencies transactions i.e., wallets, exchanges, etc. from operating within their borders. Meanwhile, China, Macau, and Pakistan have completely banned Initial Coin Offerings (ICOs).
From the report, not all countries have been hostile to cryptocurrency and blockchain technology. These countries, including Luxemburg, Spain, Belarus, and the Cayman Islands, have enacted friendly regulations to attract potential investors in the sector. Nonetheless, they still do not recognize cryptocurrencies as legal tender.
The report also notes that some countries have even gone further even to develop their own system of cryptocurrencies or digital coin backed by the Central Bank. This category includes Venezuela, China, Marshall Islands, Lithuania, and the Eastern Caribbean Central Bank (ECCB) member states.
While most countries have regulated cryptocurrencies based on being legal or illegal, few have actually developed mechanisms of taxing it. Subsequently, the primary challenge in taxing cryptocurrencies is how to categorize crypto activities involved issuing fair tax rates. Countries have varied ways of taxing cryptocurrencies as either a financial asset, foreign currency, or income tax.
MyCointainer Complies with Regulations of Crypto Exchanges and Custody Providers
Crypto exchanges and custody providers have not been left out in the premise of crypto regulation. Crypto exchanges present a platform in which crypto users can trade cryptocurrencies or digital currencies for other assets such as conventional fiat money or other digital currencies.
Crypto exchanges play a crucial role in the entire crypto-asset ecosystem and therefore have increasingly come under regulation attributed to growing concerns regarding their financial stability. There is a need to regulate exchanges so that they can function as neutral platforms.
A report by the Financial Stability Board (FSB) released in July 2019 noted that crypto-asset platforms still don’t pose a threat to financial stability. Still, there was a need to collaborate with other financial regulators such as the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) to develop regulations given the rising consumer protection and money laundering concerns.
In this effect, several crypto custodian providers such as MyCointainer are regulated to safeguard consumer interest.
What You Should Know About MyCointainer
MyCointainer is an online automatic staking and masternode staking platform that functions to assist users trade coins and generate substantial profits in the form of stakes. It’s basically a staking platform that assists new crypto investors to trade easily with digital assets.
The platform has numerous benefits including making it easy to buy EUR, USD and other currencies. MyContainser’s mission is to create a smooth entry path into the world of digital money with plenty of support as well as minimal investment risks. It’s perfect for individuals to develop a solid financial portfolio in digital currency with an eye for profit. They even have a community page where everyone can chip in and earn even more by helping MyCointainer grow.
Why MyCointainer is Ideal in this Era of Crypto Regulations
To safeguard investors’ interest and enhance transparency, MyCointainer is regulated by the Financial Intelligence Unit licensed under number FVR000557 & FRK000469. The license allows it to provide services of exchanging cryptocurrencies to fiat currencies and other cryptos. Financial Intelligence Unit serves as a national center for the receipt and analysis of suspicious transaction reports and other information relating to money laundering, financing of terrorism, and associated predicate offenses. With MyCointainer being regulated by FIU, users are assured of protection against and eventuality.
Crypto regulations are an important consideration given the continuous growth of the crypto space and the financial risk it poses to the global economy thanks to its high volatility. Cryptocurrency exchanges and custody providers should also be regulated to promote neutrality and protect users from selective exploitation. For any avid crypto trader, using only regulated or licenses crypto products such as MyCointainer should be the first step towards trading prosperity. You will have the much-needed peace of mind as you are assured of protection against any eventuality.
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