Since the advent of cryptocurrency and blockchain technology, people all around the world are enthralled due to their presence. Both of these are considered an innovation in the field of technology. Today, numerous blockchain advisors give updates on cryptocurrencies and blockchain. Cryptocurrencies became popular because its primary goal is to eliminate the authority of the traditional banking system and the financial institution involved in the transfer of funds. The world has seen numerous regulations and acts based on the adoption of cryptocurrencies in 2019. In this article, we will have a brief look at cryptocurrency regulations and adoption coming from several countries across the globe.
Cryptocurrency Regulations And Adoption Until Now
1 China Still Wants Blockchain, Not Bitcoin
China has always involved itself in trading through cryptocurrency. Although China has strict rules for adoption of cryptocurrencies, traders have somehow used them to buy and sell their favourite digital assets. Several cryptocurrency exchanges have been closed, and people were punished for the use of these digital currencies. The year 2019, also observed a milestone approval from the Chinese President, as he encouraged both private and public organizations to adopt the blockchain technology. Since this blockchain adoption, speculations focusing Digital Currency or Electronic Payment System (DCEP), which is the government’s digital asset, has lost control. Also, ideas have been backed by the government’s attempts to minimize the management and usage of non-state digital assets. As talks of the DCEP heat up, the country is undoubtedly one to look out for going into the new year.
2 France Could Go For CBDC in Future
Some of the European countries like France have involved themselves in integrating their financial systems with cryptocurrencies. Earlier, the Central Bank of France declared that they are testing a Central Bank Digital Currency (CBDC) for financial institutions that operate in the country. The bank also revealed that this operation would be guided by financial players and not the retail consumers.
3 Iran Is Interested in Mining Bitcoin
Although the country has banned the usage of cryptocurrency as a medium of exchange, the country still involved itself in Bitcoin mining significantly in 2019. Also, economic sanctions have pushed Tehran to explore other sources to generate income. Bitcoin mining has enhanced the financial situation of France so far.
4 Russia Is Testing CBDCs
Russia gained a lot of attention in the year 2019, as it was in rumours in providing regulations on the adoption of cryptocurrencies this year. Although many proposals came on its usage, none of them materialized tangibly. Russia has so far been banning the use of cryptocurrencies to make payments. The country’s central bank is experimenting its stablecoins bounded to real assets in a regulation model and investigating its own CBDCs.
5 European Union Has Shown Strictness Towards Cryptocurrency Adoption
Cryptocurrency firms have always been struggling for their survival, as the European Union planned to introduce its Fifth Anti-Money Laundering Directive (AMLD5). According to the EU, This AMLD5 will launch in early 2020, and it will force the cryptocurrency firms to report the financial data. Several cryptocurrency firms operating in the European Union have already terminated their services, calling the incoming regulatory standards. These firms include BottlePay and Simplecoin, which is Dutch cryptocurrency mining platform.
6 The USA Has Introduced Yet Confusing Tax Rules
The United States of America has always projected itself as an industry leader. Despite being one of the top nations, it has not shown real progress in compliance and taxation on cryptocurrencies. The Internal Revenue Service (IRS) issued crypto tax guidance in late 2019, including various taxable events and how cryptocurrencies will be treated and how much amount will be chargeable. However, it was noted that the tax guidance was not efficient and was producing more obstacles rather than solutions. To solve this issue, cryptocurrency enthusiasts from Congress addressed the IRS, asking to simplify various murky areas and also improve its scope. The Securities and Exchange Commission (SEC) has not endorsed funds traded by any Bitcoin exchange.
In this article, we have seen some cryptocurrency regulations and adoption from several countries across the globe. Since the introduction of cryptocurrency, several nations are imposing rules and regulations on its usage. Nowadays, a lot of websites provide blockchain analysis services. Cryptocurrencies are gaining attention because they created to free currency from the central authorities. The year 2019 saw numerous regulations that are ready to adopt cryptocurrency as a medium of exchange. It is also seen that these nations have no problem in cryptocurrency mining. Countries like China has become the top Bitcoin miner so far. Finally, we can hope that cryptocurrency will see mass adoption in the future.
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