With the rise in popularity of cryptocurrencies and blockchain, regulators and governments around the world are trying to keep up. Each country has different approaches, since some are supportive while others are waiting, and there are some who are openly against it.
This week, the G20 summit will have two separate debates as part of a common response to the regulatory aspect. According to a public document, the focus of Tuesday’s second discussion will be on the implications of cryptocurrencies and the potential applications of blockchain technology.
As the summit approached, the G20 governments became more active in their approach to the cryptosector. Let’s see the positions of the nations, until now, in this regard:
The host country, Argentina, adopted Bitcoin and encouraged innovation through its passive approach. Japan is the most favorable cryptocurrency country, recognizing them as payment instruments, and at the same time making them taxable.
One of the main markets for cryptos, South Korea, is working on a KYC (Meet Your Customer) approach and ICO regulation.
Currently, the EU is discussing regulations on the basis of individual members, however, it wants strict rules to prevent the financing of terrorism and money laundering. Russia has adopted a measured approach through the regulation of crypts and ICO, while restricting advertisements and investments of the latter.
Positioning itself as the blockchain innovation center, Canada has taxed crypto-profits. Italy and Turkey have no regulations, while France is already working on it. Germany considers the cryptoactives as legitimate and subject to taxes, but requests additional licenses. Indonesia does not have such regulations, but prohibits Fintech companies from using them for transactions.
Mexico approved a bill on crypto that disables them as currency, and treats them as taxable goods, while the exchanges are under the supervision of the central bank. Saudi Arabia is taking a relaxed approach when working on its regulation, but a ban is unlikely. So far, South Africa has no regulation, but is currently planning it.
The “wait and see”
Australia does not have such specific rules, but it surely focuses on greater transparency through AML (anti-money laundering). Although India has declared the crypts as illegal coins, the country is waiting for the global approach, and then make an informed decision. Until recently, the United Kingdom had been waiting, but recently has spoken positively, while working to prevent consumers.
Brazil has banned investments in cryptocurrencies, and is working on a broader regulatory approach. China has taken the strictest step by banning ICOs and cryptocurrency trading.
Although the United States is not totally opposed, it has prohibited its citizens from participating in the ICO, they have issued cryptographic exchange licenses and regulations for illegal acts and money laundering.
Most nations are inclined to regulate cryptocurrencies, protecting consumer interests through AML and KYC practices. It is highly plausible that the regulation takes effect, instead of a total ban, although the ICOs can expect to see stricter regulations, since the members are not very cautious with them.