13 countries, the United States, China and other 13 countries cryptocurrency supervision pattern

One concern in the cryptocurrency and blockchain ecosystem is the degree of adoption. Decentralized virtual currency running on distributed ledger transactions (DLT) has a lot of speculative operations and risks, which requires enforcement regulations in the encryption ecosystem. The growing insecurity in the encrypted world also calls for the introduction of legal policies. A few jurisdictions have taken active steps to increase the potential of the encryption market based on accepted operating standards. Here, we conduct a comprehensive study of various emerging regulatory systems.

The regulatory environment in the United States is somewhat vague in terms of cryptocurrencies and crypto-exchanges, with fragmentation at the state and federal levels. The Securities and Exchange Commission (SEC) believes that cryptocurrencies are securities and has begun investigating and prosecuting some high-value ICOs. The most striking thing is the $15 million ICO in Veritaseum in 2017. The SEC applies securities laws to all aspects of the encryption industry, wallets and exchanges.

The Commodity Futures Trading Commission (CFTC) takes a more unified view of cryptocurrency trading and allows for several publicly traded futures and options products, the most notable of which is the Chicago Mercantile Exchange futures. At present, its daily average trading volume reached 1.3 billion US dollars, setting a record.

The Justice Department is currently negotiating with the SEC and the CFTC to develop legislation for the industry, which will certainly be welcome in the current uncertain US regulatory environment.

Malta has positioned itself as a global leader in cryptocurrency regulations. Even if the cryptocurrency is not treated as legal tender, the government treats it as a “exchange medium, account unit or value store”. Malta does not have specific cryptocurrency tax regulations and VAT does not apply. According to legislation enacted by the Maltese government, the cryptocurrency exchange is legal in Malta, which defines a new regulatory framework for cryptocurrencies and addresses the issue of anti-money laundering/counter-terrorism financing. Legislation includes three separate bills, including the Virtual Financial Assets Act (VFA), a regulatory regime for cryptocurrency exchanges, ICOs, brokers, wallet providers, consultants and asset managers, setting a global precedent. The VFA Regulations (effective from November 2018) also introduced the Innovative Technology Arrangements and Services Act, which establishes a registration and accountability framework for cryptographic service providers. Malta has also established the Digital Innovation Authority, a government agency responsible for creating encryption strategies, working with other countries and organizations, implementing standards and using encryption and blockchain technologies.

The United Arab Emirates launched a cryptographic asset regulatory framework in 2018 under the Abu Dhabi Global Market (ADGM). The regulatory framework is designed to work with the ADGM Financial Services Regulatory Authority (FSRA) to standardize spot cryptographic assets and trading activities in ADGM. The framework addresses the risks associated with cryptographic asset activity, money laundering and financial crime, consumer protection, technology governance, custody and trading.

The Australian Government accepted the use of cryptocurrencies in 2017, in particular Bitcoin and the same currency subject to the Capital Profits Tax Act (CGT). Further guidance issued by the Australian Securities and Investments Commission (ASIC) in 2017 provides advice on the legal treatment and structure of tokens (securities or utilities) under the General Consumer Law and the Companies Act.

The Luxembourg Financial Supervisory Commission (CSSF) manages the field of cryptocurrency transactions, and the new cryptographic business must obtain a payment institution license for the transaction. The license covers the anti-money laundering/CFT reporting obligations under Luxembourg's Electronic Money regulations. In 2016, Bitstamp received its first license, which trades multiple currencies, including US Dollars, Euros, Bitcoins and Ethereum.

After contacting the cryptographic industry in 2018, Gibraltar introduced its digital bookkeeping technology regulatory framework. Exchanges under this framework must be registered with the Gibraltar Financial Services Commission (GFSC) to demonstrate the ability to meet the “principles” of the DLT framework, including the discovery and disclosure of money laundering and terrorist financing. The regulatory framework adopted was an amendment to the Gibraltar Financial Services (Investment and Trust Services) Act of 1989 to regulate encryption project companies based in Gibraltar.

Canada does not accept cryptocurrency as legal tender because provincial cryptocurrency trading rules are inconsistent, but at the federal level, cryptocurrencies are considered to be securities. A notice issued by the Canadian Securities Regulatory Authority (CSA) requires the application of existing securities laws to ICO and ITO, as well as cryptocurrency investment funds and cryptocurrency exchanges that trade these products.

Estonian cryptocurrency trading operates within a clear regulatory framework that recognizes the activities within the exchange as legitimate. Under this framework, the exchange is subject to strict reporting and KYC rules, and cryptocurrency exchanges must obtain two licenses issued by the Estonian Financial Intelligence Unit: the Virtual Currency Trading Service License and the Virtual Money Wallet Service License.

The UK government has adopted a gradual approach to ensuring good regulation of the blockchain ecosystem. There are currently no specific regulations to regulate the industry. However, UK cryptocurrency exchanges need to be registered with the Financial Market Conduct Authority (FCA) – only some encryption industry companies may be able to obtain electronic licenses. The FCA guidelines emphasize that entities that engage in cryptocurrency-related activities (such as futures and options) under existing financial derivatives (such as futures and options) regulations require authorization.

In Switzerland , cryptocurrencies and exchanges are considered legal. The Swiss Federal Tax Administration (SFTA) considers cryptocurrency to be an asset: it is subject to Swiss wealth tax and must be declared on the annual tax return. After obtaining a license issued by the Swiss Financial Market Regulatory Authority (FINMA), the registration process of the cryptocurrency exchange ensures a good operating environment for the cryptographic exchange. Swiss cryptocurrency regulations also apply to ICO: In February 2018, FINMA issued a set of guidelines for existing financial institutions.

The Korean government ensures strict compliance with cryptocurrency regulations in the registration process and other measures regulated by the Korea Financial Supervisory Authority (FSS), especially for cryptocurrency exchanges. The Korea Financial Services Commission (FSC) stipulates that banks that hold accounts held by cryptocurrency exchanges have stricter reporting obligations.

Singapore provides a friendly environment for cryptocurrency exchanges and transactions because these activities are legal and do not treat cryptocurrencies as legal tender. The Monetary Authority of Singapore (MAS) adopts a relatively loose approach to cryptocurrency trading regulation, using the existing legal framework whenever possible. Transactions in cryptocurrencies are subject to the country's tax laws.

In order to regulate the digital asset business, Bermuda enacted the Digital Assets Enterprise Act (DABA) in April 2018. DABA applies to any entity registered or incorporated in Bermuda and engaged in digital asset business (regardless of where the activity is carried out), as well as any entity registered or incorporated outside of Bermuda and engaged in digital asset business within or outside Bermuda. The DABA specification encrypts currency transactions, exchanges, and securities activities.

In 2017, China issued the “Announcement on Preventing the Risk of Subsidy Issuance Financing”. The domestic digital currency exchange was ordered to shut down and banned on cryptocurrency. But China plans to issue DC/EP digital currency in 2019, and its attitude toward digital currency/cryptocurrency has turned "fuzzy."

All regulations are constantly being introduced, marking a healthy and mature environment in which all categories of crypto assets will continue to evolve.

Original: https://medium.com/swlh/the-complete-crypto-regulatory-landscape-3db32a1481bc Source: https://first.vip/shareNews?id=2249&uid=1 Translation | First Vip Tracey Note: The original source is Medium.com, and the translation is provided by First.VIP. Please reprint the information at the end of the article.