In 2009, Cryptocurrencies started just a means of exchange and paying for products and services. The technology has been growing exponentially since then and the global token economy is now within reach. However, most governments around the world have been struggling to identify how to handle the new currencies. Although only a few regions have totally banned the Cryptocurrencies, most have turned to regulation. According to Mike Kayamore, the CEO of QUOINE, more Crypto regulation will help the new currencies become mainstream.
Cryptocurrency Regulations In Different Countries
Cryptocurrencies are products of a new technology and come with unique capabilities that make it challenging for the different governments around the world to determine the best way to regulate them. Japan is among a few countries that have put in place the Crypto regulations. Statistics indicate the country has 3.5 million Crypto traders. The need to protect these investors has forced the government to work towards establishing a stricter regulatory framework.
Crypto regulation in Japan is far much advanced, as the country is the first one to fully regulate and license Cryptocurrency exchanges. The government has so far approved 16 exchanges including QUOINE. This enables these exchanges to receive the same recognition as other financial institutions in the country such as banks and insurance companies.
Other countries such as the EU, US, India, Vietnam, South Korea, and China have taken different positions when it comes to Crypto regulation. Whereas some are welcoming the innovation, others are cautious and some opposed to it. EU is in the process of regulating the sector. In the US, the lawmakers are in the process of enacting Crypto regulations. The use of Cryptocurrencies as a legal tender in India has been banned. Crypto payments are not allowed in Vietnam. In South Korea, the government regulates Cryptocurrency exchanges. In China, Cryptocurrencies remain banned.
Where Crypto Regulation Has Worked
In countries with Crypto regulations, more people are more likely to engage in Cryptocurrency trade without the fear of losing their money. Take Japan, for instance, the country can be said to have the most advanced Crypto regulatory system. Regardless, the government does not hesitate to tighten the regulations whenever necessary as it did on June 22, 2018. The country’s decision has brought many benefits including strengthening the Cryptocurrencies.
Why More Crypto Regulations Are Important
Blockchain and Cryptocurrencies come with immense benefits. However, they also come with their own downsides that only increase in the absence of regulations. It’s undeniable that a wider adoption of Cryptocurrencies has enhanced innovation to the benefit of businesses and everyone at large.
Putting Crypto regulations is critical in enhancing collaboration among different stakeholders in the sector. The regulations can make it easy for regulators and lawmakers from around the world to work together. Investors, financial institutions, and fintech startups among others can achieve the same.
Having appropriate regulatory measures can allow the use of the Cryptocurrencies in a safe way. It can also enhance transparency in the sector and build trust. Consequently, investor confidence would increase allowing more people to invest in the sector. More Crypto regulation could be of great benefit to everyone and help the currency become mainstream according to QUOINE’s Mike Kayamore.
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