December 1, 2020

Cryptheory

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Regulations in the World

3 min read
Regulations in the World

Brazil

 

The cryptocurrency scene in Brazil has recently seen several hits. Shortly after IRS prospered in South America and was “crypto-friendly,” stricter regulatory frameworks were introduced in August 2019.

 

According to the Brazilian news server Porto do Bitcoin , all exchanges had to start reporting each transaction every month to the Federal Tax Office – regardless of their amount. They were also subject to greater compliance burdens.

 

Brazilian crypto exchanges are trying to meet the criteria. This month, however, Access Bitcoin was closed, while another, Latoex, was reportedly in trouble. Former CPO Pedro Nunes commented on this:

 

“Following the new federal rules, we have seen a significant reduction in the volume of trading on our market. We also feel that the market has cooled considerably for smaller exchanges. ”

 

Russia

 

Russia’s attitude to cryptocurrencies was at best unclear. The country seems to be sending mixed signals about how it wants to develop its regulation against cryptocurrencies.

 

CEO of Binance Changpeng Zhao recently said in the company of the most active traders in the world, “Russia is our key market.” Last week Binance added support to the Russian ruble.

 

However, according to the Russian news site RBC, the country is now expanding its position on AML. The Russian central bank highlighted its plans to adjust banks’ roles and their ability to define criteria for “unusual operations” with regard to AML. In other words, it is an authorization to freeze bank accounts associated with cryptocurrencies.

 

USA

 

Unfortunately, the US is still critical of accepting cryptocurrencies because it is afraid of abuse in illegal behavior.

 

 

The president’s opinion was reiterated by US Treasury Secretary Steven Mnuchin. He told the Senate Finance Committee that the US Treasury Financial Crime Enforcement Network (FinCEN) is preparing “significant new requirements” for cryptocurrencies.

 

He added that he spends a great deal of time with the Ministry and that we will soon see the result behind a lot of work.

 

“We want to ensure that technology moves forward, but on the other hand, we want to ensure that cryptocurrencies are not used for the equivalent of old Swiss secret bank accounts.”

 

To make matters worse, Minneapolis Federal Reserve President Neel Kashkari called the cryptocurrency space a “huge ashtray.”

 

Belgium

 

Further developments in cryptocurrency regulation come from the heart of the EU – Belgium. The FSMA has just revealed that it is pushing for greater regulation of digital currencies for transactions in negotiations with the Belgian government.

 

Senator Jean-Paul Servais, chairman of FSMA, reportedly reported that the industry is clearly growing at an alarming rate. He called on the legislator to create a legal framework for the sale, purchase and use of virtual currencies and all related financial products.

 

This does not necessarily mean that cryptocurrency regulation will be bearish here. However, he pointed out the possibility of following countries such as China, Russia and Algeria – countries that have either completely banned crypto currencies or heavily regulated them.

 

China

 

China may have doubled the development of blockchain technologies and announced plans for its own digital currency, but it remains sharp against cryptocurrencies.

 

In fact, when President Xi Jinping last autumn called on the public to support the blockchain, the crypto markets was pumped up. But Beijing quickly stopped it. China is only interested in what it can control. Uncontrolled currencies such as Bitcoin are not part of the Chinese Communist Party’s ideas.

 

Summary

 

Blockchain development and cryptocurrency adaptation seem to be accelerating on multiple fronts. Governments are trying to catch up with them through regulations, but the truth is that they are still two steps behind. But no one knows when the card will turn and the regulatory frameworks will have the upper hand.

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