2018 has been a turbulent year for cryptocurrencies. In this video, we are going to give you a quick overview of how governments have responded to cryptocurrencies in 2018.
Many of the world’s financial leaders did begin looking into stronger monitoring of crypto-assets and the need for a multilateral response for these assets. With Japan overseeing cryptocurrency trading, France and Germany were also keen to make joint proposals to regulate the cryptocurrency market. The European Union also noted that for the short term they will also focus on applying know you customer, anti money laundering and terrorist financing rules.
The US SEC also mentioned that online cryptocurrency trading platforms need to be registered with the regulator and be subject to additional rules. The SEC noted that “potentially unlawful” platforms may be giving investors an unearned sense of safety by labelling them as digital exchanges. Any exchange needs to register with the SEC as a regulated national securities exchange or alternate trading system.
These signs clearly show that regulators are cracking down on the cryptocurrency industry. Furthermore in the US, many people who made a profit on the late 2017 crypto boom, had their celebrations cut shorts as the IRS reminded people on how cryptocurrency gains or losses will be taxed. The taxation guideline from the IRS was harsh, as it classified any cryptocurrency related transactions as property, which has a high tax value. Although was a strong expectation for the SEC to pass a Bitcoin ETF, they have however, continued to further delay the decision to February 2019, after rejecting nine applications in August 2018.
When it comes to Asia, China has kept their cryptocurrency and ICO ban from September 2017 while South Korea has lifted the blanket ban on ICOs, legalized Bitcoin as a remittance method, and have reclassifies cryptocurrency exchanges as legal entities. In Hong Kong, they are taking a more liberal approach to cryptocurrencies, but implementing safety guards for investors. In early November, the Hong Kong securities and futures commission announced a the implementation of a sandbox regulatory framework for accredited investors to manage and trade crypto. If this framework is successful, they will allow more traders and investors to trade on the state approved framework.
As for India, the Reserve Bank of India announced that the bank will no longer provide services to a person or business that deals with cryptocurrencies in April 2018. This gained a lot of backlash and frustration from the Indian public. Many cryptocurrency exchanges have even challenged the RBI in the Supreme Court. As for cryptocurrency regulations, many believe that India would be ready to release their draft documents in December 2018.
What are your thoughts on the crypto market of 2018? Do you think that world is becoming more accepting towards cryptocurrencies?
Or is there still a long way to go?
Let us know what you think. It’s Tem and Cindy with Cryptopig. Catch you guys around!
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