The New Digital Economy: 4 Examples of Cryptocurrency Regulation from All Around the World

As cryptocurrency is continuing to take roots in most parts of the world and more and more people are getting interested in it. Regulators, retailers, and investors have begun to keep an eye on the industry.

Surprisingly, people are not just looking at cryptocurrency. They want to keep updated with the crypto-space, which has continued rock with the CNBC, Initial Coin Offering (ICO), and the technology surrounding blockchain that’s now being used in large organizations.

These developments have made the investors, retailers, and regulators alert as they want to know what next.

Authorities have, therefore, thoroughly assessed various parts of the crypto-world and they have determined how they should regulate them.

Here are 4 examples of the cryptocurrency regulation from all around the world:

1) Exchanges, Trading, and Mining

Here, regulation tries to asses the way cryptocurrencies are traded in different parts of the world.

In the recent past, there has been a heated debate in several jurisdictions on how cryptocurrencies should be classified.

What are they? Are they securities? Are they commodities? Their classification will determine how they will be regulated under the current laws.

While other countries are still not sure of the classification of cryptocurrencies, others have moved a step further to introduce the regulation.

Regulators have also been focusing on mining operations. “Mining is the process CNBC explained in its previous feature on blockchain of how cryptocurrency transactions are validated on the blockchain.”

“Mining involves purpose-built computers and large electricity consumption, something that has concerned governments, particularly in China.”

2) Crowdfunding and ICOs

Companies are exchanging cryptocurrencies like bitcoin for the new digital token. These companies use Initial Coin Offerings (ICOs).

CNBC tried to take a keen look at the process that has always been controversial because of the high cases of scams that have been realized.  

ICOs poses a clear risk because numerous companies are looking forward to making more money minus having any products.

Regulation around Initial Coin Offerings is still unclear, though, some countries have gone ahead to implement regulations.

3) Financial products

Cryptocurrency is continuously growing and investors are getting interested to join the space.  

But due to the hacks that have always surrounded cryptocurrency, people have perceived cryptocurrency as risky.

Because of this, there has been a call to bring regulated financial products to at least try and solve this stalemate that has made many people fear cryptocurrency.

For example, in the United States, bitcoin has featured products that are offered by CME and CBOE. The only problem that has been there is getting the financial products.

In the United States, there have been several attempts to enable bitcoin exchange-traded fund launched, but it has never been successful.

CNBC tries to assess how different countries are going about with the new technology developments and also how the smaller countries are perceiving the crypto-world.

4) Countries: Singapore

One of the countries where cryptocurrency exchange and trade has been legalized. In fact, their city-state has welcomed the idea even than its neighbors. Cryptocurrency is not a legal tender, though Singapore’s tax authority assumes Bitcoins as goods

Final Thoughts

Cryptocurrency is becoming deeply rooted and within no time, it will be legalized in most of the countries. Before you jump into it, make sure you understand it well.