Legislative Regulation Of CryptoCurrencies — Is It Good Or Bad?

Written by bitbon.space | Published 2018/07/25
Tech Story Tags: bitcoin | regulation | cryptocurrency-investment | legislation | summit

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The Blockchain technology has become significantly popular over the past few years. The largest transnational companies understand the importance of this technology, and neither of them wants to be left behind. Against this background, corporations have started investing huge amount of funds in the development of distributed databases and creating their own research centers.

According to the Neustar International Security Council (NISC), the forum of cyber security experts, about 80% of the world’s leading companies are interested in the use of crypto currencies in their own business activity. However, the fact that digital currencies do not have the legal status troubles most of them. In other words, there are no common “guidelines” on the use of crypto currencies, and the problem of their regulation is a critical question today.

It is so critical that France and Germany have taken the initiative to include the subject of regulation of the crypto currency market in the agenda at the G20 summit held in Buenos Aires this year.

It was the first time this subject was discussed at such level. Before that, the media was content only with the representatives’ individual statements of any agencies from different countries. They were mostly neutral and had no legal basis. No one expected that the solution would be taken as a result of negotiations at the Argentinian summit; however, the fact that this question was considered at the G20 summit meant a lot.

The following key points of the meeting should be highlighted:

  • many participants of the summit have agreed that digital currencies already integrated into the social life completely, and their usage cannot be forbidden;
  • most countries do not see any problems in further development of the Blockchain technology and the Blockchain-based financial instruments, but at the same time they mention that it is necessary to develop a range of rules and requirements to create crypto currencies and conduct the iCO;
  • the task to develop and present the first official proposals for crypto currency regulation in July this year has been undertaken by two international economic institutions: Organization for Economic Co-operation and Development (OECD) and Financial Action Task Force (on Money Laundering) (FATF);
  • the EU representatives have stated that they intend to handle this issue today without waiting for July.

There is an opinion that the crypto currency legislative regulation at the government level can do serious harm to the crypto society, but it is not true. In reality, the legislative regulation must become a breath of fresh air for the crypto world. Many companies are interested in digital currencies and would like to use these technologies in their business; and investments would be greater, if the crypto currency market was legal.

That is why July can become a new starting point in the history of development of virtual currencies. After a set of rules for legal use of “intangible” money is adopted, really great businessmen and traders will come into the market that will contribute to further progress of the Blockchain technology.

The article was originally published on: https://www.bitbon.space/en/news/global/zakonodatelnoe-regulirovanie-kriptovaliut--khorosho-ili-plokho


Published by HackerNoon on 2018/07/25