Bitcoin And Regulations: 5 Important Things You Need To Know

Even though a lot has been said, written, and researched on cryptocurrencies, the fact of the matter is that they are very new. The idea of Internet Money, Blockchain technology, and other crypto aspects is something very few people around the world understand.

While every aspect from their generation to distribution and storage is technically based, there are still rumors of cryptocurrencies being equated with gambling. This is not the case.

The problem does not only extend to individual investors, but governments and regulators alike. Rather than engaging with this new and promising asset class, governments view this more from the vantage point of it being a threat.

In this article, we are going to look at Bitcoin regulations from around the world. This is important to understand the legal dimensions cryptocurrencies have assumed in different parts of the world.

List of 5 Important Things you need to know about Bitcoin and Regulations

1. Europe and not America is the World Leader in Crypto Regulations

Most people expect the United States to take the lead when it comes to tech regulations. However, in the case of Bitcoins or crypto, the US government has been very slow to react. The lead in this regard has been taken by European countries.

Countries like Germany, Switzerland, and the European Union (EU) have been very progressive in their regulations. From allowing nationalized banks to start offering specialized crypto-based services, to bringing platforms and exchanges under tighter guidelines, Europe is far ahead.

2. America’s Wait-and-Watch Approach is costing it Leadership Status

The last American President was not too favorably disposed towards cryptocurrencies. However, the change in the Presidency has sent out some positive signals to stakeholders in the cryptocurrency industry. Many are speculating whether it is too little too late for America.

The reason people are saying this is because China has already studied crypto technology and rolled out the Digital Yuan. This is a direct challenge to the superiority of the US dollar in international markets. The United States needs to act fast when it comes to better regulations.

3. Countries in Asia are Offering Cryptocurrencies Mixed Reactions

Japan is by far the leading country in Asia as far as crypto and Bitcoin adoption goes. The country has not made it illegal to hold cryptocurrencies. However, banks cannot offer them as a financial service to their customers. Fintech innovations reign supreme in Japan.

China used to engage positively with cryptocurrencies until they figured out their own Digital Yuan. India’s Central Bank has banned cryptocurrencies. However, the ban was overturned by a Supreme Court order. India counts as one of the leading crypto destinations in terms of investments.

4. Australia is Pushing for ICOs and had adopted a Positive Stance

Even though Australia was late to the crypto party, it is all but making up for it thanks to its progressive regulations. The ICO or the Initial Coin Offering sector has generated a lot of positive buzz on the promise of wealth generation in Australia.

Governments and financial institutions have been playing a very developmental role in pursuing meaningful engagements with Bitcoin and Blockchain in Australia. The Australian government has only pushed for greater security and stability for its investors in the industry.

5. The Global Trend: Pushbacks or Future Engagements

Given the above examples, it is clear that the stance of ‘banning’ cryptocurrencies is not going to hold much water in today’s times. In place of banning, countries all over the world are looking at ways and means of how to positively integrate cryptocurrencies in their economies.

One area that is being stressed is increasing the safety net for gullible investors and screening out entities that are not legit. Governments realize that the adoption of the technology behind Bitcoins like Blockchain too can play a major role in improving prowess.

The Bottom Line

Bitcoin or cryptocurrencies do not enjoy an outright banned stance as they earlier would. There is no doubt some engagements that have started in this sphere. It is true that there is still a long way to go in making Bitcoins and other cryptocurrencies truly mainstream in terms of usage and adoption.

Read Also: 6 Easy Online Business Ideas to Start Now for Your Entrepreneurial Journey