Governments worldwide are now regulating Cryptocurrencies

The Government is now determined to tame the manic, wild beast of investment in cryptocurrencies. Their regulatory techniques ran a colossal gamut stretching from the vicious ban of cryptocurrencies in China to strict licensing of cryptocurrency exchange regime in Japan and a widespread prohibition of cryptocurrencies in Switzerland. The USA is yet to assume a strategical approach toward regulation of crypto currency trading. Overall, the governments of several nations are becoming more and more active in its regulatory approaches. The evolution of policies and regulations will help to determine the atmosphere of trading in cryptocurrencies.

  1. Primary concerns of cryptocurrency regulators

There is a long list of concerns that includes illegal ICOs, financial laundering, evasion of tax, cyber theft, leakage in transactions, excessive assumptions of price and more. These risks and factors had once been easily overlooked by government officials but with cryptocurrencies steadily pushing through to mainstream commerce and investment.

  1. Measures adopted by US economy strategy makers

Even though there isn’t a hard and fast set of regulations and policies in the American economy which will change if the federal organizations are given more economic authority, yet there exists a fragmentary method of regulation. The SEC focusses on regulating ICOs and assumes a stringent approach towards mutual and traded funds. The biggest exchanges of the world have been permitted by CFTC to enlist the futures of Bitcoin. The CFTC has subpoenaed one of the biggest venues of trading while the Departments of Treasury and Justice are collaborating to do away with financial laundering, and quash unauthorized activities.

  1. Regulatory policies across the globe

ICOs and trading in cryptocurrency trading have been banned by the once actively supportive Chinese government. The Japanese adopted a different strategy of control by licensing sixteen venues of cryptocurrency trading. South Korea has made the trading regulations more rigid and European Union has warned investors against the loss and bankruptcy incurred while trading in cryptocurrencies. The French government has closed down upon the trading, while the Swiss economy is set to forge its own crypto nation.

  1. Workings of the fiscal service industry

JP Morgan and Chase and Bank of America have prohibited the use of credit cards to purchase cryptocurrencies. With the relationship between Bitfinex and Wells Fargo at an end, only one channel is open for traditional banks, that is the regulated market of crypto futures.

  1. Response of crypto markets to the incremented oversight

Increased regulatory policies led to a price plunge by 70%, although the price rebounded soon after. This erratic fluctuation is partly the result of the absence of a global and uniform economic policy regarding cryptocurrencies.

  1. Response of crypto industry

The American organizations, like Coin Centre, Bitcoin Foundation, Chamber of Digital Commerce have locked horns with lawmakers against the tightening regulations. While part of the industry is trying to evade the policies, others are flying over to Japan to secure and stamp and license pf approval.

  1. Next is what

The March conference of twenty financial heads will be on cryptocurrencies, relevant global policies, and norms. Officials of Korea are working on new rules while Europe is revising its regulatory framework.