The Ministry of SMEs and Startups of South Korea has declared that its second largest city, Busan a regulation-free zone for blockchain and crypto industry as part of its liberalisation plan. This is modeled after Zug, Switzerland, in the region a total of eleven regulation has been lifted and they aim to secure $25 million investment into the region by 2021.
A fresh consultation paper on cryptocurrencies has been released by the United Kingdom Financial Conduct Authority (FCA) which aims to clear the uncertainties on regulatory scop of the emerging industry. The Head of Business Development from Broctagon Fintech Group responded, “The guidance outlines that cryptos have no intrinsic value as they are not guaranteed by an underlying asset. Although not a ban, it’s a move in that direction. This lack of enthusiasm is shared by several countries.”
An accounting & consulting company based in Chicago, BTVK LLP has declared that freedom that enjoyed by the crypto universe is coming to an end. It explained, some countries want to regulate the market and reap the benefits of increased trading and financial activity, whereas others have given in to their fear of losing monopoly over currency and recommended an outright ban.
The financial regulator of Germany Federal Financial Supervisory Authority (BaFin) has declared that tarting from January 1, 2020 it would implement strict EU anti-money laundering (AML) regulations and all crypto companies would have to obtain a license to operate. Free Democratic Party member Schäffler said, “The government is now forcing cryptocurrency trading platform providers to overrun the country and seek another location in the EU,”
The Senate Banking Committee reportedly to hold a hearing on cryptocurrency regulations and blockchain next week. The committee has shared in a press release that an open session titled “Examining Regulatory Frameworks for Digital Currencies and Blockchain” will be live-streamed on this coming July 30th however it remains uncertain if any specific legislation would be discussed.
Though the crypto market is comparatively volatile, 2019 has been bullish, but data reveal that some blockchain and crypto companies may be exasperated in the coming months because of USA bring down heavy regulation to the infant industry. US Treasury Secretary, Steven Mnuchin said, “I want to be careful that anybody who’s using bitcoin — regardless of what the price is.”
The European Securities and Markets Authority (ESMA) has came out with a report named Licensing of FinTech Business Models which has identified gaps in regulation for the cryptocurrency space. From the report: “The primary area where regulatory gaps and issues have been identified by NCAs and where FinTech firms do not fit neatly within the existing rules is related to crypto- assets, ICOs and DLT. NCAs called for more clarity at the EU level with respect to the definition and the legal nature of crypto-assets.”
A member of former royal family of Brazil, has come out not in favour of cryptocurrency regulation in the country. He argued that, “Good regulation is one that comes from the consumer’s demand for something for which he felt injured and calls for state protection. I question this adventure of wanting to regulate something which consumers and companies organized to receive Bitcoin do not demand.”
A bill titled, “A draft bill to amend some of the fund settlement laws” has been passed by Japan’s House of Representatives, this move will make the government to incorporate it into a act. The bill will be amending the Act on Fund Settlement and the Financial Instruments and Exchange Act. A spokesperson from FSA commented, “The passing of the bill depends on the deliberation process in the Diet.”
The crypto business in Australia has got a new updated regulatory guidance from the Australian Securities and Investments Commission (ASIC). John Price, ASIC commissioner explained, “Australian laws will also apply even if the ICO or crypto-asset is promoted or sold to Australians from offshore. Issuers of ICOs, crypto-assets and their advisers should not assume the use of these structures means that key consumer protections under Australian laws do not apply or can be ignored.”