Cryptocurrency Decentralization will be put to stakes with crypto conventions and agreements between nationsApril 9, 2019
Controls on cryptocurrency are becoming tougher than before. India, Japan, South Korea, China, and Singapore are getting stricter about cryptocurrencies.
While the Reserve Bank of India is not mandated to regulate crypto assets with the existing law, the current mandate provides for the RBI to assess the exposure of the crypto assets in the financial institutions. The mandate provides for monitoring their operations. Subject to the mandate, the Reserve Bank has prohibited the financial institutions in India from dealing with or using cryptocurrencies for settlement.
Japan amended the Payment Services Act way back in 2017 and provided for the legalization of the cryptocurrency. The Financial Services Agency (FSA) and two other bodies of the government like the Central Bank and the Ministry of Finance are involved in regulating cryptocurrencies in Japan.
The Fintech Center established by the Bank of Japan conducts research on how they can improve the existing financial services and structures. The Ministry of Finance supervises the legislation of the trade of the crypto assets, and they plan the execution of crypto-related taxation. The real-name system was introduced in Japan by the two regulators.
In South Korea, the Central Bank listed the FSB as the regulator. The Bank of Korea researches about the development of crypto assets and works on the impact of the assets in the economy of the country when using the cryptocurrencies as a real paying instrument.
In Singapore, the Monetary Authority of Singapore performs regulatory functions. Singapore has been in the cryptocurrency space for quite some time. Despite being listed in the crypto space, there is only one regulator for Singapore. This regulatory body monitors the prudential exposure of insurance, banks, and asset managers to the cryptocurrency space, thereby ensuring their citizens have a prudent exposure to the cryptocurrency as an asset type.
China banned cryptocurrencies in 2017, despite having been an avid promoter of the crypto during the early years of Bitcoin. Crypto-related activities are monitored and regulated by the People’s Bank of China, the Central Bank, and five other regulatory bodies. The Securities Regulatory Commission of China is currently regulating the research related to crypto-assets based securities.
Cryptocurrency regulation across the world is highly inconsistent. The existing legislation might not be final as the cryptocurrency industry is evolving. Different countries have different regulations on investing and trading. Regulatory clarity and conventions and agreements between nations about cryptocurrency usage are the key to mass adoption of the cryptocurrency across the globe. However, when that happens decentralization will be put to stakes.