cryptocurrency regulations

Cryptocurrency Regulations in Russia, Italy, Finland, and Brazil

May 19, 2019 Off Steven Anderson By Steven Anderson

Dmitry Medvedev, the Prime Minister of Russia, stated that cryptocurrency regulations are not a priority for now for Russian people.

“The popularity of cryptocurrencies has decreased so far, which likely makes the regulation issue not that relevant already.”

This statement comes at a point in time when the cryptocurrency market is seeing a Bull Market.

Consob, a supervisory authority in Italy, which plays a significant role in protecting its customers and investors from being over-exploited by bad actors, has proposed, “Document for Discussion.”

The proposed documents consist of a definition of cryptocurrency; however, it does not match with virtual currencies like Bitcoin.  However, it corresponds with tokens which do not fit in the description of a financial instrument; however, this will ultimately mean cryptocurrency as a commercial product.

Consob in association with other authorities like Bank of Italy is pushing for the regulation of Bitcoin, cryptocurrency, distributed ledger technology, blockchain, etc.

Finland has already begun regulating crypto providers.  The president of Finland has approved a law to regulate the cryptocurrency service, which included regulating custodian wallet providers, exchanges, and issuers of cryptocurrencies.

“The Act on Virtual Currency Providers enters into force on 1 May. In accordance with the act, the Financial Supervisory Authority (Fin-FSA) will act as the registration authority and supervisory authority for virtual currency providers.”

The Finnish Financial Watchdog stated, “Going forward, only virtual currency providers meeting statutory requirements can carry on their activities in Finland. Virtual currency providers who do not comply with statutory requirements will be prohibited from continuing their business activities, enforced by a conditional fine.”

Fin-FSA stated that the current requirements on the crypto are based on the May 2018 amendments to the EU anti-money laundering directive.  “All EU member states must include services related to virtual currencies within the scope of AML/CFT legislation by 10 January 2020.”  These are according to the fifth money laundering directive.

On registering with the Fin-FSA, the service provider will not be able to operate in another EU country as every member state have their law, which should be followed.

Brazilians like their cryptocurrency.  The Brazilian government has passed new rules, which will come in to force from August 1.  This means to unfold that individuals, brokerage firms, and legal entities will be able to carry out their cryptocurrency operations; however, they will have to inform the treasury of every detail of their transaction.

This regulation is meant to combat tax evasion, and it is also focused on avoiding crimes like money laundering.

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