Commissions to Check Cryptocurrency Fraud – Regulatory Authorities Divided in Opinion – Judges have an Upper HandJune 4, 2019
Brazil has formed a committee to regulate cryptocurrency. Several cryptocurrency scandals have rocked Brazil, and therefore a commission has been established to check cryptocurrency fraud. Different countries are facing the challenge of cryptocurrency regulation in a different way.
Several regulators are unsure of how to treat the cryptocurrency. Governments want to protect their population against the scams and risks imposed by these technologies. At the same time, governments are not willing to restrict the innovation offered by these technologies.
China has completely banned ICOs, and the ban on cryptocurrency continues to date. Hosting any digital asset is considered illegal in China. However, the country promotes blockchain technology.
In India, there is a federal level ban for cryptocurrencies. Both China and India will open their doors when they sense control over the cryptocurrency situation.
Japan has a love and hate relationship with cryptocurrency. The Japanese Financial Services Agency (FSA) has been involved in the regulatory procedures of digital assets. The FSA has required that all the digital assets, funds, and exchanges to work in complete compliance with the Financial Instruments and Exchanges Act.
In a new classification and ICO regulation, Japan recognizes the possibility of an exchange-traded fund. Several events, like the Japanese Blockchain Conference, provide the government of Japan with the resources and information required to take critical decisions moving forward.
South Korea is entirely cautious about adopting cryptocurrency. They are doing this to protect their domestic investors from falling prey to foreign cryptocurrency scams. In the year 2017, South Korea implemented a cryptocurrency ban. Several press releases have been released by the Financial Supervisory Service of the country reinstating that the cryptocurrency will be treated as a different kind of financial instrument. While South Korea takes a friendly approach towards the individual cryptocurrency transactions, they are very strict when it comes to their dealings with the local cryptocurrency companies. However, the Finance Ministry of the country is entirely Bullish about the entire industry.
Singapore thrives on the cryptocurrency and blockchain technology industries. The Monetary Authority regulates and classifies the category for the cryptocurrency. There is an overall difference in opinion among regulators about how they need to be treating and looking at the cryptocurrency. The SEC is yet to reveal its stand on the cryptocurrency.
Due to the lack of appropriate cryptocurrency regulation, the US turns to common law to address regulatory issues. This means cryptocurrency cases are decided by the judges and the judges decide on a case on case basis.