Controls on cryptocurrency arebecoming tougher than before. India,Japan, South Korea, China, and Singapore are getting stricter about cryptocurrencies.

While the Reserve Bank of Indiais not mandated to regulate crypto assets with the existing law, the currentmandate provides for the RBI to assess the exposure of the crypto assets in thefinancial institutions. The mandateprovides for monitoring their operations. Subject to the mandate, the Reserve Bank has prohibited the financialinstitutions in India from dealing with or using cryptocurrencies forsettlement.

Japan amended the PaymentServices Act way back in 2017 and provided for the legalization of thecryptocurrency. The Financial ServicesAgency (FSA) and two other bodies of the government like the Central Bank andthe Ministry of Finance are involved in regulating cryptocurrencies in Japan.

The Fintech Center established bythe Bank of Japan conducts research on how they can improve the existingfinancial services and structures. TheMinistry of Finance supervises the legislation of the trade of the cryptoassets, and they plan the execution of crypto-related taxation. The real-name system was introduced in Japanby the two regulators.

In South Korea, the Central Banklisted the FSB as the regulator. TheBank of Korea researches about the development of crypto assets and works onthe impact of the assets in the economy of the country when using thecryptocurrencies as a real paying instrument.

In Singapore, the MonetaryAuthority of Singapore performs regulatory functions. Singapore has been in the cryptocurrencyspace for quite some time. Despite beinglisted in the crypto space, there is only one regulator for Singapore. This regulatory body monitors the prudentialexposure of insurance, banks, and asset managers to the cryptocurrency space,thereby ensuring their citizens have a prudent exposure to the cryptocurrencyas an asset type.

China banned cryptocurrencies in2017, despite having been an avid promoter of the crypto during the early yearsof Bitcoin. Crypto-related activities are monitored and regulated by thePeople’s Bank of China, the Central Bank, and five other regulatory bodies. The Securities Regulatory Commission of Chinais currently regulating the research related to crypto-assets based securities.

Cryptocurrency regulation acrossthe world is highly inconsistent. Theexisting legislation might not be final as the cryptocurrency industry isevolving. Different countries havedifferent regulations on investing and trading. Regulatory clarity and conventions and agreements between nations aboutcryptocurrency usage are the key to mass adoption of the cryptocurrency acrossthe globe. However, when that happensdecentralization will be put to stakes.