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What they are most interested in is in classifying the digital currencies available and how to tax and govern these currencies. The challenge regulators faceis in the proper classification of the different ranges of cryptocurrencies. Various regions have devised different approaches to address and regulate bitcoin.
They are afraid of overregulating the coins and overcharging bitcoin trading platforms such as Bitcoin future app lots of returns in tax that it will sabotage bitcoininnovation by suppressing risk. Currently, there are three types of regulating systems used in keeping digital currencies in check and they include; closed system for the Chinese market, open and liberal for the Switzerland market,and open and strict system for the US market,.
For the government of the different parts of the world, the main aim is on customer protection while letting legal businesses to succeed also.
Although different government bodies hold separate views about digital currency regulation, it is clear that we will eventually switch from raw cash to digital currency. Therefore, bitcoin andthe likes are trendsthatfinancial institutions or government officials will not ignore in the long run. As with the introduction of any regulatory body, there will be advantages and disadvantages.
In the US, for example, the fracturing of the national regulatory system plus the different regulators at the federal level will create serious challenges. Speaking to The Telegraph , Treasury Select Committee member John Mann said he expects the Government to carry out an inquiry over regulating digital currencies.
The United Kingdom Chapter to Blockchain & Cryptocurrency Regulation deals with issues relating to. Estate planning and testamentary succession. 12 Although still actively developing, current UK policy thinking in relation to. In the UK, the crypto banking space is maturing quickly. In January , the FCA issued its first Authorized Payment Institution license to a crypto.
It may be that we want to speed up our use of these kinds of thing in this country, but that makes it all the more important that we don't have a regulatory lag. A Treasury spokesperson said: "We are working to address concerns about the use of cryptocurrencies, by negotiating to bring virtual currency exchange platforms and some wallet providers within Anti-Money Laundering and Counter-Terrorist Financing regulation". Join thought-provoking conversations, follow other Independent readers and see their replies. Want to bookmark your favourite articles and stories to read or reference later?
Start your Independent Premium subscription today. A rise of 1, per cent in value this year has worried MPs and banks alike. UK government plans to regulate cryptocurrency UK Prime Minister Theresa May and Chancellor Philip Hammond have declared their intention to regulate cryptocurrencies 'As different nations move to regulate cryptocurrencies in different ways, the short-term impact on the markets will be outweighed by the longer-term stability afforded by consumer protections and the elimination of fraudulent entities and practices'.
This article is tagged with: Bitcoin, cryptocurrency.
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