In the past few years, the cryptocurrency industry has grown significantly. It has become a subject of interest for governments around the world. Some countries are strengthening their control over cryptocurrency, while others are still evaluating how to regulate it.
As of now, the total cryptocurrency market cap is $1.9 trillion and it is expected to grow to over $42 trillion by 2025.
Governments all over the world are concerned about the potential risks that come with cryptocurrencies and they are starting to take control of them in their respective countries. There are many states that have already taken steps toward strengthening their control over cryptocurrencies.
Cryptocurrency regulation is not something that just happened overnight. There have been many attempts to regulate the industry since its inception.
Some states have imposed restrictions on buying, selling, mining, and trading cryptocurrencies like China, Russia and Venezuela have done so far.
Others are still debating on how they should regulate crypto-trading in Japan, South Korea, and India. The US government is also debating whether or not they should regulate cryptocurrency.
Control Over Cryptocurrency in Canada
The first thing you should know is that cryptocurrency is not legal tender but can be used to buy goods and services online, so you can freely pay crypto online.
According to cryptocurrency exchanges, they are legal and required to register with FinTRAC after June 1, 2020, Canadian Government also provided a list where you can buy btc in Canada.
Exchanges of cryptocurrency in Canada are essentially regulated in the same way as money services businesses and are subject to the same due diligence, record keeping, verification, and reporting obligations as MSBs dealing with fiat currencies. After amendments to the PCMLTFA (approved in July 2019), from June 2020 all cryptocurrency exchanges need to register with the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC) and, where applicable, comply with margin and market valuation requirements.
Control in the US
The United States is one of those that have been considering how to regulate crypto-related activity. In 2018, the US Securities and Exchange Commission (SEC) made it clear that cryptocurrencies should be treated as securities and they were not exempted from securities laws. The SEC also warned investors about ICOs and crypto exchanges that might be violating laws or committing fraud.
Some US states are strengthening their control over cryptocurrency. For example, New York has declared that it will require cryptocurrency companies to apply for a license before they can operate in the state.
The state of Wyoming recently passed a law that allows corporations to use cryptocurrencies in stock transactions. The state of Ohio has also recently introduced legislation that would allow for the use of blockchain technology and smart contracts.
The US Treasury Department, for example, issued a ruling in 2013: any company that exchanges Bitcoin and other virtual currencies would have to comply with the Bank Secrecy Act and its anti-money laundering regulations.
This ruling was seen as a major threat to Bitcoin’s growth by many in the industry because it would require companies to do more than just abide by anti-money laundering rules – they would also need to get a license from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
The European Union has been strengthening its control over cryptocurrencies, but the states within the union have different approaches.
States in the European Union are taking different approaches to cryptocurrency regulation. Some countries ban cryptocurrency trading, while others are considering regulating it and making digital currencies a part of their economies.
In the EU, there are no specific cryptocurrency regulations. However, some countries within the Union are strengthening their control over cryptocurrencies. These include Italy, Germany, and France.
Italy’s new law is one of the most restrictive in Europe and will likely be followed by other countries.
Italy has recently amended the country’s legislation on cryptocurrencies, adding a new chapter to the country’s tax code. The new law makes it clear that Italy considers cryptocurrency to be an asset rather than a currency, which means that exchanges are now required to pay capital gains tax on every transaction. The law also prohibits minors from trading on cryptocurrency exchanges and requires crypto-related companies to register with authorities.
This is not the first time that Italy has tightened its control over cryptocurrencies. In 2017, Italy’s central bank issued a document saying that “cryptocurrencies cannot be used as a means of payment or for investment purposes” in order to prevent money laundering and terrorism financing. However, they are now trying to implement crypto into the banks.
Germany is the latest country to introduce new cryptocurrency regulations. The German government is planning to introduce a new law that will regulate digital currencies and their use in the country.
The German government has also introduced two draft laws that will regulate cryptocurrencies in the country. One of them is focused on preventing terrorist financing and money laundering, while the other one regulates the trading of cryptocurrencies.
The French government has recently announced its intention to impose stricter rules on crypto-related companies in order to protect investors.
France has one of the most stringent regulation frameworks for crypto-related companies in Europe, with a ban on advertising, strict anti-money laundering requirements, and a requirement that all crypto transactions be reported to the authorities.
The Australian government has introduced new legislation to strengthen its control over cryptocurrency. The Japanese government is also strengthening its control over cryptocurrency, by regulating them as a legal payment method.
The cryptocurrency industry is about to see a new wave of regulations. The state of cryptocurrency is constantly changing and evolving. This is why it’s very important to understand and control the crypto market so it doesn’t crash or drastically change in value.