Posted 1 year ago | by Ben Armstrong
Crypto Regulations Advance Across Many Nations in 2019
There is a crypto revolution underway. Blockchain was launched with Bitcoin a little over a decade ago, but it has taken on a life of its own. 2019 was a big year for both blockchain and cryptos, and many countries moved further into regulating tokens and pushing blockchain projects along.
Alina Kiselevich is a communication specialist at Enigma Securities, which is a crypto market broker-dealer.
Kiselevich told Cointelegraph:
“Some countries now consider them legal tender, while many viewing cryptocurrencies as commodities. Governments around the world are keenly aware of the problem that the technology is rapidly outpacing the laws that govern it.”
There has been a shift to both limit the use of decentralized tokens, and adopt public blockchain project in numerous countries. This may prove fruitful for cryptos in the long-run, as it will legitimize a technology that many currently don't understand.
China: Accelerating Blockchain, A National Token, and No Cryptos
Blockchain technology is being pushed as the next big thing by the Chinese government. The Standing Committee of the 13th National People’s Congress in China enstated a new law for the regulation of cryptographic technology. The law will come into effect on Jan 1, 2020, and help to realize President Xi Jinping’s calls for a new ear of Chinese blockchain development.
At the same time, China has gone at cryptos with a new round of mining rig shutdowns. The base stance of the Chinese government to cryptos hasn't changed, and is likely to become more strict as time goes on. The nation will have an interest in the adoption of its new digital token, and probably will not be thrilled about its citizens supporting a competing technology.
France: Crypto-to-crypto Trades are Not Taxable
François Villeroy de Galhau, the governor of the Bank of France, announced that the institution is ready to launch a pilot project for a central bank digital currency (CBDC) in 2020. In September 2019, French Minister of Economy Bruno Le Maire stated that crypto-to-crypto trades will no longer be subject to tax and sales of cryptocurrencies for fiat will still be taxable with the nation’s treasury.
Germany: Banks can Work with Cryptocurrencies
In November 2019, a bill was passed by the German government to allows banks to sell Bitcoin and other cryptocurrencies, as well as act as custodians for crypto assets by the end of 2020. The law has received support from local businesses as banks streamline crypto operations and give businesses the authority to safeguard user assets based on their experience and established risk mechanisms.
Iran: Crypto Mining is Legal – Must be Licensed
In July 2019, the Iranian government passed a law that endorsed the mining of cryptocurrencies, equating it to industrial activity. The Ministry of Industry, Mine and Trade has started issuing licenses for the activity, and demand for them is surging.
New Opportunities Emerge Globally
Clearly, crypto winter has given birth to a new era in blockchain and crypto development. As 2020 unfolds, we are likely to see more large-scale blockchain projects hit the market. Cryptos may or may not see prices rise in the coming year, but over the next few years, it is almost certain that a few of the most popular tokens will see a big ramp in market value.