Cryptocurrency is, without a doubt, a breakthrough technology that has taken the world by storm. Though is still new and unfamiliar to a lot of people, many have come to owe their riches and success to this innovation. In the same way, however, many have also come to maliciously use it for their own gains, causing a loud call for regulations.
Cryptocurrency is fairly new and most countries do not have regulations for its use. Some governments even struggle to define cryptocurrency using their existing laws. The immediate need for regulations have brought about bans and tariffs all over the world.
Mining Operations Ban, US
As previously reported, Plattsburgh, New York, passed a moratorium on new cryptocurrency mining operations. Plattsburgh residents have suffered from high electricity bills that go over $100 more than their usual bills. The ban will last 18 months as the city tries to solve the power consumption problems brought about by the dawn of these crypto mining operations.
Mining Operations Tariff, US
Following the Plattsburgh moratorium, a new tariff was created to target cryptocurrency miners. All miners in the state of New York will be charged with higher electricity rates than other residential homes and businesses.
Exchange and ICO Ban, China
ICOs are banned in China—they have been deemed illegal since September 2017. Cryptocurrency to fiat currency exchanges have also been banned in the mainland. China-based financial institutions are prohibited from dealing with cryptocurrency.
China even went as far as to block all cryptocurrency-related websites in the entire country with what others dub the Great Firewall of China.
ICO Ban, South Korea
South Korea also declared an ICO ban in September 2017. The ban prohibits the creation and operation of ICOs in South Korea. Citizens are still allowed to indulge in ICOs overseas. However, as reported earlier, the South Korean ICO ban may soon be lifted.
Another regulation imposed prohibits resident aliens in the country from participating in cryptocurrency exchanges.
ICO Regulation, Philippines
An ICO for KropsCoin was issued a cease and desist order back in January. The Philippine Securities and Exchange Commission cleared up that they were not closing their doors on ICOs in general but ICOs would have to register with the SEC first before offering/selling any tokens.
The same rules apply for many other countries and states because they define cryptocurrencies and tokens as “securities.”
Act on Digital Businesses, Thailand
Thailand has recently come out with the Act on Digital Asset Businesses and a tax law for cryptocurrencies. They require cryptocurrency operators to comply with registration and know-your-customer (KYC) laws. A 7% VAT and a 15% withholding tax on cryptocurrencies and ICOs will be collected.
Google and Facebook Crypto ad Ban
Google and Facebook have banned all cryptocurrency related ads from their websites, products and services to give scammers one less avenue to promote their scams.
Though some regulations may sometimes hinder the growth of the industry but they do a good job in limiting the growth of scams and other malicious operations that harm the industry.
What do you think about crypto regulations? How do think cryptocurrency should be regulated? Comment your thoughts below!