As you know earlier, they were completely against cryptocurrency but since they know they can't stop the crypto revolutions, they apply tax and regulate it as they did with the gambling industry but not every government around the world thinks like that so here we are going to discuss it. You know forex trading is also banned in India but still, people doing it and promoting it. So there are so many things that are banned but All those things are going on secretly. Recent issues of the security and exchange commission and Binance have drawn the attention of regulators.
Lots of fraudsters and scammers are increased because of a lack of regulations. You know anyone can launch a project and raise a fund from retail investors by doing fake promises this happens a lot and still, it is happening in the crypto market and that is why regulation is important. But in the name of regulations, governments apply rules like gambling which is not fair. Although, some governments thinking positively.
World's Government's Stand On Crypto Regulations
G20 nations and IMF collaborating to establish policy on the cryptocurrency field. The main aim of them is to balance innovation and risk management.
In the united states, Digital Commodities Consumer Protection Act (DCCPA)was introduced and the aim of this act is to protect customer cryptocurrency assets, eliminate conflicts, and decrease the risk of digital commodities trading. But the other side SEC stands against crypto. Because still, the scams are there but this is not a good way to do this. Regulation should not be a burden to users.
India is part of G20 nations and recently they introduce the PMLA act for Indian crypto exchanges. The simple meaning of this act is that Indian exchanges will report suspicious activities to the Financial Intelligence Unit India. This is against money laundering.
To protect investors Europe introduced MiCA regulation. The aim is to protect investor funds and established new rules for asset-referenced tokens, stablecoins, and e-money tokens.
In Japan, there is an AML standard and they are giving priority to KYC and track tracking questionable transactions.
Instead of focusing more on earning more tax on crypto, they should work on the cryptocurrency fair regulation which will protect the investor's fund as well as control the scammers. Fair taxation implementation can play a big role to grow this industry. Remember, the crypto market is increasing and you can see big firms entering in the crypto. Crypto adoption on peak and because of this reason regulation that will be beneficial for investors is required. El Salvador is the best example for all of them. One more important thing is the crypto industry is not like other industries that you can ban completely. Even if governments will not regulate it, this industry will grow. But the main problem is the scam and scammers trap especially new users in the crypto industry. I believe this should be stopped and for that proper regulation can be useful. But Crypto can grow without regulation. What is your point of view on this information friends? let me know in the comment section I will meet you in my next blog. Thank you, everyone. Lucky Ali Image source
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Hi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. I am always interested to learn new things and getting new experiences. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring, Thank you hive family ♥