Europe overtook the US in the race to regulate the cryptosphere
The United States lags far behind European countries in terms of cryptocurrency regulation. This prevents the adoption of blockchain technology and limits the adoption of cryptocurrencies
Of course, the regulation of cryptocurrencies in the United States is present, and even more than necessary. Against this background, many countries that have not yet decided on the basic principles of taxation and regulation of the cryptosphere look much friendlier. But the lack of regulation is also bad.
For cryptocurrencies to develop normally, a clear regulatory framework is needed. It enables large enterprises to plan their entry into the cryptocurrency market and their use in accordance with current legislation.
As an example, it is enough to look at the EU and a number of Southeast Asian states that have taken steps towards soft regulation. They introduced a clear taxonomy of digital assets at a time when the United States did not smell like anything like that.
For example, the key event of the outgoing year was the proposal of the European Union to introduce a unified legislative framework for cryptocurrencies, valid for all 27 EU countries. Moreover, a pilot regime for market DLT infrastructures should be introduced in the near future.
TOP-3 countries that have decided on their views on the cryptosphere
Each of these states, to one degree or another, has prepared and is implementing a policy regarding cryptocurrencies. This has a positive effect on both startups and existing crypto projects, and investors.
It is one of the most progressive cryptocurrencies in the EU. Since January 2020 by the Banking Law, cryptocurrency storage has become a regulated financial service. To do this, you need to obtain a license from the BaFin regulator.
A clear understanding of their rights and responsibilities has stimulated many large companies to enter the crypto market and start developing a roadmap for their crypto projects. More than forty organizations have applied for cryptocurrency storage.
A law was also drafted in August 2020 that would allow the issuance of digital bearer bonds in the DLT infrastructure without requiring a paper certificate. It will be adopted in the second quarter of 2021, which will allow Germany to further improve the prospects for startups and investments in the crypto sphere.
A crypto-friendly state with clear guidelines on digital assets. In the fall of 2020, the country's parliament voted in favor of a series of financial and corporate law reforms to improve the performance of projects based on DLT technology.
The laws are expected to come into effect in early 2021 and this will create opportunities for wider adoption of digital assets. The rules for trading digital securities will be updated, a new authorization category for crypto exchanges will be created.
The state was the first in Europe to prepare and put in place a framework for regulating blockchain, digital ledger technology and tokens. The law came into force on January 1, 2020. With its help, the cryptosphere received an innovative and functional regulatory tool.
Unlike in Europe, US regulators are either imposing tough sanctions or are silent. Perhaps 2021 will bring positive changes. This will be another impetus for the development of the cryptosphere!