There are many misconceptions surrounding cryptocurrencies that have led to the delayed regulation of the currency. Governments around the world have been reluctant to legalize them – as their own currencies are at a risk.
Moreover, the volatile nature of the cryptocurrency has led banks and governments to warn people about the repercussions of the dynamics of digital currency. Some countries have even put bans on the trading and mining of the coin – Pakistan and Nepal are a few of the countries in this list.
However, some countries are not stringent about the concept of digital currencies, they are looking for ways to include cryptocurrencies in the mundane chores of life so that people get access to them as they desire.
Moving on, states like Venezuela are looking towards ways to introduce their own systems of cryptocurrency so that they would have control over its regulation. But this defies the whole purpose of digital currency since it is supposed to be decentralized.
The regulation of cryptocurrencies has been achieved by some, as states have started to put tax on the currencies while accepting them as an asset. Israel, Bulgaria, and Denmark have started to collect tax on them, which is a clever move as the value of Bitcoins and other cryptocurrencies are surging with every passing day.
Japan Has Been Ahead of Other Countries
There has been a difference in the ways different states have dealt with the potential cryptocurrency regulation but Japan has been far ahead in the game. The government of Japan has legalized the use of cryptocurrencies – people can trade and mine the digital currency without any hassle meanwhile some countries even fail to recognize the potential of cryptocurrency.
Recently IMF has called a meeting to discuss the rising concerns over Crypto regulation since the world is on the verge of a decentralized currency revolution that may happen without the regulatory laws. However in this case, many illegal activities like money laundering can take place which would be detrimental for the law-making entities in the world.
As far as the regulation on a wider level is concerned, the existing parameters for the regulation of assets are outdated and they may fail to calculate tax on the digital currencies which is a reason as to why it may take longer to regulate cryptocurrency in the world.
Countries where Bitcoin trading has been tax free until now are looking over the ways they can bring bitcoin and other cryptocurrencies in the tax net which would be an initial step in the regulatory process. The response of the countries for the regulation of bitcoins and other cryptocurrencies has been rather slow, the delay in the process is credited to the reluctance and insecurity of the governments to regulate an entity that may have the power to challenge their authority. The governments want to have control over the currencies which is not possible in terms of crypto as the currency is not tangible and is decentralized.
As far as the regulation of cryptocurrency is concerned, the regulatory laws are in the pipelines but officials want to delay the process since they are not aware of the ways it can impact their authority.
But, some countries like Japan, have taken the first steps in the process of the regulation. Starting with the legalization – now Japan is chalking out ways for the regulation of the currency so that they can monitor the ways people are using them.
Worldwide regulation is on the cards but the process will be slow as the existing ways of regulation will be outdated to cover crypto. Unlike the governments, people have accepted the currency as they have started to use cryptocurrency trading platforms and conventional oil profit app to earn profits out of it.