How to avoid paying a $200,000 fine.October 2, 2018
Cryptocurrencies are finally beginning to be taken seriously by government agencies.
The SEC (Securities Exchange Commision) in the USA has fined cryptocurrency hedge fund, Crypto Asset Management, $200,000 for violating US financial laws. This is the first legal course of action taken by the SEC against a cryptocurrency institution.
We are not celebrating the fact that a company broke the law here of course, the good thing about this is that the US has government legally recognised a cryptocurrency company.
And it’s not just in the US, here in the UK, Nicky Morgan, the Chair of the Treasury Committee was quoted saying to the FCA :
As the government and regulators decide whether the current Wild West situation is allowed to continue, or whether they are going to introduce regulation, consumers remain unprotected.
He was also calling for the government to introduce more regulations for cryptocurrencies in order to protect customers from fraud and volatility.
Morgan believes that Britain can become a hub for cryptocurrencies with the right regulatory measures in place. An FCA report on cryptocurrencies said:
It’s unsustainable for the government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting. Extending actual laws to cryptocurrencies trading and ICOs would be the faster way to have the supervision of sector regulators.
Countries across the world are beginning to accept that crypto currencies are here to stay and are trying to find solutions to integrate them into their financial systems. South Korea are one of the countries at the forefront of crypto adoption with the Korea Times reporting that the South Korean government are ready to approve crypto and blockchain related regulations.
The 19 other G20 member states will be watching with interest to see how effective their regulations are.
Other countries have also begun to take steps towards crypto adoption with Russia reversing its initial decision to ban them. Whilst Australia and Canada are still deciding on the best course of action.
The European Union has approved a directive UE 2018/843 which states that all member states must recognise cryptocurrencies by January 2020.
There are currently 28 million people worldwide who want to pay in crypto with that number rising to over 100 million in the next two years. These figures are making it more and more difficult for governments around the world to dismiss cryptocurrencies as a fad.
Legal recognition as a valid currency is the next step, once this happens, the floodgates will open, all businesses and financial institutions will have to quickly adapt.
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