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Staying on the wrong side of the law is never a good idea, even when it could put your investments at risk. Checking in on what the regulations require is a smart move.
Cryptocurrencies are a relatively new trading medium and therefore continue to change in scope and technology. refore, by making regulations that affect them, many governments take a sufficiently combative stance against them.
Diving directly into cryptocurrency trading without considering the underlying regulations is like walking on eggshells. refore, the article will outline all the latest crypto regulations, highlighting those employed in the US, China, and the UK.
Latest regulations in the US
United States is the world’s largest economy and the world’s largest military power, with as many aircraft carriers as the rest of the world. set. cryptocurrency policy of the US is therefore of global importance.
predominant stance of the US stance on cryptocurrencies is that although they recognize them as a medium of exchange, they are not regular money. refore, several states have passed or are about to pass various regulations in 2021 regarding cryptocurrencies.
Reviews and changes of previous positions
Arkansas has passed a clarification Regulation regarding the control of cryptocurrencies. Includes control of virtual currencies under the amended Uniform Money Services Act. Also, Indian reviewed his unclaimed property plans to include the virtual currency after repealing it.
state of Hawaii has adopted a resolution requesting the Department of Commerce and Consumers to reconsider a 2016 ruling. Additionally, the verdict on asset reserve requirements for virtual currency companies is aligned with the asset reserve requirements of other states.
New legislative creations
Kentucky has created a new section under KRS 139 that defines various terms used in commercial cryptocurrency mining with blockchain technology.
On the other hand, Wyoming created a new cryptocurrency participation program and an advisory board. new creations are tasked with providing matching funds for carbon capture, use and storage projects. y also provide for the establishment and management of decentralized autonomous organizations.
Regulation based on praise and adoption
Louisiana praised Bitcoin for becoming the first trillion dollar decentralized asset in an adopted resolution. Additionally, the resolution encouraged state and local governments to consider cost-effective ways to use blockchain.
In North Dakota, the Legislative Council considered studying the feasibility and desirability of regulating virtual currency-based institutions and their regulation. Additionally, the interim requirement for 2021-22 is to report its findings and provide comprehensive recommendations for attaching regulations to the 68th Legislative Assembly.
A total of 31 states have pending bills awaiting approval as updates to their cryptocurrency regulations. This is all part of the 2021 legislative session.
New York has the highest number of pending bills with 8, all of which have yet to pass at the drafting stage. Kentucky has been busy with at least five bills, including two signed by the governor and one passed in the Senate.
China still seeks to ban cryptocurrency mining
China is considered the next world economic superpower, with the largest value-added production and the second largest economy. It also has the largest population in the world.
country’s regulatory environment for cryptocurrencies, which has been increasingly negative, cannot be taken lightly. country’s latest legislative steps this year include;
Cryptocurrency-related service bans
A May legislation by the Chinese government has imposed a broad ban on financial institutions and payment companies, preventing them from providing cryptocurrency-related services. It will also warn investors not to engage in speculative cryptocurrency trading.
ban required institutions not to offer any services related to cryptocurrencies. Services such as registration, trading, clearing, and settlement of any cryptocurrency-related action are prohibited.
In June, a more direct call for China’s central bank has approached major lenders to crack down on cryptocurrency-related services. Lenders included the Industrial and Commercial Bank of China (the world’s largest bank by turnover). y also included the Agricultural Bank of China (the world’s third-largest by revenue) and Alipay from the giant retail platform Alibaba.
Following the previous month’s bans, mass arrests were made in China in June 2021. crackdown was aimed at addressing money laundering using cryptocurrencies.
More than 1,100 suspects were arrested on charges of money laundering through phone and internet scams. Money launderers charged clients involved in criminal activities a fee of between 1.5% and 5%. According to the commission to be paid, the money and other illegal contraband were converted into virtual currency.
Direct closure of cryptocurrency support company
Chinese government stepped up its crackdown on cryptocurrency trading in July 2021. First, it ordered the shutdown of a company that has violated its legislation against cryptocurrency-related services.
company in question closed the store on suspicion of providing software services for virtual currency trading. strict legislation of the Chinese government is seen as an attempt to reduce capital outflows through cryptocurrencies, especially stablecoins.
Are UK watchdogs gearing up for cryptocurrencies?
As the world’s leading financial center, UK cryptocurrency regulations related to cryptocurrencies are vital in the financial world. latest UK government regulations, which have been largely negative, include;
Stronger compliance measures
UK Financial Conduct Authority (FCA) has created stricter regulatory and compliance measures for all cryptocurrency companies. January statement required all companies offering cryptocurrency services to register and demonstrate how compliant they are with anti-money laundering regulations.
Next As for the registration requirements for June, the UK financial supervisor found that companies have not complied with anti-money laundering rules. Only five companies had fully registered, 90 had only temporary registrations, while 51 had withdrawn their registration applications entirely. FCS has expanded the temporary registration regime as a last resort for compliance.
Banning of the world’s largest cryptocurrency exchange
UK financial regulator has banned the world’s largest cryptocurrency exchange. Binance went off-limits to any regulated activity in the UK according to the FCA notice published on June 25.
ban targeted Binance Markets LTD, which was the only entity regulated by Binance in the UK. It went into effect immediately, including alerts to consumers and the entire Binance group.
conclusion
regulatory environment surrounding cryptocurrencies has seen some notable changes in 2021. However, the changes are not entirely positive. fact that the United States is a federation means that each state has passed different regulations regarding cryptocurrencies. However, the regulations approved were the most positive of the three selected countries.
China and the United Kingdom have greatly increased their crackdown on cryptocurrencies. UK has increased regulatory requirements for cryptocurrency companies, even going as far as to ban the world’s largest cryptocurrency exchange. On the other hand, China has completely banned cryptocurrency trading, arresting violators and shutting down a company that violated its regulations.
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Adam is an outgoing boy who likes adventures and discovering new things. Despite her boring life, she loves writing about cryptocurrencies and exploring what blockchain technology can do for the next digital world where all adventures will be virtual.
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