Global cryptocurrency regulation is turning bearish in these five countries ๐จ This article is 4 years old...
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Global cryptocurrency regulation is turning bearish in these five countries
3 min read
Updated: Feb. 20, 2020 at 6:26 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
As the cryptocurrency markets are in freefall, global cryptocurrency regulation appears to be turning bearish as well. While one SEC Commissioner proposes a โsafe harborโ for cryptocurrency projects, the US Secretary of the Treasury announces โsignificantโ new regulation. So, what gives?
Top five countries promising stricter cryptocurrency regulation
1. Brazil
The cryptocurrency scene in Brazil has taken several hits lately. Once thriving and โcrypto-friendlyโ, the South American countryโs IRS imposed stricter cryptocurrency regulation in August 2019.
According to the Brazilian crypto news site, Porto do Bitcoin, from that date, all exchanges have had to report all transactions monthly to the Federal Revenue Service โ no matter the amount. They have also been subject to greater compliance burdens.
Brazilian cryptocurrency exchanges have been struggling to meet the criteria. But this month saw Access Bitcoin exchange closing its doors while another, Latoex, is reportedly in trouble. Former CPO of Access Bitcoin Pedro Nunes said:
“After the rules of the Federal Revenue, we noticed a significant decrease in the volume traded within our market. We also feel that the market has cooled for smaller exchanges.”
2. Russia
Russiaโs stance on cryptocurrencies has been murky at best. The country seems to be sending out mixed signals as to how it wants its cryptocurrency regulation to develop.
With some of the most active traders in the world, major cryptocurrency exchange Binanceโs CEO Changpeng Zhao said: โRussia is our key marketโ a few months ago. Binance also added support for the Russian Ruble just last week.
However, today, according to Russian news site RBC, the country is now stepping up its stance on AML. That means clamping down on crypto. The Russian Central Bank highlighted its plans to adjust banksโ roles and their ability to define the criteria for โunusual operationsโ when it comes to AML.
In other words? Opening up its authority to freeze cryptocurrency-linked bank accounts.
3. United States
We may celebrate the small victories as โCrypto Momโ Hester Peirce keeps on trying. Yet, it seems the U.S. with its current regime refuses to warm to cryptocurrencies.
Indeed, as pro-Bitcoin candidate Andrew Yang withdrew from the presidential race, weโre left with an anti-crypto misogynist at the helm of the worldโs most powerful nation:
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
The presidentโs sentiment has been echoed by the US Secretary of the Treasury Steven Mnuchin. He told the Senate Finance Committee the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) is preparing “significant new requirements” for cryptocurrencies.
He added that weโll “be seeing a lot of work coming out very quickly” and that both FinCEN and the Treasury Department had been โspending a lot of timeโ on this.
“We want to make sure that technology moves forward but, on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts”
On top of that, the DoJ also labeled bitcoin mixing a crime last week, while the Minneapolis Federal Reserve President Neel Kashkari called the cryptocurrency space โa giant garbage dumpster.โ
4. Belgium
Another new development in cryptocurrency regulation comes out of the heart of the EU โBelgium. The countryโs Financial Services and Markets Authority (FSMA) just revealed that it has been in discussions with the government of Belgium to enforce greater regulation on digital currencies for transactions.
Senator Jean-Paul Servais, chairman of FSMA, reportedly stated that the industry is clearly โgrowing at an alarming rateโ. He urged lawmakers to establish a โlegal framework for the sale, purchase, and use of virtual currencies and all related financial products.โ
That doesnโt necessarily mean that cryptocurrency regulation here will be bearish. However, he cited following the lead of countries like China, Russia, and Algeria โ countries that have either banned cryptocurrencies or heavily regulated them.
5. China
China may have doubled down on blockchain technology and announced plans for its own central bank-backed digital currency, but it remains vehemently opposed to cryptocurrencies.
In fact, when President Xi Jinping came out in support of blockchain last fall, the markets pumped with many in the crypto space calling him โCrypto Dad.โ Beijing was quick to shut that down. The type of ledger that China is interested in is the permissioned one that it can control. Permissionless currencies like bitcoin are not part of the Communist Party of China’s remit.
So, is there any hope? Well, since Indiaโs Supreme Court finally declared that bitcoin and other crypto-assets are not illegally last month, investors are pouring in. Many players are taking advantage of here from Binance to OKEx announcing local partnerships.
Itโs still somewhat disheartening though as we accelerate on so many fronts โ and regulation remains firmly two steps behind.
Mentioned in this article
Posted In: Edge, Regulation
Author 
Christina Comben
Christina is a web3 writer, editor, and content manager with a passion for technology and starting important conversations. As an industry OG, sheโs not phased by market volatility and frequently scrimps on Starbucks to BTFD.
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In this article
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
OKX
OKX is a world-leading digital asset exchange, providing advanced financial services to global traders by using blockchain technology.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Andrew Yang is an entrepreneur and author running for President as a Democrat in 2020.
Hester Peirce, known as the “Crypto Mom” for her pro-cryptocurrency and blockchain stance, was sworn in as Commissioner of the U.S.
