In a generalized concept, the need to achieve progress and reach consensus that guarantee the implementation of these new technologies is urgent.
Establishment of controls in the United States
As some progress that we can highlight in this topic is the news about the goals achieved in countries like the United States, where the U.S. Security and Exchange Commission (SEC) has launched a new workgroup to collaborate with Blockchain and cryptocurrency startups, which will be the strategic center for financial innovation and technology (FinHub) and which will serve as a resource for the public participation in problems and initiatives related to SEC technology.
One of FinHub goals is to provide a portal with which the industry and public are involved directly with SEC personnel in innovative ideas and technological developments and serve as a liaison with other national and international regulators related to emerging technologies and equally reduce the fear of investors towards the emergence of disruptive innovations through the enactment of regulations. In the same way, the SEC aims to increase its efforts to eliminate the new companies financed by ICO, focusing in particular on those that did not take measures to guarantee only the participation of accredited investors.
While regulations are necessary to establish the operating parameters of these new technologies, these are facts that generate a concern about which measures represent security and which don’t in the field of digital assets, and what would be the effects that this would have on the projects that decide to settle in the United States, before others that prefer to relocate in other countries.
Sanctions to the “petro”, it’s not a cryptocurrency
In Latin America, the launching of the cryptocurrency denominated “petro” by the Venezuelan government has generated questions because it does not have the specific characteristics of a cryptocurrency, decentralization and independence, as it’s issued by the government and is backed by an asset such as oil. In view of these facts, the senators of the United States have requested sanctions for the cryptocurrency, considering that it does not contribute to improving the economic situation of Venezuelan citizens, but on the contrary, it generates exclusive benefits for the government and for those at their head.
In this case, a project that proposes sanctions for all transactions made by a person from the United States or within the United States that are related in any way to this cryptocurrency is being processed.
Regulatory advances in Europe
At the European level, European Union (EU) regulators are considering cryptocurrencies on a case-by-case basis, through continuous evaluation of the initial coin offers to assess which, if any, should be regulated. The EU has issued repeated warnings to investors about the lack of a safety net for crypto-investments, which do not seem to be taken seriously by investors, which is why it shows a special interest in the elaboration of regulations for appropriately deal with cryptocurrencies.
Likewise, another concern generated by the investment in cryptocurrencies in Europe refers to money laundering, for which the Financial Action Task Force on Money Laundering (FATF) based in Paris works under the premise that jurisdictions around the world are required to establish regulations for cryptocurrency exchanges in order to avoid their use in money laundering, terrorist financing or other crimes.
Bitcoin reigns in Asia
Regulations in Asia are advancing at a good pace, especially in China, which owns approximately 70% of the investment in Bitcoin, which is why an arbitration body in China has ruled that despite the country’s Central Bank ban of trading with currencies, Bitcoin must be legally protected as a property with economic values, in order to avoid that the lack of regulations allows the commission of crimes against those who carry out operations with cryptocurrencies.
Other news about global regulations refer to the self-regulating status granted by the Japan Financial Services Agency to cryptocurrencies, which authorizes the Japan Virtual Currency Exchange Association (JVCEA) to monitor this activity through the establishment of rules and the monitoring of compliance with them.