Regulation And Stimulation For Cutting Edge Technology
A number of developments in the cryptocurrency market have opened to door to traders, adding liquidity to the market. The bottom line in all cases; smart countries around the world are embracing blockchain technology, cryptocurrency and ICO’s.
Australia’s Securities and Investments Commissions, ASIC, has updated their guidelines for ICO’s and cryptocurrencies. The most important thing to note is that ASIC is in fact allowing, and regulating, ICO’s and cryptocurrency trading with eye on helping the industry mature. ASIC’s chief, John Price, issued strong support for the industry in a speech at a recent fintech event in Sydney.
“The development of innovative technologies like blockchain and ICOs has the potential to revolutionize how our society engages with financial products and services, but with revolution comes risk… Scams are corrosive when it comes to building any form of trust, and we all have a role to play in making sure they don’t happen.”
In ASIC’s view cryptocurrency could be a currency, equity holdings or derivatives depending on their intended use. ASIC is working with a number of international regulators to clarify a standard of regulation across borders.
Regulators believe in the future of cryptocurrency.
France dealt its cryptocurrency traders a sweet hand when they lowered the tax rate on cryptocurrency and cryptocurrency transactions. Up until now Bitcoin and the other altcoins had been taxed at a higher 45% business tax rate but will now be considered “movable property” and taxed at a much lower 19%. A few types of activities, primarily mining cryptocurrencies, will still be taxed at the higher business rates.
France has also been looking to improve its laws regarding ICO’s and altcoins. France’s Minister of the Economy has formed a task force to examine regulation and how to implement it. They are also looking into methods of encouraging the development of new businesses ICO’s. The only downside is that investment companies are banned from trading in crypto until regulation is in place, citizens can still trade cryptos and CFD’s on cryptos.
The opportunity is simple, the cryptocurrency market is young and growing, get in now while you can.
Buda.com, a Chilean based cryptocurrency exchange, scored a victory in the courts this week if only a temporary one. The country’s Free Market Court ruled in favor of the exchange forcing a number of banks to reopen the exchanges accounts and allowing it to resume business. The ruling will last until a lawsuit levied by the exchange versus the banks comes to its conclusion. In the suit the exchange claims its banking accounts were illegally and unjustly closed by banks overreaching their authority.
Singapore, a haven for tech and fintech, has begun to speed up the process for issuing patents to new companies, especially blockchain based business. The Intellectual Property Office wishes to reduce the time it takes to receive a patent for an ICO from about 2 years to only 6 months. The move would help drive innovation within the nation as well as attract start-up business from abroad, not to mention adding liquidity to the cryptocurrency market.