The Finance Ministers of the member countries of the European Union are closely studying Cryptocurrency and regulatory problems that they create. Politicians are planning to discuss whether to tighten regulations, as well as to examine the problems, including the lack of transparency in the industry, the misuse of digital currencies for illegal purposes such as money laundering, tax evasion and the financing of terrorism.
The meeting will be held in Vienna on 7 September, during which, according to the documents, European regulators will consider ICO as “an effective way of raising capital”. Ministers are keen to find a way by which Cryptocurrencies will be able to upgrade the existing economic system. It remains unclear whether taken any strict limitations that affect the Cryptocurrency Markets.
Regulators in China, of course, worked tirelessly to completely eliminate crypto-currencies from the country, but most States have adopted a much more reasoned approach to the industry. Although it is unclear what will be the outcome of the forthcoming meeting of Finance Ministers of the EU countries, policy explicitly took a position of “do no harm”, allowing the innovation to progress, and trying to reduce the number of fraud and illegal activities.
Regulatory groups in the United States send investors mixed signals, although their approaches in General look reasonable. The Commission on securities and exchange Commission (SEC) remains relatively quiet concerning cryptocurrency regulation, but rejects countless of applications for ETFs because of fears of “market manipulation” and volatility.
Regulatory counterpart, SEC, Commission on trade commodity futures (CFTC) expressed support for the cryptocurrency markets, stating that technology and investors deserve “respect”, and that regulations should act only in the interests of markets and investors.
It is noteworthy that Treasury Secretary Steve Mnuchin spoke this week in defense in the cryptocurrency industry from spyware. In the report of its Fintech Department, addressed to the President of the United States Donald Trump, Mnuchin said:
“At the international level, many countries have established different regulatory “sandbox” — testing grounds for innovation… Although the approach in the United States is complicated by the fragmentation of our system of financial regulation, the Treasury is committed to working with Federal and state financial regulators to create a single solution that performs all the tasks — in fact, the aforementioned sandbox.”
Mnuchin also added that the United States should “be aware of developments in technology and the right to adapt the rules so that they do not restrict innovation”, referring to the encryption technology and the blockchain.
Japan has concentrated on the regulation of cryptocurrency exchanges, and not on the cryptocurrency markets in General. That is why Japanese regulators have focused on anonymous cryptocurrencies such as Monero and zcash for causing the exchange to hold their delisting.
Japan has also taken steps to reduce speculative investment associated with cryptocurrencies, for example, imposed restrictions on trade with leverage, which prevents transactions with the borrowing of funds and high risks.
To the extent that, as cryptocurrency markets continue to grow, and adoption becomes more common, it is assumed that global regulators will cooperate to support innovation and protect investors ‘ funds.
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