INSUBCONTINENT EXCLUSIVE:
The government has decided to introduce the crypto bill in the Winter Session of ParliamentAs India gears up to regulate cryptocurrency
trade, fear is growing about the possible fallout of the move on this burgeoning and volatile industry
The government has decided to introduce legislation in the Winter Session of Parliament, set to begin on November 29, to restrict and
regulate the crypto trade in the country
When the news broke, earlier this week, the crypto market saw a steep crash, but it has stabilised since
So, it's a good time to reflect on how this highly speculative industry is regulated around the world.United StatesThe US has a dual
system of governance, like India, under which laws vary from state to state
Each American state has its own laws to regulate cryptocurrencies but largely at the country-level, the sentiment is positive towards the
In any case, the US is known to support business opportunities, and so a ban on crypto trading is highly unlikely unless this industry
throws up unmanageable risks to the existing financial system.United KingdomAs is the case with most countries, the UK has not formulated
comprehensive legislation on regulating cryptocurrency
However, under the current system, it grants licenses to registered businesses dealing in crypto trading (for example online exchanges)
It taxes gains from these trades just like any other gains from currency trading.ChinaCryptocurrency trade in China is a difficult
After initially allowing people to trade or mine crypto coins, it started cracking down on mining activities earlier this year and banned
Reports say most miners of significant infrastructure had to move out of the country to continue their operations
China is developing a digital version of its currency, Yuan, and is testing the centrally regulated crypto coin.The European UnionBeing a
grouping of 27-member countries (after the exit of the UK), forming legislation applicable to all members is complicated
While member countries have their own framework on how to deal with this emerging industry, the block as a whole is considering a collective
The European Commission released the draft Markets in Crypto-Assets Regulation (MiCA) legislation in September 2020
When it comes into effect, the legislation will treat cryptocurrency as regulated financial instruments which will require approval from
regulators.El SalvadorIn September, the South American country became the first in the world to officially launch Bitcoin as a legal
currency alongside the US dollar
President Nayib Bukele has positioned Bitcoin as a way to reduce poverty and bring more people into the banking network
Its rollout of Bitcoin was fraught with problems.
