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Banks And Cryptocurrencies Global Evaluation

May 03, 2018 Posted /  2388 Views

Banks And Cryptocurrencies Global Evaluation

Chris Giancarlo, the chairman of Commodity Futures Trading Commission (CFTC), is of the opinion that, the regulations in the near future which are to be implemented by the Federal level authorities don't seem to be sufficient with reference to cryptocurrencies. Earlier this week, Robert Jackson, chairman of the US Securities and Exchange Commission, termed the Initial Coin Offerings market as an unregulated security market which is a consumer protection on ICOs.

These statements point towards the inevitable strict regulations on the cryptocurrency space in the coming future.

The trend seems to be very common that there is no way the government with regards to crypto deals. Some of the countries in the Western hemisphere like the US, Canada, etc are having a global understanding between them for the regulation of the digital market.

Let us understand the cryptocurrency status in some of these countries.

  • The United States.

In this particular country, some of the banks allowed cryptocurrency transactions and also the government is experimenting with the blockchain technology. Also when it comes to the United States all the eyes direct towards the SEC and CFTC. These are the Financial Institutions which are responsible for the cryptocurrency regulations and also providing and transparency for the secure and easy payment or transfer of value by the citizens. 

There are a lot of activities happening in the United States with respect to the cryptocurrencies. SEC required all the cryptocurrency traders to register themselves as exchanges with it. Also, the cryptocurrencies are classified as a security due to lack of categorization. Also, the Internal Revenue Services has considered cryptocurrency into its domains for Federal Tax purposes.  Where is, on the other hand, the banks are dealing carefully with the cryptocurrencies. most famous banks like JP Morgan and Chase, Bank of America and Citigroup have taken a step forward and all the cryptocurrency virtual transactions with their debit or credit cards.

Also not that long ago Goldman Sachs, a leading financial industry hired a vice president who was a great crypto trader, for the digital assets markets after the demand of the users for implementation of the digital currency.

  • Canada.

Even in this particular country some of the banks allow the cryptocurrency transactions and also the government of which is exploring potentials of the Blockchain Technology. The cryptocurrency industry in the country has been flourishing for many years without the intervention of any authorities. But on observing many bigger financial Agencies scrutinizing the field, even the Canadian government made a call to regulate the digital world. The Standing Committee on Finance, FINA passed amendments in order to update the pre-existing regulations on the cryptocurrencies. Some of them included registration of Trading platforms as Exchanges with the Committee and prohibiting banks from dealing with the unregistered exchanges.

  • Mexico.

Mexico seems to have a very promising future in the cryptocurrency world. According to a report, there were only 50 fintech companies in the country in 2015 which reached to almost above 2000 in 2017. According to one of the legislation passed by the government, it cautions the citizens to be careful about the scams in ICOs that is happening in the world of cryptocurrency. It is also looking forward to conducting elections with help of blockchain technology in order to eradicate all the corrupt practices.

  • Argentina.

Everything was going smoothly in the field of cryptocurrency until the newly elected president bought into the strict and tough policies on them.

One of the largest futures market of Argentina, Rofex, promises to offer Bitcoin futures due to the reason that the interest in the cryptocurrency market has been rising exponentially. The government has also shown interest in the adoption of blockchain technology by the usage of timestamp app, called Dapp.

  • Brazil.

It is the country where most people don't have access to bank accounts or Financial Services. Many banks in the country have brought down the cryptocurrency trading due to the illicit activities happening in the name of it. Due to which one of the largest investment firms as communicated with the federal authority of the country in order to facilitate an over the counter Bitcoin exchange method. The cryptocurrency here is being regulated by the Brazilian Securities and Exchange Commission.

Also, the former President of Brazil was jailed for carrying out Bitcoin-related money laundering scheme where he manipulated almost $22.4 mln of government funds.

This was on the status of the cryptocurrencies in the various countries of the United States.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: Initial Coin Offerings market Cryptocurrencies Global Evaluation

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