Tag: Cryptocurrencies Regulations

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Cryptocurrencies Regulations: Russia To Ban Cryptocurrencies Payments And Limit ICO Investments

Russia bans cryptocurrencies payments and also limited any ICO investment to about $160 for any non-accredited investors. This is a part of the cryptocurrencies regulations in Russia, a document that has been submitted to the Lower House of the Russian Parliament on March 20th. The legal document has arrived in the decisional house of the Russian Parliament and could be implemented since the summer.

Despite the pioneering and innovative nature of the document, the implemented regulations are striking. Accordingly, both cryptocurrency and tokens can only be used in Russia as a deposit of value or financial assets but not as a payment method.

Technically speaking, cryptocurrencies payments would not be allowed as they are transactions in exchange for goods or services. However,  nothing would prevent exchanging cryptos to fiat currencies via legal systems and if the payment is made in legal tender.

The Russian cryptocurrencies regulations also aim ICOs

The document is differentiating between accredited and non-accredited investors. Accordingly, non-accredited investors will be limited to only a $160 investment in an ICO, this being definitely a very low investment for such projects.

The bill also establishes the basic data a white paper should contain. Thus, the white paper must show the information on the issuer and the shareholders, structure of the issuer’s governing bodies, the purpose of the ICO, and a full business plan.

The new Russian cryptocurrencies regulations target exchanges, as well

The document also focuses on exchange houses, establishing that they can only be legal if they obtain licenses from brokers, dealers, or securities management companies. Alternatively, they must comply with the requirements established by the Russian federal law regarding the organized markets.

Also, the Russian cryptocurrencies regulations document proposes legal definitions of cryptocurrency mining, cryptocurrencies payments, and smart contract. Thus, it defines cryptos as “goods in an electronic format created using cryptographic methods” and declares that cryptocurrency and tokens are considered digital financial assets.

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Crypto

Cryptocurrencies Regulations In EU Are Against Tax Fraud, Not Against Cryptos, Themselves, According To Officials

The European Union wants to tighten the regulation on Bitcoin (BTC) and other cryptocurrencies. For several months now, the possibility of tightening cryptocurrencies regulations on the purchase and sale of cryptocurrencies in the EU has been raised, accused of being a real bargain for money laundering and financial crime.

Now, finally, the member countries have managed to reach an agreement. Regulations have been through the European Parliament, where it has been voted and approved by an overwhelming majority – 574 votes in favor and 13 against.

The proposal includes a whole battery of measures to combat tax fraud through cryptocurrency. It is nothing new under the sky since there are several governments that work in this direction. One of them is the Spanish government, which through the Tax Agency already put on the table the future regulation of Bitcoin (BTC) just a few months ago.

Cryptocurrencies regulations in EU are similar to South Korean ones, lately

However, beyond measures to reduce fraud, there is one that can be very controversial. The European Parliament has given the green light to the creation of a register of users of cryptocurrency websites, the well-known cryptocurrencies exchanges in which you can buy and sell virtual currency freely.

It is a measure quite similar to that implemented recently by South Korea, one of the countries in which the fever of cryptocurrencies has hit hardest. In this Asian country, all cryptocurrencies exchanges are obliged to identify their users, thus ending the legendary anonymity of cryptos.

The European Union openly talks about financial crimes in relation to the Bitcoin (BTC) since it does not bode a bright future for this currency in its territory. In fact, this is the first step for a greater cryptocurrencies regulations in the future. Bitcoin (BTC) mining has been kept safe in almost the entire world, except in China. However, the energy consumption of mining is exaggeratedly high, an environmental problem that surely will not go unnoticed for much longer.

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Crypto

New Cryptocurrencies Regulations Have Been Adopted Yesterday In The European Union

New cryptocurrencies regulations were adopted yesterday, as the deputies of the European Parliament approved, with a total of 574 votes in favor, 13 against and 60 abstentions, an amendment to the law on the prevention of money laundering and financing of terrorism to eliminate anonymity in the services related to money exchanges, portfolios and prepaid cards based on cryptocurrencies.

This amendment will make mandatory the identification of users of prepaid cards financed through cryptocurrencies and that have a limit of between 150 and 250 euros. According to the deputy Judith Sargentini, the French authorities were insistent on this point since the recent terrorist attacks on French soil were financed using this kind of prepaid cryptocurrencies cards.

On the other hand, cryptocurrency exchange operators and service providers must also put an end to the anonymity in their services.

The new cryptocurrencies regulations aim to create troubles for criminals, not the honest Europeans, according to the regulators

Deputy Krisjanis Karins stated that when the cryptocurrencies holders who wish to buy goods and services will have to convert them to Euros, or other fiat currency and it is at this point that the role of the law against money laundering comes in.

That’s when the cryptocurrencies will enter the European banking system and at this point we want the banks to ask who this client is and where the money originates (…) The objective is to create problems for the criminals but not for the common and honest Europeans.

Krisjanis Karins, Deputy, European Parliament

This amendment also imposes greater controls in the banking system to combat money laundering and terrorist financing, since provisions for the registries of trustee beneficiaries, and a register of bank accounts and security accounts are now included.

It should be noted that these changes in European legislation would take effect 3 days after their publication in the Official Journal of the European Union, after which the member states will have 18 months to incorporate these new rules into their national legislation.

Cryptocurrencies regulations have recently been passed in other jurisdictions to prevent money laundering and the financing of terrorist activities with crypto coins. In this regard, a few days ago in Taiwan and Australia, respectively, authorities announced the preparation of a regulatory project and the approval of a new law.

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Crypto Finance News

Soft Cryptocurrencies Regulations Are The Solutions Proposed By The IMF Director, Christine Lagarde

The boss of the IMF believes that crypto coins and blockchain technology could lead to a “more efficient and potentially more robust” financial system but only if soft cryptocurrencies regulations will be adopted.

A month ago, Christine Lagarde warned, in a blog note, about the “dark side” of cryptocurrencies, citing their high volatility and the fact that they can be used for money laundering or terrorist financing. But, as the boss of the IMF prepares to welcome in the Washington political leaders and central bankers for the traditional spring meetings, the former French Minister of Economy split Monday a new blog note where she shared another point of view, now recognizing the crypto and blockchain technology value but only under the conditions of soft regulations.

Undeniable security and speed

Drawing a parallel with the first financial bubble in history, the Tulipomania in Holland in the 17th century, Christine Lagarde first points out the following:

With more than 1,600 cryptocurrencies in circulation, it seems inevitable that many of them will not survive to the process of creative destruction. But those who take root will “have an impact on the way we put money aside, invest and pay our bills.

Christine Lagarde

Christine Lagarde praises, in particular, the speed and the low-cost of the financial transactions conducted via cryptocurrencies blockchain.

The IMF leader also emphasizes the security of transactions enabled by the blockchain technology, stressing out, again, that the cryptocurrencies and blockchain technology could have applicability for governments but only under soft cryptocurrencies regulations.

A more balanced ecosystem

Christine Lagarde hopes that decentralized services stimulated by cryptocurrencies will lead to a diversification of the global financial landscape and ultimately, they will create a more balanced ecosystem, which will be, at the same time more efficient and more secure.

However, the IMF director remains vigilant, saying that cryptocurrencies must still “win the trust and support of consumers and authorities,” which, according to her, is only possible by the implementation of soft cryptocurrencies regulations a better definition of the blockchain role in the financial sector.

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Crypto

Ripple (XRP)’s Ryan Zagone Asked UK Regulators To Implement Cryptocurrencies Supervisory Structures Following The Japanese Model

To guarantee and promote secure and legit investments toward cryptocurrencies, Ripple (XRP), the #3 crypto coin in the world by market cap, has demanded the British crypto regulators to instrument similar supervisory structures to the ones implemented by the Japanese government. Ripple pushed the regulators from the United Kingdom to bring to an end the period of freedom for the crypto coins.

Japan has started the cryptocurrencies market’s legalization and control, taking the first position on the planet in terms of crypto coins trading and investments, despite regulations. Therefore, Ryan Zagone from the Ripple’s Regulatory body supported the proposal stating that regulations are important to bring in new investors and promote the cryptocurrencies market maturation.

Ryan Zagone said that:

Regulation creates the guardrails on the highway that allows new entrants to come in, particularly institutional investors.

He is also the one who invited UK regulators to create an equilibrium between risks (referring to crypto’s volatility) and innovation (referring here to the blockchain technologies).

Ripple (XRP) representatives believe that cryptocurrencies market regulations will bring the cryptos into a new era

The 3 important aspects Ripple demanded to be taken into account are financial security, traders assurance, and, maybe the most important one, money laundering avoidance.

At this time, we are in need of better clarity, more rules, and higher certainty. So, it is a good time to start revisiting the ‘wait and see’ approach opted by regulators.

Ryan Zagone

On the other hand, the UK Chancellor Philip Hammond announced, in March, the intention of creating a new group which will handle exclusively the traders’ protection, while also applying the repository of the Bank of England and Financial Conduct Authority.

At this moment, Ripple (XRP) is trading at $0.65, recording a 2.10% loss in the last 24 hours. Besides, XRP is still on the 3rd position in the cryptocurrencies market, marking a market capitalization of about $25.7 billion and an increase of more than $546 million in its volume in the last day.

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