Countries Expected to Introduce Crypto Regulation in 2019 or Later

Wilfred Michael 

Wilfred Michael

News reporter

05 March 2019,
20:38
Countries Expected to Introduce Crypto Regulation in 2019 or Later

It has been over a decade since the first cryptocurrency Bitcoin came into existence and many exciting developments have followed the introduction of this new form of currency.

Thousands of cryptocurrencies followed, and at the time of writing this report, the total crypto market cap is hovering slightly above $132 billion, albeit there was a time when the industry was worth nearly one hundred times more.

However, the reality is that despite all the excitement and expectations placed on cryptocurrencies, authorities in some regions of the world are still struggling to define a clear regulatory framework for the invention and its ever-growing industry.

Countries such as Malta, Switzerland, Belarus, and Australia have provided regulation while more prominent nations like China, South Korea, and Germany are yet to do so.

Moving away from the list of ‘have’ and ‘have nots’, there are some countries expected to introduce regulation for the crypto industry in 2019 or at least soon. Most of them have already taken the first steps to achieve the milestone, and we’ll review what has happened so far in these regions.

 

1.Country — United Arab Emirates

Regulatory Focus — Initial Coin Offerings (ICOs) and Security Token Offerings (STOs)

Progress — In December 2018, the UAE’s Securities and Commodities Authority (SCA) ruled to classify tokens issued by ICOs as securities and is currently working on a new bill expected to go live in 2019.

Additionally, the SCA is collaborating with the Abu Dhabi Securities Exchange and Dubai Financial Market to create blockchain based platforms on which ICO tokens can be traded just as on a stock exchange.

Estimated Time of Arrival - Mid 2019

 

2.Country — Russia

Regulatory Focus — Cryptocurrencies

Progress — In May 2018, a proposed draft bill for regulating cryptocurrencies in Russia passed its first reading at the floor of the Parliament (State Duma). However, slight adjustments had to be made to the bill so that it could suit the evolving crypto industry.

In December, State Duma head of Committee on Financial Markets, Anatoly Aksakov said that members of the parliament would review the bill before deciding whether to pass it into law.

Russia has in recent times passed the first set of rules and will likely release a “block of draft rules” in Spring 2019 according to President Putin’s order.

Estimated Time of Arrival — Mid 2019

 

3. Country — India

Regulatory Focus — Cryptocurrencies

Progress — In 2017, local banks were banned by the Reserve Bank of India (RBI) from doing business with crypto exchanges as a way to stifle their operations. The exchange operators sued the Indian Central bank to court subsequently, leading up a decision by the Supreme court that the banking authority should clarify their stance on cryptocurrencies.

This clarification will likely result in India legalizing crypto in 2019, with a top official working in India’s interdisciplinary committee on cryptocurrencies confirming this in December 2018.

The Indian Supreme court also recently gave the country’s government a four-week ultimatum to produce the regulations, meaning that it will happen sooner, rather than later

Estimated Time of Arrival — March 2019

 

4. Country — Uganda

Regulatory Focus — Cryptocurrencies

Progress — Given the state of crypto regulation in Africa, it will be a milestone if Uganda were to create a framework for the industry soon.

However, in November 2018, Uganda’s Minister of Finance, David Bahati told lawmakers that a National Payment Services Bill that will govern digital financial transactions like cryptocurrencies is expected to be deliberated on by the parliament in early 2019.

Estimated Time of Arrival - 2019 or beyond

 

5. Country — Malaysia

Regulatory Focus — Cryptocurrencies

Progress — The country's Finance Minister, Lim Guan Eng. confirmed in November that the Securities Commission is working towards finalizing the regulatory framework by the first quarter of 2019. Work on the regulatory framework was started in early 2018 but has taken more time since it intends to oversee Initial Coin Offerings (ICOs), cryptocurrency exchanges as well as the general use of digital assets in Malaysia.

Estimated Time of Arrival  — Q1 2019 or before mid-year

 

6. Country  — France

Regulatory Focus  — Initial Coin Offerings (ICOs)

Progress  — Although nothing concrete has happened in France, authorities in the European region has reportedly expressed willingness in regulating ICOs by issuing certificates to projects that meet up with required standards.

In exchange for doing this, French regulators will make it compulsory for ICOs to pay taxes based on the volume of public funds raised.

Estimated Time of Arrival  — 2019 or beyond.

 

7. Country  — United States

Regulatory Focus — Cryptocurrencies and Initial Coin Offerings ICOs

Progress - Until now, though the U.S SEC classifies nearly all ICO tokens as securities, making it difficult for projects to raise funds from public investors.

However, in December 2018, US Reps Warren Davidson and Darren Soto followed up on their promise to provide a clear regulatory framework for the country's crypto industry, by releasing to the U.S Congress a new bill called Token Taxonomy Act. The bill proposed a new classification for ICO tokens and defined cryptocurrencies in a more acceptable fashion.

Given that the bill was released just before the Congress went on break last year, it is expected to be reintroduced in the coming months for further studies. 

Estimated Time of Arrival — 2019 or beyond

 

Final Words

Right now, some members of the crypto industry are still divided on whether the industry needs regulations or not because of the basic principle of decentralization governing blockchains like Bitcoin’s.

However, the truth is that whether now or later, authorities would want some control over the industry and as shown in the Malta and Belarus, a governmental seal will boost the industry’s performance rather than wind it down.

If the aforementioned countries add their names to the list of regulated jurisdictions, then there is a reason to believe that the crypto industry will finally be accepted in the mainstream and only then will it be ready to realize its full potential.

 

Subscribe to our Telegram channel to stay up to date on the latest STO and crypto regulations news