The initial offering of coins on blockchain platforms has painted the world red for technology companies around the world. A decentralized network that can assign tokens to users who support an idea with money revolutionizes and grants.
Bitcoin that earned profits turned out to be an “asset” for the first investors to give multiple returns in 2017. Investors and cryptocurrency exchanges around the world took the opportunity to generate huge returns for themselves, which which led to the rise of multiple online exchanges. Other cryptocurrencies such as Ethereum, Ripple and other UCIs promised even better results. (Ethereum grew more than 88 times in 2017!)
Although ICOs landed millions of dollars in the hands of emerging companies in a matter of days, ruling governments initially decided to keep an eye on developing faster fintech technology that never had the potential to raise millions of dollars in a very short period of time.
Countries around the world are considering regulating cryptocurrencies
But regulators became cautious as the technology and its underlying effects gained popularity as ICOs began to think about billions of dollars worth of funds, also in the proposed plans written on white sheets. .
It was in late 2017 that governments around the world seized the opportunity to intervene. Although China completely banned cryptocurrencies, the U.S. Securities and Exchange Commission (SEC) highlighted the risks to vulnerable investors and has proposed treating them as securities.
A recent warning from SEC President Jay Clayton, published in December, warned investors to mention:
“Also remember that these markets cover national borders and that major trading operations can take place on systems and platforms outside the United States. Your invested funds can travel quickly abroad without your knowledge. As a result, they can expand the risks, including the risk, that regulators, such as the SEC, may not be able to effectively prosecute bad actors or recover funds. “
Then followed India’s concerns, in which Finance Minister Arun Jaitley in February said India does not recognize cryptocurrencies.
A circular sent by the Central Bank of India to other banks on April 6, 2018 called on banks to sever ties with companies and exchanges related to trading or trading in cryptocurrencies.
In Britain, the FCA (Financial Conduct Authority) announced in March that it had formed a working group on cryptocurrency and would take help from the Bank of England to regulate the cryptocurrency sector.
Different laws, fiscal structures between nations
Cryptocurrencies are mainly coins or tokens launched in a cryptographic network and that can be traded worldwide. Although cryptocurrencies have more or less the same value worldwide, countries with different laws and regulations can generate differential returns for investors who may be citizens of different countries.
Different laws for investors in different countries would make the calculation of returns a cumbersome and cumbersome exercise.
This would involve an investment of time, resources and strategies that would lead to unnecessary prolongation of processes.
Instead of many countries formulating different laws for global cryptocurrencies, there should be a constitution of a uniform global regulatory authority with laws that apply at borders. This measure would play an important role in improving the legal business of cryptocurrencies around the world.
Organizations with global goals such as the UN (United Nations), the World Trade Organization (WTO), the World Economic Forum (WEF) and the International Trade Organization (ITO) have already played an important role in the union of the world on different fronts.
Cryptocurrencies were formed with the basic idea of transferring funds around the world. They have a more or less similar value among the stock exchanges, except for insignificant arbitrage.
A global regulatory authority to regulate cryptocurrencies around the world is the need of the hour and can establish global rules to regulate the new mode of financing ideas. Right now, all countries are trying to regulate virtual currencies through legislation, the drafting of which is in progress.
If economic superpowers with other countries manage to agree on the introduction of a regulatory authority with laws that know no national borders, this would be one of the biggest advances in designing a cryptography-friendly world and enhancing the use of one of the technologies. smarter transparent. May system ???? – â ???? the blockchain.
A universal regulation consisting of subparts related to cryptocurrency trading, returns, taxes, penalties, KYC procedures, laws related to exchanges and penalties for illegal piracy can provide us with the following: advantages.
It can make the calculation of profits very easy for investors around the world, as there would be no differences in net profits due to uniform tax structures.
Countries around the world may agree to distribute a certain portion of the profits as taxes. Therefore, the proportion of countries on taxes collected would be uniform worldwide.
It could save time spent setting up numerous committees, drafting bills followed by discussions in the legislative realm (such as Parliament in India and Senate in the United States).
No need to go through exhausting tax laws in each and every country. Particularly those involved in multinational trade.
Even companies offering tokens or ICOs would comply with the aforementioned “international law”. Therefore, the calculation of post-tax income would be a walk for businesses
A global structure would require more companies to have better ideas, thus increasing employment opportunities around the world.
The law may be assisted by an international oversight body or regulator of world currencies, which may have the power to blacklist an ICO offer that does not adhere to the rules.
Not all are advantages when it comes to a law that would govern cryptocurrencies around the world. There are certain ones disadvantages too.
Bringing together the world’s financial leaders to come together and draft a law may take a long time. Discussing and reaching consensus can be a challenge
Countries or economies that provide tax-free structures may not accept the law that provides for a universal tax policy.
Global surveillance or interference by the regulatory authority in monitoring the evolution of ICO-related regulations may not go well with some countries.
Universal law can cause the world to be divided into factions. Countries that do not support cryptocurrencies such as China may not be part of it.
The law may be the idea of economically strong nations that could design it to suit their best interests.
This law would be centralized with a global regulatory body as opposed to decentralized cryptocurrencies.
The world has been together to improve. Either making a peaceful world after World War II, or coming together to get better laws and trade treaties.
The International Trade Organization (ITO), the World Trade Organization and the World Economic Forum have some of the best brains that define the world economy.
They can come together and be part of a body that would define the economic prosperity of the world. They would help draft global cryptocurrency standards and could be part of the regulatory body that would be the guide and beacon for thousands of ICOs around the world to improve. Initially, this may take a long time, but it will make things easier for the next few times.