With the current situation of rapid growth in Technology, much is expected to happen. One thing that came about as a result of ever growing technology is Digital Currencies. It’s presence in the market has not augured well with most of the Jurisdictions Worldwide. Majority of the Countries treat digital currency transactions as Barter hence not a legal currency.
The main reason why many countries shy away from legalizing digital currencies is the fact that they are not controlled by financial institutions. Their production and regulation in the market are done using quite a good number of Computers that are placed all over the world. These Machines are not owned by one specific person or a certain group hence making it close to impossible for Government institutions to manage their operations. The transferred information is kept safe in the form of Blockchains.
What are Blockchains?
Blockchain is a collective term which means- lots of data collected and piled together from a group of computers. These computers are linked together through a process known as Cryptography. They are created in such a way that information stored in them is secure and verifiable. These exchanges of digital information lead to the formation of digital payment which would match the work done. This brought about the birth of digital currency known as Cryptocurrency.
What is Cryptocurrency?
This is a rare medium of exchange. Its main purpose is to make a payment that matches the data transferred from one end to the other. Cryptocurrency is an invention of one Satoshi Nakamoto. His first ever digital currency was Bitcoin. This invention was made to happen back in the year 2014. It has since then expanded and operated in many countries worldwide. Its successful operations lead to the formation of other alternative digital currencies to help ease the pressure on the growing demand of the Bitcoin in the market. The overwhelming presence of cryptocurrency in the market has raised eyebrows among many Authorities. This has pushed some of the Government Officials to a state to want to initiate talks on how to regulate the circulation of Cryptocurrencies in their market.
Are there specific regulations kept in place to control Cryptocurrencies?
Given the fact that digital currencies such as Ethereum, Bitcoin Cash, Bitcoin have gained fame and a significant number of clientele base Worldwide, Authorities are presented with a challenge on how to manage the operations of these Cryptocurrencies. Some Countries have deeply dug into the implications posed to the consumer and the whole market at large if these overflowing Cryptocurrencies are left to operate ungoverned.
In conclusion, to talk’s digital currencies; some Jurisdictions have found it necessary to permit the operations of Crypto Markets. As a result, Government officials from those Countries came together and formed laws to govern cryptocurrencies. They include:
- Belarus and
These countries have gone an extra mile and formed laws that control and recognizes the crypto markets. Taxing is one of the major tool used to manage Crypto markets.
Others have found no extreme alarms to warrant fixed rules on digital currency operations within their borders. These Jurisdictions are:
- France and
These Countries find it normal for people within their borders to transact business on digital platforms and at the same time use Cryptocurrency as a mode of payment. In Argentina, for example, people operate digitally using Bitcoin as a form of payment.
While a few have imposed drastic measures of banning Crypto markets operations altogether. Such countries are:
- Iran and
These Jurisdictions have given strict restrictions to their Financial Institutions not to have their hand in any Business related to Cryptocurrencies.
This helps protect both the consumer and the market in general.