2017 was the year in which people took a keen interest in cryptocurrencies and their impact on the world’s economy. However, this increase in interest seems to have caught governments’ eyes across the globe, and government agencies are trying to find ways in which they can control the sector. As such, there has been a change in the way countries are dealing with these currencies. Where some nations are welcoming the ideas, others are carefully analyzing the situation in a bid to make the right decision, and some are adamant in their opposition to these currencies. Here is an overview as to where things stand at present.
The United States
Though there is no definite direction as to what laws govern cryptocurrencies in this country, there have been several changes over the last year that have seen the (Securities Exchange Commission) SEC take a closer look at the sector. The commission has gone ahead to educate people on the risks involved in such investments to better enable investors to make the right choice. On top of that, they have shut down a considerable number of ICOs and looked into what laws they can bring in for regulation.
The secretary of the Treasury, Steve Mnuchin, voiced his concerns that cryptocurrencies could easily get used for illegal activities such as money laundering. There is thus a concern that lack of regulation on the sector, on the part of the government, as it tries to safeguard the interests of its people. However, these concerns also trickle down to investors who are unsure of whether the agencies will look at cryptocurrencies as securities or as a currency. Only time will tell.
Switzerland
This nation has a reputation for being progressive regarding banking rights, and it is thus not a surprise that the government is embracing cryptocurrencies. In fact, the economics minister, Johan Schneider-Ammann, expressed his wishes to see the nation grow to be a crypto-nation. The government wishes for the cryptocurrency to thrive in the country, on condition that it does not affect the workings of the already existing financial markets. As such, the government set us an ICO working group early in 2018 with a bid to look into these currencies. The group aims to increase certainty in the sector while ensuring that cryptocurrencies do not alter the financial markets. The group hopes to present its findings towards the end of 2018, at which point, further decisions regarding the matter can get made.
The UK
There are plans underway to regulate cryptocurrencies in the region so that the government can have more control over such trades. One of the intended courses of action is to end the anonymity that comes with these trades. Law agencies believe that the privacy offered by these currencies enables users to evade taxes and launder money, activities that are detrimental to the progress of the region. There is a proposal to have cryptocurrency platforms to report any suspicious activities on their sites. The Treasury admitted that there was little evidence of criminal activities taking place on such sites but that it was necessary to take precautions.
Government agencies are yet to come up with ways in which they can oversee the sector without scaring off investors. With some form of control, they can monitor criminal activities on such sites in a bid to protect their citizens. However, the question that comes to users’ minds is how this oversight will affect their privacy in trades, given that confidentiality is one of the biggest motivators behind cryptocurrencies.