Blockchain and Cryptocurrency Regulations in Developed Countries with the Largest Crypto Markets
Malaysia; Cryptocurrencies as Securities
Malaysia is among the countries that has recently published its regulations about encryption industry and cryptocurrencies. As of January 15, cryptocurrencies are considered as a type of security in the country of Malaysia. This means that from this date on, cryptocurrencies will be within the purview of securities and exchange commission of Malaysia. Cryptocurrency exchanges and projects that revolve around ICOs and continue their activities without any confirmation from this regulatory commission will be sentenced to 10 years in prison and a fine up to $2.4 million. Altogether, it seems that these changes are headed toward the right direction. Lim Guan Eng, Malaysia’s secretary of Treasury, said that the government of Malaysia has understood the great potential of cryptocurrencies and Blockchain technology for improving the domestic economy of the country:
“Malaysia’s Department of Treasury has been able to see the digital assets and its infrastructure technology, namely Blockchain technology, and has understood that these two fields have a great potential to revolutionize the old and new industries. Also, we believe that digital assets can play a fundamental role for entrepreneurs and new businesses in the field of new methods for collecting fund, and they could be an alternative asset class for investors.”
Singapore; Cryptocurrencies Are Illegal and Unregulated
Singapore has one of the most booming cryptocurrency markets. At the end of 2018, the large Korean exchange Upbit and the large Chinese exchange Binance stated that they were attempting to grow their businesses and establishing an office in this country. At this time, in the month of November, the Monetary Authority of Singapore (MAS) extended the current regulatory laws of the country on order to be able to bring some certain cryptocurrencies within their legal jurisdiction. To this end, the central bank of Singapore proposed an obligatory license law for payment service providers; that is, providers must submit for one of the three proposed licenses based on the nature and scale of their digital activities; however, the Monetary Authority of Singapore had already stated that cryptocurrencies are not legal in this country, and this agency will not engage in the related regulation.
Italy; No Regulation in the Field of Cryptocurrencies
On January 23, 2019, a committee in the parliament of Italy proposed an amendment for the Blockchain industry which is basically Italy’s first step toward regulating the cryptocurrency industry, and thus Italy entered the group of Blockchain countries. According to documents published in the official website of Senate, this amendment which is called Decreto Semplificazioni, i.e., or simplifying laws, offers in its own right the foundational laws for the cryptocurrency industry including Distributed Ledger Technology (DLT) and also a clear definition of smart contracts. It is stated in these documents that registered Blockchain-based digital data, make possible the authentication of legal documents at the early stage of registering. Currently, in order for this amendment to be executed, it needs more approval from the parliament of Italy (one approval from representatives, and one approval from the Senate).
Nevertheless, there are no specific and clear laws and regulations for cryptocurrencies in Italy. However, the Department of Treasury and Finances of this country is working on a bill which intends to categorize the function and uses of cryptocurrencies in Italy. The interesting point is that this order has been defined in a special way to determine the manner and time of submitting the activity report to the government from service providers in the field of cryptocurrencies, and this means offering regulations for the parties involved. (part 4)