ICO on blockchain platforms painted the world red for tech startups around the world. The decentralized network that can assign tokens to users who simultaneously support an idea with money is revolutionizing and giving it away.
Profit-taking bitcoin turned out to be the “asset” of early investors offering multiple returns in 2017. Investors and cryptocurrency exchanges around the world took advantage of the opportunity to spell out massive returns for themselves which led to the rise of many online exchanges. Other cryptocurrencies like Ethereum, Ripple, and other ICOs promise better results. (Ethereum grew more than 88 times in 2017!)
While ICOs landed millions of dollars in the hands of startups within days, ruling governments initially chose to monitor the fastest development in fintech ever that had the potential to raise millions of dollars within a very short period of time.
Countries around the world are considering regulating cryptocurrencies
But regulators have become wary because the technology and its underlying effects have gained popularity as ICOs have begun to contemplate billions of dollars in funds – this too on proposed plans written in white papers.
In late 2017, governments around the world seized the opportunity to intervene. While China has banned cryptocurrencies altogether, the US Securities and Exchange Commission has highlighted the risks to vulnerable investors and suggested treating them as securities.
A recent cautionary statement issued by SEC Chairman Jay Clayton in December warned investors that:
“Please also be aware that these markets span across national borders and that significant trading may occur on systems and platforms outside of the United States. Your invested money may rapidly move abroad without your knowledge. As a result, risks can be exaggerated, including market risks that regulators may not be able to do. , Such as the Securities and Exchange Commission, from tracking bad actors or effectively recovering funds. “
India’s concerns followed, with Finance Minister Aaron Gaitley saying in February that India does not recognize cryptocurrencies.
A circular request sent by the Central Bank of India to other banks on April 6, 2018, from banks to sever ties with companies and exchanges involved in trading or dealing in cryptocurrencies.
In Britain, the FCA (Financial Conduct Authority) announced in March that it had formed a cryptocurrency task force and would be receiving assistance from the Bank of England to regulate the cryptocurrency sector.
Different laws, tax structures across countries
Cryptocurrencies are mainly coins or tokens launched on a crypto network and can be traded globally. While cryptocurrencies have roughly the same value around the world, countries with different laws and regulations can offer varying returns to investors who may be citizens of different countries.
Different laws of investors from different countries can make calculating returns cumbersome and cumbersome.
This will include the investment of time, resources and strategies that lead to unnecessary elongation of operations.
Instead of many countries formulating different laws for global cryptocurrencies, there should be a constitution for a unified global regulatory authority with laws that apply across borders. Such a move would play an important role in boosting legal digital currency trading operations around the world.
Organizations with global goals such as UNO (United Nations Organization), World Trade Organization (WTO), World Economic Forum (WEF) and International Trade Organization (ITO) are already playing an important role in uniting the world on different fronts.
Cryptocurrencies were formed with the basic idea of transferring money around the world. They have a fairly similar value across exchanges, except for the arbitrage that is negligible.
Having a global regulatory authority to regulate cryptocurrencies around the world is the need of the hour and may set global rules to regulate the latest method of financing ideas. Currently, every country is trying to regulate virtual currencies through legislation, which is being drafted.
If economic superpowers, along with other countries, can build consensus on introducing regulatory authority with laws that know no national borders, this would be one of the biggest achievements toward designing a cryptocurrency-friendly world and promoting the use of one of the most transparent financial technologies. Order ever blockchain.
A global regulation consisting of subsections related to cryptocurrency trading, returns, taxes, penalties, KYC procedures, laws on exchange and penalties for illegal breaches can provide us with the following: Advantages.
It can make calculating profits very easy for investors around the world, as there would be no difference in net profits due to standardized tax structures.
Countries around the world may agree to share a certain portion of the profits as taxes. Therefore, countries ’share of taxes collected will be uniform across the world.
It could save time in forming various committees, drafting bills followed by discussions in the legislative arena (such as Parliament in India and the Senate in the United States).
One does not need to be subject to strict tax laws in every country. Especially those who are involved in the multinational trade.
Even companies offering tokens or ICOs will comply with said “international law”. Therefore, calculating income after taxes will be a bun march for companies
The global structure may require more companies coming up with better ideas, and thus more business opportunities around the world.
The law may be assisted by an international watchdog or a global currency regulator, which may have powers to blacklist an ICO offering that does not adhere to the standards.
Not all of the advantages, when it comes to a law governing cryptocurrencies around the world. There are some Negatives As well.
It could take a long time to unite the world’s financial leaders to meet and formulate a law. Discussions and reaching consensus can be difficult
Countries or economies that provide tax-free structures may not agree to accept a law that provides for a comprehensive tax policy
Global regulators or regulatory authority interference in monitoring ICO-related regulatory developments may not go well with some countries
Global law may divide the world into factions. Countries that do not support cryptocurrency like China may not be part of it.
The law may be the brainchild of economically powerful states that may design it to suit their best interests.
This law will be a central law with a global regulatory body unlike cryptocurrencies of a decentralized nature.
The world together was for the better. Whether it’s for building a peaceful world after World War II, or working together for better trade laws and treaties.
The International Trade Organization (ITO), the World Trade Organization, and the World Economic Forum have some of the best minds defining the global economy.
They can come together and be part of a body that defines the economic prosperity of the world. They will help shape global cryptocurrency standards and may be part of the regulatory body that will be the guide and beacon for thousands of ICOs around the world for the better. At first, this might take a long time, but it will make things easy in the coming times.