The initial coin offer on blockchain platforms has painted the world red for tech-startups around the world. A decentralized network that can allocate tokens to users who support an idea with money is both a revolution and a reward.
Profit-spinning Bitcoin became an ‘asset’ for investors in the early years of its multiple returns in 201. Capital Other cryptocurrencies such as Ethereum, Ripple and other ICOs promise better results as investors and cryptocurrency exchanges around the world pay huge sums of money to spur the opportunity to climb multiple online exchanges. (Etherium grew 88 times in 2017!)
After ICOs landed millions of dollars in startups in a matter of days, the ruling government initially chose to keep an eye on the fastest fintech development that was likely to raise millions of dollars in a very short time.
Countries around the world are pushing for regulation of cryptocurrencies
But as ICOs began to withdraw billions of dollars in funding, regulators became wary of technologies and their underlying effects. – â ???? That too in the proposed plans written in the White Paper.
It was at the end of 2017 that governments around the world missed the opportunity to intervene. While China has completely banned cryptocurrency, the SEC (Securities and Exchange Commission) in the United States has raised the issue of risk for vulnerable investors and proposed treating them as securities.
A recent warning statement issued in December by SEC chairman Jay Clayton warned investors not to mention,
“Please also acknowledge that these markets have national borders and can be significant trades on systems and platforms outside the United States. Your invested funds can travel abroad quickly without your knowledge. As a result, risks can be increased, including SEC, including market risk.” Regulators may not be able to effectively track down bad actors or recover funds. “
India’s concerns were then expressed, with Finance Minister Arun Jaitley saying in February that India does not recognize cryptocurrencies.
A notification sent by the Central Bank of India to other banks on April, 2018 asked banks to sever ties with companies and exchanges involved in cryptocurrency transactions or transactions.
In Britain, the FCA (Financial Conduct Authority) announced in March that it had formed a cryptocurrency task force and would enlist the help of the Bank of England to regulate the cryptocurrency sector.
Different laws, tax structures across the country
Cryptocurrencies are currencies or tokens that are introduced into a cryptographic network and can be traded worldwide. Although cryptocurrencies have more or less the same values worldwide, countries with different laws and regulations may offer different returns for investors who may be citizens of different countries.
For investors in different countries, different laws make the calculation of returns tedious and complicated.
This involves investing time, resources and strategies to unnecessarily lengthen processes.
Instead of many countries enacting different laws for global cryptocurrencies, there should be a unified global regulatory authority with laws applicable across borders. The move will play a key role in boosting legal cryptocurrency trading around the world.
Organizations such as UNO (United Nations Organization), World Trade Organization (WTO), World Economic Forum (WEF), International Trade Organization (ITO) are already playing important roles in the world.
Cryptocurrencies were formed with the basic idea of transferring funds around the world. Except for insignificant arbitration, the exchanges have more or less similar values.
A global regulatory authority to regulate cryptocurrencies around the world is the need of the hour and it can put in place global rules to regulate the latest method of financing concepts. At the moment, each country is trying to control virtual currencies through law enforcement, the draft of which is under process.
If economic superpowers with other countries could make sense of the introduction of a regulatory authority with laws that do not know national borders, it would be the biggest success in designing a crypto-friendly world and increasing the use of one of the most transparent fintech system ever â ?? ?? – â ???? Blockchain.
A universal rule on cryptocurrency trading, returns, taxes, penalties, KYC procedures, exchange laws and penalties for illegal hacks can bring us the following: Advantages.
This can make it much easier for investors around the world to calculate profits, as there is no difference in net profit due to a uniform tax structure.
Countries around the world may agree to share a certain portion of profits as taxes. Therefore, the share of countries in the collection of taxes will be equal in the world.
The time involved in forming many committees can be saved after the drafting of the bill is discussed in the legislature (like the Parliament of India and the Senate in the United States).
Not everyone needs to pass each country’s strict tax laws. Especially those involved in multinational business.
Even token or ICO providers will comply with that ‘international law’. So, it would be a cake walk for companies to calculate after-tax income
An international framework will call on more companies to come up with better ideas, which will increase employment opportunities around the world.
The law could be assisted by a regulator for international surveillance or global currency, which may have the power to blacklist an ICO proposal that does not comply with the rules.
That’s not all the advantage, when it comes to any law that governs cryptocurrencies around the world. There is something Difficulty E.g.
It may be time for world financial leaders to come together and draft a law. Discussing and reducing their sensations can be a challenge
Countries or economies that provide duty-free structures cannot agree to enact laws that provide universal tax policies.
Global watchdog or regulatory intervention in ICO-related regulatory development monitoring may not go well with some countries
Universal law can divide the world into factions. Countries that do not support cryptocurrencies like China may not be part of it.
The law may belong to the brains of economically powerful countries who can design it for their best interests.
This law is a global regulatory body like cryptocurrency that is decentralized in nature.
The world has gotten better together. Whether it was to build a peaceful world after World War II or to unite 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 brains that define the global economy.
They can come together and be part of a body that will define the economic prosperity of the world. They will help draft global cryptocurrency policies and become part of a regulatory body that will become a guide and beacon for thousands of ICOs around the world for the better. Initially it may take time but times will become easier.