Countries Actively Regulating Cryptocurrency Despite Global Crisis
Despite the financial crisis and growing Corona virus breakout many countries are approving cryptocurrency regulations. The headlines have led many to believe that the newly passed crypto regulation across the globe are spread out and very recently applied. However, that's far from true. Not only have several countries signed their respective bills, the number of countries with cryptocurrency regulations has actually been growing since last year.
During the past week, two countries approved new cryptocurrency exchanges. Japan approved its 23rd crypto exchange while Malaysia followed suit and fully approved a crypto exchange operator even as the country extended the nationwide lockdown.
These are huge milestones for the crypto market but, for those still calling crypto an investment bubble, why worry? Well, the volatility of this asset class and crypto networks is certainly an issue for risk investors. Cryptocurrencies are still in the embryonic stages, with very little product to choose from as of today. When new coins are launched, these networks are often revealed just hours or days after the launch, meaning that traders may experience intense volatility and huge swings in value during an official launch.
The Monetary Authority of Singapore has granted a temporary exemption from holding a license to a number of cryptocurrency companies under the new Payment Services Act. Among the companies benefiting from this six-month grace period are Binance, Coinbase, Gemini, Bitstamp, Luno, Upbit, and Wirex.
Alongside South Korea, Cyprus has announced that it is bringing in a new regulation to the bitcoin and cryptocurrency space that will be included in its next banking regulations. The new regulations, first announced by the Central Bank of Cyprus, will largely affect how cryptocurrencies such as Bitcoin and Ethereum are traded on its financial markets. According to the Cyprus National Bank, the forthcoming regulations will clarify that any cryptocurrency exchanges and trading platforms must register as investment companies, and must comply with the local banking sector's supervisory authority, Central Bank.
As we reported in the initial roundup, Malaysia is the first country in Southeast Asia to consider regulating cryptocurrencies. Last month, the country's central bank, the Board of Investment, announced that it will "study the information [Cryptocurrencies] provide and the implications for the financial system.