Cryptocurrency regulation in AsiaColin Baseman
The popularity and spread of cryptocurrencies are growing, the legislation of various countries cannot leave this area in gray. The policy of Asian States in relation to digital money is different from country to country. Let’s take a look at countries that have adopted laws concerning cryptographic currencies.
Cryptocurrency regulation in China
The Central Bank of China in 2017 banned the ICO. If the company has already conducted the initial coin offering, it is obliged to return the investors their funds. Subsequently, they introduced the ban on direct transactions for buying and selling bitcoin for Yuan.
A representative of the Bank of China in the spring of 2018 said that the regulator does not recognize cryptographic currencies as a means of payment. These financial products are considered "unreliable" and they can lead to unpredictable negative consequences in the financial market.
The Agency for The Supervision of Information Security began to monitor the activities of cryptocurrency platforms from other countries and local platforms that have moved their work abroad. This decision was made to combat financial pyramids, investment fraud and money laundering on platforms available to the Chinese.
The prohibitive policy of the authorities led to the almost complete disappearance of the market of cryptographic currencies in mid-2018. Beijing without any risks managed to liquidate 85 sites and almost 90 exchanges of cryptographic currencies. All of them conducted ICO and successfully functioned in 2017.
Regulation in India
The Reserve Bank of India (RBI) has issued a ban on the use of cryptocurrency by local financial institutions. Companies, whose activities are related to digital money, are obliged to stop such activities.
The Central Bank is studying the possibility of issuing the state digital currency. This decision causes dissatisfaction among many citizens. On April 6, 2018, the regulator issued a circular banning the regulation of financial institutions related to digital money.
Regulation of cryptocurrency in Vietnam
In October 2017, the Central Bank of Vietnam changed the monetary policy of the country. As a result, the circulation of cryptocurrencies has been completely banned since 2018. The fine for the violation is $ 9,000.
In Vietnam, there is a ban on the import of equipment for the production of cryptocurrencies, which is caused by the state recognizing digital money illegal.
Regulation of cryptocurrency in Hong Kong
Until 2018, the state of Affairs in the field of cryptocurrencies in Hong Kong had virtually no restrictions. Therefore, many exchanges and exchange services of digital money from China began to operate here.
In February 2018, SFC (securities and futures Commission) sent letters to cryptocurrency exchange services and exchanges regarding the listing of coins without a license. The requirements were immediately met and the distressed assets were removed from the platforms. Thus, cryptocurrencies were equated to securities.
In General, it can be seen that the authorities of Asian countries are malevolently opposed to cryptocurrencies. This plays into the hands of States that support the development of coins: many move their business under their jurisdiction. Follow closely the news in the sphere of cryptocurrency regulation in China and other countries. This information can greatly affect the rate of digital money.
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