New Regulations 2020
Rising numbers of COVID-19 have caused a lot of countries to face economic turmoil as factories are shut down and citizens are put on lockdown. A global recession has been declared by the International Monetary Fund (IMF) as more than 80 countries have requested financial help. Trillions of dollars are needed for bailouts and stimulus packages to keep these countries afloat. So far 10 countries have started actively regulating cryptocurrencies since the outbreak.
The Monetary Authority of Singapore has put a six-month grace period on the exemption from holding a license. Exchanges such as Coinbase, Bitstamp, Upbit, Binance, Luno, and Wirex will benefit from this exemption.- Japan and Malaysia have approved new crypto exchanges.
- Germany is now allowing companies to apply for authorization to offer a crypto custody service.
- China has reported on the risks of cryptocurrencies and is looking into reports of fake volumes at exchanges.
- South Korea is starting a pilot program for its national digital currency. This came after approval of a bill by the South Korean government to regulate cryptocurrencies.
- The United States and the Philippines, along with the Securities and Exchange Commission (SEC), are issuing warnings to cryptocurrency scams.
- Russia has completed a cryptocurrency bill that will regulate exchanges and miners.
- The EU’s Anti-Money Laundering (AML) rules now apply to cryptocurrency exchanges.
- Canada issues guidance to crypto exchanges to help determine if transactions are subject to securities laws.
- India’s Supreme Court overturns the Reserve Bank of India’s ban on cryptocurrency. Notable given almost 10% of all Bitcoin transactions occur in India.
These new regulations should give individuals, banks, and other financial institutions the green light to invest in this rapidly growing financial sector previously banned or restricted.