Everything you need to know about how crytocurrencies are regulated around the world
Added 08-09-18 03:02:02am EST - “Regulation of the cryptocurrency space differs around the world, but some countries are trying to push ahead and become major hubs for the emerging industry.?” - Cnbc.com
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As an increasing number of people get involved with cryptocurrencies in some way, particularly retail rather than professional investors, regulators have taken a keen eye on the industry.
But it’s not just bitcoin they are looking at. The crypto-space has continued to develop with initial coin offerings (ICO), as CNBC explained in its last feature, and blockchain technology beginning to be used in large corporations.
The developments have brought a varied response from regulators across the world in a number of different areas. Each authority has looked at various parts of the crypto-world from mining to trading and assessed how they should be regulated. Here’s a quick breakdown of each of the areas regulators have been looking at.
Regulation around this relates to the way that cryptocurrencies are traded. There’s a big debate in several jurisdictions about how to classify cryptocurrencies. Are they commodities or securities? The way they are classed will determine how they are regulated under current laws.
Another area of focus for regulators has been mining operations. Mining is the process CNBC explained in its previous feature on blockchain of how cryptocurrency transactions are validated on the blockchain. Mining involves purpose-built computers and large electricity consumption, something that has concerned governments, particularly in China.
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