Over the past three or four days there has been wild talk in cryptocurrency regulation as India, France and South Korea all witnessed pro-crypto regulations set in place. The three countries are part of the five top countries making waves in blockchain and crypto regulation in 2020 so far.
One of the favorite cryptocurrency havens, Malta, is up to implement the AMLD 5 directive –which introduces a number of KYC/AML requirements including providing customer information on transactions to authorities at request. This has seen a number of crypto exchanges including Debrit and Binance leave the country in favor of more friendly countries.
Panama is the favorite location for cryptocurrency companies as the country has lenient financial laws which gives centralized exchanges a haven to operate freely. Registering crypto exchanges in the country is easy and fast with only ~$200, 000 USD need to pay for licenses and fees.
On the fourth spot is the latest country to shine a light on the crypto field, France. After a number of warnings from the French minister of Finance on setting regulations on cryptocurrencies, the country looks set to embrace crypto in a similar way to fiat.
“I don’t like it. It can hide activities such as drug trafficking and terrorism.” – French Minister of Finance, Bruno Le Maire
A French court ruled recently that Bitcoin is a fungible asset similar to fiat currencies. This sets precedence opening up a gateway for crypto to be used for transactional purposes in the country. A big leap in the crypto industry.
China has been one of the most vocal countries in developing their own digital central bank currency. The Peoples’ Bank of China (PBoC) is making huge steps in developing a CBDC. In February, the country announced over $12.4 billion USD had been transacted on its blockchain over the cause of 12 months by over 30 financial institutions in the country.
Notwithstanding, China is currently under a great need for cryptocurrencies and blockchain technology as they battle with the highest cases of the Corona Virus (COVID-19) – to ease the transportation process of masks and other safety equipment. Moreover, the country is gradually adopting digital means of payment using crypto to avoid the spread of the virus through physical cash.
India has been one of the biggest jurisdictions opposing Bitcoin (BTC) and other private crypto payment systems, banning crypto completely. However, at the start of March, the Supreme Court lifted the ban by RBI, opening up a new world for blockchain and crypto adoption in the country. Exchanges are moving back in to the country with a huge potential market of 1 billion people staring at them.
It was India , then Korea and now France. #bitcoin now has the official status of money in France.
Due to all this "seismical shifts" in the crypto space, $btc shouldn't stay below $10k for long.
I am optimistic $btc will be legalized in other countries as time progresses.?
— Eljaboom? (@Eljaboom) March 7, 2020
Fears of money laundering and dilution of the central banks’ monetary policy powers persists across the authorities at the Reserve Bank of India (RBI) despite the recent ruling.
1. South Korea
The number one country currently experiencing huge blockchain and crypto adoption growth is South Korea. The Asian tiger fully legalized cryptocurrency transactions at the start of the week leading to a bullish momentum in the market almost instantaneously.
Is this the start of a crypto revolution across governments across the world?