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Regulatory and compliance issues have always been one of the most controversial topics in the cryptocurrency space, and it has been the front and center problem in the context of issues like Libra, a Bitcoin ETF, and initial coin offerings. Some believe that regulatory challenges were the biggest hurdle for crypto investment to go mainstream. Others argue that crypto-related products must be well regulated before entering the mainstream investment market. So, is there a middle ground on this? Meanwhile, we’ve seen the US and Asia have some very different approaches when it comes to crypto regulations. What’s the latest trend in the crypto compliance world? And how can it impact the future of the crypto industry?
Very Different Landscapes
The institutional and retail interest in cryptocurrency investing has been growing rapidly over the past years. Despite the high volatility and price fluctuations, global investors have been looking for a proper and legitimate way to tap into this emerging asset class, with the high demand for crypto interest too huge to ignore. Geographically, Asia, the US, and Europe all have very different approaches when it comes to regulations on cryptocurrency. So let’s have a brief review of their approaches.
As the fastest growing crypto region, Asia has the widest regulation spectrum than any other region in the world. Japan has created one of the most crypto-friendly environments and widely considers Bitcoin as legal tender. The country passed a law in mid-2017 recognizing cryptocurrencies as legal property. In late 2018, Japan also approved self-regulation for the crypto industry. In contrast, China completely banned all Bitcoin transactions in 2013, and later in 2017, the country outlawed initial coin offerings (ICOs). However, Hong Kong and Singapore have adopted a relatively open position.