New Crypto Laws: Changing The Landscape For The Future

*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.

New Crypto Laws: Changing The Landscape For The Future

• More countries adopt crypto legislation
• Potential for increased security and investment

In the midst of a global health crisis and fears about contamination from cash-based transactions, new crypto laws come to light. The positive use of cryptocurrencies during China’s recent coronavirus deadlock sparked hopes for fast-tracking or at least more insights into the positive experiences that virtual currencies can offer.

While crypto markets go through another low week, news on the blockchain front are not all negative. In fact, corporations continued to show interest in blockchain while governments adopted a positive stance in their crypto outlook.

Crypto Law to Counter Money Laundering in South Korea

The South Korean National Assembly passed a new law that will provide a regulatory framework for the legalization of cryptocurrencies and exchanges. This move will create regulations against money laundering, among other processes.

South Korea has been on the forefront of the cryptocurrency boom with wide-scale adoption of the technology. Surveys showed that more than a third of the working population invests in Bitcoin, Ethereum and other systems. The adoption of this legal framework highlights the increasing acceptance of blockchain and cryptocurrencies for financial services locally and internationally.

Additionally, the country has recently revealed digital currency ATMs to allow users to exchange fiat currencies for Litecoin units.

India’s Crypto Ban is Lifted  

India had a strict ban on Cryptocurrencies since 2018. However, this ban was voted unconstitutional, which helped to remove all limitations placed on crypto activity. This tactical move will try to generate a substantial level of investment in crypto-based businesses.

The originator of the ban, the Reserve Bank of India (RBI), failed to prove that crypto could damage India’s infrastructure according to the ruling made by the country’s Supreme Court. While the world moves towards a big recession, India now has the highest NPA ratio in the world and the situation seems uncertain.

However, the current state could help the crypto industry to thrive, here’s why:

• Decentralization & Transparency
• Digital Economy
• Minimum Interference
• Increased Flexibility

Germany Takes the Lead on Crypto Innovation

Germany’s amendment to the Fifth Anti-Money Laundering Directive (AMLD5) came into force at the beginning of January. This amendment allows traditional German banks to buy and sell digital assets in the same way that they handle securities like stocks and bonds.

To do so, they must first apply for a crypto license from the country’s financial regulator, BaFin. Although Germany’s crypto regulations place it at the forefront of the industry, the cost of the new crypto license may still be too high for the real drivers of innovation, that is, small businesses and start-ups. Also, foreign companies must establish a legal entity in Germany before applying for the license.

In the long-term, however, this could position Germany as a key player in the European crypto-ecosystem, if not the world.

Crypto: Between a Challenge and a Lifeline

While crypto holds many advantages for masses and governments alike, it is important to increase awareness and prevent scammers from utilising the industry to their advantage. Cryptocurrencies would stay in circulation, rather than being sold from one holder to another.

With Coronavirus casting a dark shadow over the world and economies crashing, the current global scenario is quite bleak. This, in fact, is why Satoshi Nakamoto created Bitcoin; a readily available lifeline for the people when the systems controlled by the privileged fail.

*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.