The recent happenings in the crypto space have constantly sent countries and lawmakers scrambling to make laws that protect their lands and finances from the brutal hit of the bearish trend. The rules and policies got harsher when FTX filed for bankruptcy, creating a massive dent in the global crypto market. The company was responsible for pulling down the prices of crypto coins and, unfortunately, dragged down other companies as it crashed.
Now, with news of BlockFi, a Crypto Lending company filing for bankruptcy, and Israel laying out its recommendations for crypto regulation, it leaves you wondering how many countries will follow suit in making tighter laws on their finance and crypto space.
Israel’s Recommendations For Regulations
The chief economist made the recommendations for the regulations of the country in a bid to practice a safe adoption of crypto. A majority of the recommendations were to call for more laws to help create a comprehensive regulatory framework that would ensure crypto issuers and crypto trading platforms stuck to the rules and give back more power to the financial regulators in the country.
Israel may adopt a stricter licensing system for the crypto trading industry and the issuers of cryptocurrencies while also ensuring that digital assets’ funding is appropriately secured and managed. A recommendation of financial supervisors being authorized to oversee the country’s licensing rules while delving into creating a comprehensive taxation framework for buying and selling digital assets.
While Israel has been lauded for being a tech-savvy country, they are just taking their time to get into crypto. With the current bearish trend, the most important thing is to ensure that cryptocurrency adoption is controlled and regulated, with as little a chance for disaster in the Israel finance market as possible.
What The Regulatory Laws Are Currently Like In A Few Countries
The US announced a new regulatory framework this year. It handed the majority of the power to the already existing market regulators like the SEC and the CFTC, who have made plans to regulate and control the crypto market, with a possibility of them coming down hard on the crypto space shortly, putting a slight disruption in the path of those creating new coins. The US isn’t seeking to get rid of cryptocurrency, but crypto is known to be incompatible with securities laws, so there have to be regulations put in place to control it.
Japan is one country that took a friendly and progressive approach to the adoption and regulation of crypto, with orders put in place to recognize cryptocurrencies as legal properties putting them under the Payment Service Act (PSA) while ensuring that crypto trading exchanges are made to register with the Financial Service Agency (FSA).
Earnings from cryptocurrencies in Japan are treated as miscellaneous income, and the investors are taxed accordingly.
China, however, took a more aggressive approach to cryptocurrency by going all out to plan a complete ban on the trading of crypto in the country, which is in contrast to Hong Kong. It has clarified that it would like to be known as a crypto hub while making plans to adopt crypto into its ecosystem and create healthy laws for it.
Singapore considers cryptocurrencies as properties, but they do not view them as legal tenders, so they are regulated by the Payment Service System. The country has a reputation as a cryptocurrency-safe space, as long-term capital gains do not have taxes attached to them.
Crypto traders and exchanges, however, received a shock when in 2022, a guidance was issued to warn against advertising services to the public.
Australia takes the same stand as Japan and classifies them as legal properties, making them subject to capital gains tax laws. The country allows exchanges to be free to operate in the country as long as they are registered with the Australian transaction reports and analysis center.
Conclusion
The laws these countries currently have on crypto have a chance of being changed due to the heavy hits that the crypto market has been taking lately. Still, they could also remain the same as most of these countries made these laws, especially those friendly to crypto knowing how volatile the market was, so they may leave the regulations just as is, but there is always the possibility.
