As the Blockchain industry continues to experience growth, more countries and corporations are adopting them to their way of living and into different aspects of their systems.
While Australia has picked the route of including it into their system of fishing out criminals, The Us and Singapore are adopting the method of creating laws around it and guiding it. While cryptocurrency might not have been fully infused into these countries, they have gone a long way if the history of distrust between the state and cryptocurrency is considered.
Australia’s Federal Police Force Joined The Crypto Train.
The Australian Federal Police took it upon themselves to open a new unit focused on fishing out crypto-related fraudulent activities.
There has been an increase in the number of fraudulent activities through cryptocurrency, hence why the AFP decided it was time to set up a team dedicated to that part of the industry.
The Australian authorities confiscated millions of dollars in crypto and various assets in Canberra after investigations had been made into a massive case of money laundering. The team received help from an American team within the Joint Chiefs of Global Tax Enforcement.
With the inclusion of cryptocurrency fraud in criminal activities in the law, crypto traders can now have somewhere to run to when they experience a case of robbery. They can be more secure as the criminals would be wary of getting caught.
Cryptocurrency platforms would be required to give up information on the assets of suspects who are found with complex substances or other illegal items.
The US And Its Regulations On Cryptocurrency.
The recognition of cryptocurrency globally has led to more countries adjusting their regulations to include and govern crypto. The blockchain space is continuously experiencing growth along with the world; however, keeping up with global regulations is still challenging.
For the United States, while it is not a straight road to the legal approach for crypto at a state level, the US is one country that is constantly evolving in federal cryptocurrency legislation. The Financial Crimes Enforcement Network (FinCEN) doesn’t consider cryptocurrencies a legal business. Still, it feels like cryptocurrency exchanges are money transmitters based on crypto tokens being other values that act as a substitute for currency.
Crypto is not considered a legal tender by the Internal Revenue Service (IRS). Still, it views it as a digital representation of value that serves as a medium of exchange or a way to store value and issue tax guidance.
Cryptocurrency Exchanges are legal in the United States and are also under the regulatory scope of the Bank Secrecy Act (BSA).
While the US recognizes crypto, every step must be legal so that the traders do not get into trouble if their exchanges are used for fraudulent activities.
The Laws On Cryptocurrency In Singapore.
For Singapore, Cryptocurrency is a welcomed concept while exchanges and trading are legal. The city and state took a friendlier approach to the issues than other countries. Although cryptocurrencies are still not viewed as legal tender, Singapore’s authorities treat Bitcoin as “goods,” and it applies Goods and Services Tax on them.
The city’s monetary authority clarified in 2017 that while their intent is not to regulate virtual currencies, they would handle the digital tokens if they were classified as securities.
While Singapore may have taken an even-handed approach, in 2020, a warning was issued by MAS to the public on the risks associated with investing in cryptocurrency, earlier this year, the notice was given once again, and guidelines to crypto service providers that effectively prohibits them from advertising their services to the public was dropped.
Why It Helps For Cryptocurrency To Gain Recognition.
The more cryptocurrency gains recognition from these countries and their laws, the more growth the blockchain industry experiences as more people find their way into the industry believing in the security of having state laws surrounding an exchange.
These countries recognize crypto and have found a way to include it in their legislation and create laws around them to regulate or use them to fight crimes. With this growth, one can only imagine how much cryptocurrency will evolve over the coming years.