PrivacySwap welcomes the crypto mass adoption as governments begin regulating this currency.
Governments from different countries are starting to acknowledge the viability of cryptocurrencies. In fact, some are already regulating digital assets. With that, PrivacySwap welcomes the inevitability of mass adoption and shares our moves to ride that wave.
Now that cryptocurrency is starting to bloom, the government is stepping in to regulate by laying out various crypto-related rules. This government involvement in cryptocurrency has its good points.
For example, government regulation will make crypto transactions much safer and more reliable. On the other hand, some say that government involvement could cause more inflation to the digital asset or possible taxation. Let’s take a look at some current news regarding government regulation on cryptocurrency and its relevance to PrivacySwap’s vision.
Italy’s Anti-Money Laundering Provisions
Italy recently rolled out its Anti-Money Laundering (AML) rules for companies that offer crypto-related services. The laws, which were passed in January, specify registration and reporting criteria for virtual asset service providers (VASP). These laws should also be consistent with the European Union’s fifth anti-money laundering (AML) directive and the Financial Action Task Force (FATF) guidelines for crypto businesses.
Their publication in Italy’s official journal of record shows that the guidelines are ready to be implemented. The document states that firms should register themselves to the roster should they offer any crypto-related service.
What is the essence of this type of law?
Money laundering can easily be executed by criminals as the digital assets transactions are done online. The borderless ecosystem and the lack of intermediaries also ease the transaction. Online transactions eliminate the need to carry unlawful money from one location to another physically. As a result, it is practical and straightforward.
The recent squid game rug pull is one of the best examples. Developers of this platform quickly took away all the user’s funds and sent them from one wallet to another without undergoing banks or CeFi transactions. Considering how easy crypto-scamming is, crypto-related crimes became rampant last year.
Moreover, those ignorant of the law can also be subject to money laundering accusations without them knowing. Earning in cryptocurrency is endless and could give you a fantastic return.
Selling NFT alone could value tens of thousands of dollars. Without a good source of income disclosed to the government, the bureau will become suspicious of how you can earn that money instantly. Though the government does not regulate cryptocurrency, they still investigate everybody’s finances for proper and fair taxation.
With Anti Money Laundering rules, the government is aware of where everyone’s finances are coming from. Thus, the proper tax could be implemented.
Going back to Italy’s AML, it includes a requirement that does not align with the European Union’s passportable license for VASPs. According to the document, all companies must comply with Article 17-bis of a 2008 directive relating to credit contracts to qualify for registration in the special roster for recognized VASPs in Italy.
According to the Article, to register as an approved VASP, any VASP from another EU country must have a permanent establishment in Italy.
According to a report on the new laws released by Lexia Avvocati, an independent Italian law practice, stabile organizzazione refers to a branch or subsidiary.
South American countries’’ crypto adoption and regulation
South America has adopted cryptocurrency. Uruguay recently launched its first crypto-accepting ATMs. Rio de Janeiro’s Mayor also announced his pledge to invest 1% of their treasury in cryptocurrency.
Aside from these, more countries and cities from this continent also show interest in cryptocurrency, which significantly affects their tourism and GDP.
Meanwhile in Asia
There are also new regulations implemented in Asia to mitigate digital assets. In Singapore, the Payment Service Act (PSA) established a law requiring a firm to acquire a license to execute crypto transactions, storage, or exchanges.
All cryptocurrency trades in Malaysia must comply with the Securities Commission Malaysia (SC Malaysia) and Bank Negara Malaysia (BNM). SC Malaysia has also been vigilant in regulating ICOs (Initial Coin Offerings) to promote fair trade.
Following an increased reaction in the crypto trade in the Philippines, the BSP has introduced new guidelines to promote financial services through digital assets. Other laws were also enacted, including a two-tiered ICO evaluation.
Lastly, we cannot forget China’s announcement regarding the banning of crypto transactions. Countries such as Algeria, Bangladesh, Egypt, Iraq, Morocco, Nepal, Qatar, and Tunisia prohibited cryptocurrency transactions following China.
Since more and more governments from all over the world have announced crypto regulations, people are also showing interest in cryptocurrency. Previously, some were reluctant to invest in the ecosystem as it lacks government regulation, leading to possible scams or fraud.
More new investors might also start paying attention to the ecosystem with the government’s involvement. The government could also provide clear guidance to enable businesses to develop in the crypto economy while addressing environmental concerns associated with crypto mining.
We at PrivacySwap also envision a safer crypto transaction. We know that cryptocurrency is already secured. However, not everybody is aware of that. So, we share the words through these contents.
In addition, we also release features that could quickly adapt to the highly progressive DeFi ecosystem without bypassing any government-related laws. With the release of our DEX, we ensure that everything has been checked correctly by the professionals to ensure fund security. Lastly, while waiting for the rest of the world to adopt crypto-accepting ATMs, we have already built a debit card acceptable in any ATMs worldwide. Our crypto-accepting debit cards are usable in both blockchain and real-world transactions.
This introduces better crypto to fiat transactions while ensuring compliance with the world’s traditional finance regulations.
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