With the spread of COVID-19, there has been a struggling period for the world economy. The International Monetary Fund (IMF) has revealed a recession all around the world and states that about 80 countries have requested help. However, Bitcoin trading has been rapidly increasing even during pandemic times, both manually and by using automated trading bots. But even during times of financial crisis, many countries have come up with regulations for cryptocurrencies. The good news among this is that both Malaysia and Japan have approved the functioning of cryptocurrency exchanges.
Here are the countries that declared cryptocurrency regulations despite the crisis that is prevailing all around the world.
There were many crypto businesses before the Payment Services Act came into power. They are advised to inform their business to the MAS and they are also given an exemption from the country’s licenses. Thus the Act allows these crypto businesses to go forward with their special payment services. These crypto businesses include BitStamp, Bitcoin Exchange, Ripple Labs Singapore, Binance Asia Services, Coinbase, Bit Cross, Payward, etc.
With the lockdown in Malaysia, crypto trading has increased and there has been rapid growth in trade volumes for the regulated crypto exchanges. People are trying to find platforms that have good value and this has increased the number of users. As many Malaysian businesses are closing, there is a loss of about 2.4 billion ringgits every day. But the crypto trading is flourishing in the country. The crypto asset exchange that got approved in the nation for the first time is Luno.
- South Korea
The National Assembly of South Korea has passed certain laws offering a framework to legalize and regulate crypto exchanges and assets. Thus the regulators get a chance to keep an eye on the crypto market to initiate laws for anti-money laundering.
The taxation authorities of Spain have already started to circulate notices to about 66,000 cryptocurrency asset possessors. While it was 14,700 letters in the previous year, the number has risen massively.
The BaFin or Federal Financial Supervisory Authority has launched guidelines that advise businesses to get their authorization for providing crypto services. The act came to power in January and the companies are given time to apply for authorization.
India has put in efforts to bring crypto regulations although there is already a bill to ban all cryptocurrencies other than the ones issued by the government. Therefore, the country has to get approval from the Supreme Court before making the final decision. RBI had stopped giving support to crypto trading in 2018.
The National Internet Finance Association (NIFA) is a self-regulatory body of China’s People’s Bank or PBOC. They have come up with a notice that showcases the risk crypto trading involves and asks for a GK8 Solution to safeguard all the digital assets. They also warn about the fake volumes involved in the cryptocurrency exchanges. PBOC has also completed the advancement of a digital currency of the central bank to circulate.