The government has decided to introduce a bill on cryptocurrencies in the winter parliament
As India prepares to regulate cryptocurrency trading, concerns are growing that the move could fail in this fast-growing and volatile industry. The government has decided to introduce legislation in the winter parliament, which is scheduled to begin on November 29, to limit and regulate domestic cryptocurrency transactions. The crypto market crashed earlier this week when the news was released but has stabilized since then. So it’s a good time to start thinking about how this highly speculative industry is regulated around the world.
The United States, like India, has a dual system of government with different laws in each state. Each state in the United States has its own laws governing cryptocurrencies, but sentiment is positive about the trading community, mostly at a national level. However, the United States is known to support business opportunities, so it is unlikely that cryptocurrency trading will be banned unless the industry poses an unmanageable risk to the existing financial system.
As in most countries, the UK does not have comprehensive laws governing cryptocurrencies. However, the current system licenses registered companies that process cryptocurrency transactions (e.g. online exchanges). Taxes on profits from these transactions, as well as other gains from foreign exchange transactions.
Trading cryptocurrencies in China is a difficult undertaking. After allowing people to trade or mine cryptocurrencies for the first time, it began penalizing mining activity earlier this year and banned trading in June. Most of the critical infrastructure miners have reportedly had to travel overseas to resume operations. China is developing a digital version of the RMB currency and testing a centrally regulated cryptocurrency.
As it is a group of 27 Member States (after the withdrawal of the UK), it is difficult to pass legislation that will apply to all Member States. Member States have their own frameworks for dealing with this emerging industry, but the bloc generally considers a collective approach. The European Commission published a draft law on cryptocurrency regulation (MiCA) in September 2020. When it comes into effect, the law treats cryptocurrencies as regulated financial instruments and requires official approval.
In September, South America became the first country in the world to officially introduce Bitcoin as a legal tender along with the US dollar. President Naib Bukele has positioned Bitcoin as a way to reduce poverty and attract more people to the banking network. There is a problem with placing bitcoins