(Zug, Switzerland) A unified regulatory framework for blockchain will be crucial to utilizing technology to its full potential. Most of the progress in the worldwide community depends heavily on a few blockchain-activist countries. What is the most important here – future of decentralization and protected privacy stays shaky as long as it is not legislated within the financial jurisdictions. Therefore, spectating countries like Malta and Switzerland, posting guidelines for further government and financial structures using an application to the blockchain entities, makes it feel like shifts are becoming real at least somewhere. Sadly, there are still many countries closing their doors for any blockchain enterprises, as an aggravating consequence of too much freedom crypto startups had just several months ago.
As blockchain becomes internationally recognized as an essential technology, certain governments start going towards a clear regulatory environment. They set up an example for healthy industry development and growth. So let us dive in a bit for more specifics of countries that are more likely to be trendsetters in the nearest future.
Switzerland. Commonly known as Crypto Valley, Switzerland, and city Zug specifically, is a popular cryptocurrency jurisdiction financial institutions claiming to accept crypto assets ubiquitously, though mostly with 12 – 18% in corporate tax for safekeeping.
Switzerland certainly has a blockchain-friendly attitude and was one of the first choices to conduct ICOs in 2017 – 4 out of 10 biggest ICO campaigns were run there. Currently, there are no specific registration policies for the blockchain-based companies they would be forced to align with, though a special FinTech Enterprise license is out there being developed (as promised by the guidance notes for ICOs released this February).
Luxembourg. The country has been hosting Bitcoin exchanges, such as Bitstamp since 2016, and even was the first one to grant such an institution a full payment license. Luxembourg does not have specific regulations on crypto assets, legally equalling them with any regular type of electronic money, therefore forcing them simply to comply with applicable AML/CFT laws.
The jurisdiction has cemented its place as a top crypto nation within the European Union – a number of high profile blockchain-based businesses, exchanges such as BitFlyer, have also moved to the country.
Malta. The Maltese government has launched the Malta Digital Innovation Authority in February 2018 to provide legal clarity for those companies developing blockchain-based technologies. At the same time, Malta made global headlines when announcing the Cabinet of Malta approving the Virtual Financial Assets Bill, providing a regulatory base for blockchain. First ones to support Malta in this move is Binance exchange, considered the largest by volume, that plans to move some part of its operations there. The crypto giant will though need to wait on the migration, as the regulation must take effect to apply for the license.
It is expected that banks will become less reluctant to serve the blockchain businesses as the regulations are in place and running.
What is holding other jurisdictions back from trying?
The current state of financial regulations in different countries is more than reluctant to try out the crypto and blockchain legislations. If this stays this way for much longer, initiatives can simply die out as there will not be any cash flow towards the technology.
The actual questions to understand what is the current policy must be addressed directly to representatives of different countries governments:
How do governmental decision-makers look at the blockchain industry? How can this industry affect the regional economies and how will government bodies react in this regards?
To approach answering these questions one will need to hear all the responsible government parties out in conjunction with their real practice cases. This is what is planned to do on the Blockchain Leadership Summit in Basel when representatives of 17 countries are going to introduce the first-hand ideas on the Panel Discussions on Financial Regulations. This Discussion is highly anticipated by industry players, as it will shed light upon real cases of the legislative process and might have a direct effect on one countries’ nearest future.
The organizer of the event: InnMind, the first Swiss-made global business ecosystem for the innovative community, start-up founders, experts, investors, mentors and service providers who are focused on work with innovations. Launched in 2016 in Switzerland, today InnMind connects over 25000 of industry professionals from 70+ countries worldwide.
Blockchain Leadership Summit: 23-24 November, Basel, Switzerland.
More info: https://swissblockchainsummit.com/