The landscape is continuously experiencing different changes with regards to policies adopted by different countries. For example, in the United States, Cryptocurrencies are not accepted as legal tender while cryptocurrency exchanges are legal with regulations varying from one state to another. One of the major US regulatory bodies, the Securities and Exchange Commission (SEC) has revealed that it counts cryptocurrencies to be part of securities. In March of 2018, the commission stated that it was implementing strategic security laws for digital wallets and exchanges.
The US Justice Department, the SEC, and the CFTC have a joint partnership to set up future cryptocurrency regulations to ensure adequate consumer protection and a more streamlined regulatory oversight. The US Treasury has also backed the need for regulations in the cryptocurrency market stating that it is necessary to combat global and domestic fraudulent activities.
In China, Cryptocurrencies are not considered as legal tender, and cryptocurrency exchanges are banned outrightly. In 2013, The People’s Bank of China (PBOC) banned financial institutions from carrying out Bitcoin transactions. This ban also extended to ICOs and domestic cryptocurrency exchanges in 2017. However, despite the near-total ban on crypto trading and its related activities, the law in China still allows crypto mining activities, but there are indications that this would soon be reversed.
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