The Indian government has released a list of 26 bills for the forthcoming winter session of Parliament, which will begin on November 29, one of which is the much-discussed measure to regulate and prohibit Bitcoin hosting in India.
The Cryptocurrency and Regulation of Official Digital Currency Bill, according to a PTI report, aims to restrict all but a few private cryptocurrencies in order to develop underlying technology while allowing the RBI to create an official digital currency.
As a result of the news, crypto stakeholders have urged the government to take a “nuanced approach” to regulating crypto assets in India.
Regulations in the United States are divided between the federal and state governments (similar to India); hence rules vary from state to state. To hold, purchase, trade, or send cryptocurrency, businesses must first obtain a license from the New York State Department of Financial Services.
China has taken the toughest stance on cryptocurrencies, going from allowing crypto mining to outright prohibiting it as of June 2021. According to estimates, the move had such an impact that it shut down 40% of all crypto mining operations. The country is working on a digital Yuan (a digital equivalent of its fiat currency), and real-world experiments of the centrally regulated cryptocurrency have already begun.
The Financial Conduct Authority (FCA), which gives licenses to crypto companies and exchanges, is now in charge of regulating cryptocurrencies in the United Kingdom.
The FCA has a “rigorous set of standards,” especially for individuals who trade crypto futures and options (F&O). It also warns investors about the risks of cryptocurrencies on a regular basis and advises them to proceed with caution.
The regulation is difficult because the issues of interest are split between the member countries and the Union. While most EU countries have ‘soft-touch’ frameworks, the bloc as a whole is proposing a unified crypto framework.
The European Commission announced the draught Markets in Crypto-Assets Regulation (MiCA) regulation in September 2020. MiCA will treat cryptocurrency as regulated financial instruments, similar to trading and brokerage firms, necessitating regulatory clearance.