Since its introduction, blockchain technology has incited debates on how distributed ledger technologies should be handled. Furthermore, its continuous development and vulgarization in various industrial sectors have led to many countries to take actions in regulating its usage. As of 2019 various nations have gone down that path. However, in this second segment of ActuRegulation, the focus will be on Thailand, Germany, France, and the United States.
Just recently, the Thai Securities and Exchange Commission (SEC) has approved a list of four digital currencies legally eligible to be used in initial coin offerings (ICOs) or as basic trading pairs for exchange markets in the country. The cryptocurrencies being Bitcoin (BTC), Ethereum (ETH), Stellar (XLM) and Ripple (XRP) are household names in the crypto market. Nevertheless, these currencies cannot be used as “legal tenders” for paying off debts” as per an official statement from the Thai SEC. Additionally, in relation to its newly accepted cryptos, Thailand only has three approved exchanges being, Exchange Co. Ltd. (Bx), Bitkub Online Co. Ltd. (Bitkub), and Satang Corporation (Satang Pro). They are the only eligible platforms for crypto trading in the South Asian nation.
As mentioned in an earlier article of ours, Germany’s ministries of justice and finance have proposed to launch a state-run register in the blockchain sector. This regulatory strategy is likely to boost the development of Distributed Ledger Technology in the country. According to multiple reports, the guidelines within the proposed document has for aim to protect investors from possible abuses in the blockchain.
On another note, it’s very likely that the German government set in motion new regulations. As the usage of blockchain technology grows in the European nation, the legal protection of people who purchase blockchain-based digital bonds has become a concern for German authorities. A proposed solution has been to only allow the purchase of blockchain-based digital bonds to institutional investors.
In addition to its newly introduced bill, “Pacte Loi” which aims to set in place a framework regulating the entirety of the French crypto finance sector; Various financial regulators in the French government have called for more regulations in terms of digital assets ownership. In a recent financial committee assembly, committee president, Eric Woerth urged for improvement of French laws regarding the blockchain sector. Additionally, in the March 8th assembly, a call for systematic regulation of all blockchain-based assets users was discussed during the meeting. Although in favor of the integration of blockchain technology within the French financial system, Woerth is adamantly against the anonymous use of digital assets. Furthermore, along with Woerth, numerous French legislators have called for the bans of cryptos such as Pivx, Moreno, DeepOnion, and Zcash
Viewed as one of the European leaders in regards to blockchain regulations, this is likely not the last we will hear of France in this aspect of the blockchain.
Recently, in the U.S. state of Colorado, Governor Jared Polis approved and signed a law that exempts all cryptos from securities laws. Introduced in January of 2019, the bill back then was reported to be providing “limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens”. Now, Known as the Digital Token Act, the law has for goal to make the implementation of blockchain technology and related companies much easier, as “digital assets are not subject to securities laws that would otherwise encumber them with stricter regulation” as explained in the act.