Crypto regulation is a hurdle many crypto traders believe that once complete, will usher in a new era of continually Bullish crypto markets as was seen last year in December and early January this year. The countries so far that have shown willingness to regulate cryptocurrencies, exchanges and blockchain technology are the countries of Malta, Philippines, Thailand, South Korea, Japan, Australia and to some extent, the United States and the European Union.
Of particular interest, are the countries of the Philippines and Australia. The former country had recently given guidelines on how it will be issuing licenses to crypto currency exchanges in the country. Initially, the country’s regulatory arm known as the Cagayan Economic Zone Authority (CEZA), had stated it would only issue 10 licenses to crypto exchanges. This was however increased to 25 after the government listened to the popular opinion of its citizens.
It is with this background that The Bangko Sentral ng Pilipinas (BSP) has approved two new virtual currency exchanges in the country. These two exchanges are the Virtual Currency Philippines Inc. and ETranss. The total number of exchanges in the country now stands at 5. This approval signals a new trend around the globe, of governments becoming friendlier to crypto currency trading.
With respect to Australia, the country’s tax agency, The Australian Tax Office (ATO) has stated that it will start investigating its citizens who are hiding their cryptocurrency gains offshore in other jurisdictions. The ATO will use advanced data-matching techniques through existing data sharing agreements with other nations to facilitate the further identification of these hidden funds and means of taxing them.
ATO’s Acting Deputy Commissioner, Martin Jacobs, is quoted as saying:
Where people attempt to deliberately avoid these obligations we will attempt to take action. We have a range of existing powers that are designed to address unexplained wealth and conspicuous consumption that may arise through profits derived through cryptocurrency investment.
The ATO is now free to exercise its mandate in the crypto industry after the passing of new crypto regulation in the country. Part of the new legislation makes it mandatory for crypto exchanges in the country to register on the Digital Currency Exchange Register. This register is in turn maintained by the Australian Transactions and Reporting Analysis Center (AUSTRAC).
In summary, more governments across the globe are beginning to see the proverbial light by issuing crypto regulation and eventually taxing gains from trading. At first the taxation part of it all will put off individual traders but with government direction, comes the institutional investors everyone is waiting for in the crypto-verse.