International regulation
of cryptocurrencies
Disclaimer: This article is not intended to be a source of advice or credit analysis with respect to the material presented, and the information does not constitute investment advice.
June was the hottest month of 2019 and this statement not related to weather. Bitcoin has arranged great bull run and new official record has reached the price of $13 800!

The main 40% of growth drivers for BTC mass-media linked to launch of Facebook's cryptocurrency, which is, by the way, well-received by the society like call to action, provoked a mass-pump.

Besides the information from Mark Zuckerberg, Facebook's founder, we made one step closer to start trading of bitcoin futures, for the reason the first CFTC permission issued. Likewise, FATF announced rules for the international regulation of cryptocurrencies (FATF is an international organization that works for development of measures to combat money laundering) and first of all it will turn to work of crypto exchanges.

The events of June were in a time warp back to next month: the hearing related to Libra would take place on 16 July in 2019. Bitcoin futures will be launched on July 22 at the crypto currency platform from BAKKT, these two powerful drivers will have an extremely positive impact on the crypto industry, its undoubtedly should be used.

First, let's make a brief overview of innovations in different countries.

Law of trading by cryptocurrencies has been slow to accept In Russia. Nevertheless, the government looks forward to adopting the document till the end of spring session (until July 25, 2019).

The curtain of mystery was opened by Alexey Moiseev, Deputy Minister of Finance, about two weeks ago (June 23). He said that issue of using virtual money — to reject it or allow to buy – will be solved. The authorities discuss this issue with the Bank of Russia and FSB.

However, it is still unclear how real these forecasts are. We can only observe that Russian officials take a wait-and-see position and focus on more global processes (G7 summit (August 2019) where regulation of cryptocurrencies will be on topic).

As soon as a "political decision" on this issue is made, responsibility for illegal activities with the use of cryptocurrency in the draft legislation will be prescribed. While miners and other crypto currency businessmen can sleep peacefully.

In other countries' position of regulators is less tolerant. For example, India has prepared a bill, on which cryptocurrency is prohibited not only to trade, but also to own – in case of non-compliance; in the worst case, a person can go to prison for 10 years.
As said before, in India storage of crypto currency leads to deprivation of a person's liberty, in Australia, it can cause deprivation of money. Australian paid a tax of $100 000 for ownership of crypto assets in value of $20 000. This happened for the reason of rules from the Australian tax administration (ATO), according to which it is necessary to declare the value of assets at the time of their reception. Australian bought BTC in January 2018 and paid a tax based on that time value. But in the period of filing the Declaration, his funds fell to $20 000! Don't you think it is a unique story?
The Australian tax office considered an Ethereum Classic to be the original chain of Ethereum currency and convinced that everyone, who owned Ethereum during the fork period, purchased it for the price of $0. This means, in case people sell Ethereum, they will be required to pay taxes for capital gains at the rate of 100% of the amount received. The same thing applies to other forks. ATO closely monitors all Australian citizens, publishing announcement that all people, who hide their income from trading by cryptocurrencies in offshore, will be prosecuted.

This country is one of the main places of the crypto currency markets and residence of the largest mining pools. However, the rhetoric of the authorities in relation to cryptocurrencies can hardly be called soft. China plans to prohibit the mining of digital money. The production of virtual currencies was included in the list of activities, that will be banned in China by January 1, 2021.

The American Government is trying to pressure the market of digital money. FINRA (Financial Industry Regulatory Authority) doesn't hurry to issue the licenses to companies, which operates in the crypto industry. By the middle of last month, the Agency postponed about 40 applications for receiving licenses.
Experts link this to uncertainty in the regulation of digital money by the commission on securities and American exchanges (SEC). And besides, the regulator issued in spring a guide to identify tokens-securities. One of the key criteria was the expectation of income from the token.
South Korea

In June, the Commission of fair trading obliged crypto exchanges to compensate users for any losses, associated with the operation of the platforms. It is no matter whether we talk about technical failures, hacker attacks or any other fraudulent activities.

Previously, platforms had to compensate customers only if their guilt was proven. At least, users got a more significant guarantee, in case of money loss platforms had to pay damages in value of full volume.

In 2020, the Japanese authorities intend to tighten the legislation on cryptocurrencies in order to protect consumers.

Soon cryptocurrencies will be called "crypto assets", not virtual currencies, and the maximum size of financial shoulder will be once again reduced.

All regulatory activity of individual States is inseparably linked with the activities of transnational institutions.
On 21 June the international group in the fight against money laundering (FATF) has provided a set of rules for the regulation of the crypto market. it declared a strict policy: in each country exchanges (not only related to crypto currencies) must identify the client and exchange data between exchanges. It means, a licensed cryptocurrency exchange must exchange user's ID and client's personal data. This is commonly what banks do – client transfers from his bank account to another one some amount, receiving bank will see all client's personal data, like first name, last name, place of residence, account number, etc. In blockchain, it is harder to implement, but FATF's vision: the crypto industry should turn to banking standards.

In order to implement this at the legislative level of a country, the participants received 12 months. FATF recommendations are not mandatory, but in case of non-compliance country risks dropping out of the list of FATF members-countries, which will greatly complicate its integration into the international banking system and limit the flow of foreign investment.

Countries value the status of their partners and will implement the recommendations of the FATF at the legislative level.

Moreover, there is already information that 19 countries and the European Union (G20) supported the recommendations a week after the publication of this document.

As a result, one way or another, crypto industry becomes extremely regulated, crypto-exchanges and ordinary users tighten the screws on all fronts, somewhere limiting activities, and somewhere criminally punishing. During the coming year, the turnover of exchanges will fall — "dirty" money will leave it and go to the unregulated market: small exchanges. The market will be divided into legally regulated "white" and illegally unregulated "black" or "grey". It'll throw him back.

If the majority will go under the shadow, then mass-adoption can be forgotten, because the whole sphere will be associated with criminality, illegal business. But on the other hand, if there is at least some support from regulators, the shadow part of the market will be whitewashed and this in turn will contribute to its more successful development.
For those who care about protecting their cryptocurrency assets, it will be interesting to get acquainted with the Raido Finance cryptocurrency exchange.

The European company RaidoFinance provides a reliable and transparent way to buy / sell cryptocurrency. As part of its activities, the company is guided by the KYC / AML policy. Carrying out a four-level customer verification provides the necessary level of interaction with the digital world.

The company is registered in the Republic of Estonia and has a number of licenses, thanks to which the company's clients can obtain all the necessary documents to confirm income. Which means: protecting your funds; the legal status of the purchase / sale of cryptocurrency; and also provides an opportunity to confirm the origin of income.

All these advantages will be appreciated by users of cryptoindustry.

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