Snapshot of key regulatory views on crypto in Asia Pacific

Transcription

1 Snapshot of key regulatory views on crypto in Asia Pacific MALAYSIA (POSITIVELY VIEWED BY GOVT) A recent statement by Malaysia s Bank Negara governor that Malaysia may be the next to open its doors to Bitcoin has generated substantial interest in the cryptocurrency community. This would undoubtedly increase the use of Bitcoin by many millions, as residents within the country would have access to relatively cheap payment remittance platforms that were otherwise non-existent. The Malaysia s Bank Negara governor Tan Sri Muhammad Ibrahim addressed the Global Symposium on Developing Financial Institutions saying: We hope to come out with guidelines on cryptocurrencies before the end of the year: in particular, those relating to anti-money laundering and terrorist financing. We want to ensure that there are clear guidelines for those who want to participate in this sector. SINGAPORE( REGULATIONS APPROVED BY GOVT) The city-state of Singapore is slowly becoming a favored destination for Blockchain startup companies looking to launch an Initial Coin Offering (ICO). The country has long been a center for startups due to such factors as tax-friendly regulations, light-touch rules, and state funding. The state has already hosted a number of successful ICOs in the past. THAILAND (POSITIVELY VIEWED BY GOVT) 21 sep The Securities and Exchange Commission in Thailand (SEC Thailand) has announced that it is supporting the drafting and implementation of regulations covering initial coin

2 offerings (ICO). The commission claimed that this is necessary as some coin sales may be considered as a securities offering under the country s laws. JAPAN (REGULATIONS APPROVED BY GOVT) The government of Japan amended its fund settlement law in April 2017 to allow recognition of Bitcoin as a legal payment method. Many have credited that decision with Bitcoin s extraordinary bull run this year. With that approval, the FSA was required to ensure the registration of virtual currency exchanges in the country. Exchanges must be registered by the end of September. CAMBODIA (POSITIVELY VIEWED BY GOVT) Soramitsu Co., the Japanese Blockchain identity company, has indicated that they are partnering with the National Bank of Cambodia to test distributed ledger technology in creating new and innovative payment methodologies. Soramitsu is a Fintech company and the initial creator and co-maintainer of Hyperledger Iroha, the distributed ledger platform. The joint venture is focused on applying the Linux Foundation s Hyperledger Iroha in giving currencies logic through smart contracts to create smart money, providing secure settlement infrastructure for the National Bank. VIETNAM (POSITIVELY VIEWED BY GOVT) Vietnamese Prime Minister Nguyen Xuan Phuc has reportedly authorized a plan that could lead to the official recognition of digital currencies like Bitcoin as a form of payment in the country by Based on a report by regional news services VNA, the prime minister has ordered the country s central bank, the Ministry of Finance and the Ministry of Public Safety to study and draft a legal framework to regulate virtual currencies.

3 INDONESIA (TOO EARLY TO REVIEW BY GOVT) Bitcoin Indonesia, a prominent online Bitcoin marketplace for Indonesian traders and investors, revealed a rapid development in its user base after adding over 170,000 members within 12 months. At the beginning of 2016, Bitcoin Indonesia served 80,000 active users on its marketplace. Tens of thousands of members purchased and sold Bitcoin through Bitcoin Indonesia through simplistic deposit and withdrawal methods such as bank overthe-counter cash settlement and online transfer. HONG KONG (REGULATIONS APPROVED BY GOVT) The Hong Kong government is seeking to make the leap. Charles d Haussy, the fintech lead at government economic agency InvestHK, said: Blockchain is a very high priority for us. There is hype, and there is the fast grab of money with ICOs in some cases. But what we are looking at building here in Hong Kong is an infrastructure for new businesses and existing businesses, to make sure the technology and innovations remain a key enabler for financial sector growth. Meanwhile, ICOs in the country are cropping up (for example Dragon Corp., who hopes to raise $500 mln from its upcoming ICO), as the city presents a means for companies to have a hub in east Asia without the crippling regulations that China just imposed. However, the government is not simply opening the doors completely. The local Securities and Futures Department recently issued a statement warning consumers to do due diligence before investing, and warned owners that some ICOs may be considered securities. AUSTRALIA (POSITIVELY VIEWED BY GOVT)

4 The Australian government has finally and conclusively provided a legislative end to the double taxation of Bitcoin and other cryptocurrencies. The bill will retroactively be enforced to July 1 of this year, as had been promised earlier in the year.

5 South KOREA (REGULATIONS APPROVED BY GOVT) As South Korea has passed China in total Bitcoin trading volume, a new cryptocurrency exchange is being launched that ll allow investors to trade 111 different altcoins. Upbit is an altcoin exchange created by Dunamu that will allow investors to trade different altcoins. Dunamu is the developer of a mobile app that provides soft copies of newspapers in South Korea and is owned by Kakaostock,South Korea s top mobile trading app. CHINA (ICOS BANNED BY GOVT) Chinese ICO Ban May End After Oct. 18 with Communist Congress Elections China holds sway in terms of the hashrate for Bitcoin mining, and besides the more well known pools such as Antpool and F2Pool, they may be under threat if the crackdown continues. The real issue is for those looking to capitalise on mining possibilities in China, as now that formerly lucrative business has a cloud hanging over it. RUSSIA (POSITIVELY VIEWED BY GOVT) Russia is in the midst of legitimizing cryptocurrencies. It is developing a legal framework that will govern transactions using digital currencies like Bitcoin, RT reports. Russian Finance Minister Anton Siluanov conveyed this at a recent financial forum in Moscow. He assured Russian users of Bitcoin and other cryptocurrencies that the government will not outlaw nor penalize people who use cryptocurrencies.

6 INDIA (POSITIVELY VIEWED BY GOVT) The Indian central bank Reserve Bank of India (RBI) has established a task force that will assess the possible granting of legal tender status to Bitcoin and other virtual currencies. The central bank is also eyeing to draft a cryptocurrency regulation in the near future. The central bank is also considering digitizing rupee, with an outright dislike for Bitcoin. This move by the RBI is expected to make India as one of the hottest countries for digital currencies in the near future. However, there is no clear plan of action yet on how the central bank will approach the regulation of the virtual currencies.