Governments Move to Limit Cryptocurrency Industry

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Governments Move to Limit Cryptocurrency Industry

Over the past week, several governments have sought to further regulate the blockchain industries. Due to the continuous scams, the authorities seek to limit the cryptocurrency industry with new legislation.

Japan’s Financial Services Agency (FSA) might consider approving leverage caps on crypto margin trading. This would limit speculative investment. On the privacy side, the government of Spain passed a bill that requires all token/coin owners to disclose their crypto holdings. In both cases, the authorities seek to bring the crypto markets under their watchful eye.

New Policies Limit Cryptocurrency Industry

The Japanese regulator, FSA, is researching the margin trading on the crypto market. Due to how large the industry is in Japan (3.5 million active traders), the impact of speculative trading has consequences for the entire blockchain market. Thus, the authorities are considering the leverage rate cap. The move would limit the cryptocurrency industry in terms of potential gains and losses from trading. It would also limit investment choices. The lowest proposed leverage would be 2:1.

On the other side of the planet, the Spanish Ministry of Finance passed a new crypto tax bill. The law would allow regulators to request crypto holdings from investors. According to the analysis, about 850 million euros in tax revenue are at stake. The enforcement teams would consist of 200 tax officials. They would all be dedicated to tracking down the ledger. All in all, this move would limit the cryptocurrency industry in terms of privacy even more than the AML/KYC policies.

An Ongoing Process

These moves are all part of the global strategy to control crypto assets. Most officials are skeptical when it comes to decentralization of the digital markets. A big reason for that is a large number of scams. Apart from the implications for tax and trade, regulative bodies seek to limit the cryptocurrency industry in terms of privacy as well.

Related: https://coinedtimes.com/us-government-seeks-further-crypto-regulation/

The trend seems to be moving to other countries around the globe as well. There was the U.S. Securities and Exchange Commission’s decision to refuse nine bitcoin ETFs, earlier this year. After that, another proposal made its way to the officials. The Senate also held a hearing with the famous anti-crypto economist, Nouriel Roubini.

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