Here are major cryptocurrency markets from Asia-Pacific, the Americas & Europe, into 3 groups based on the level of regulations:
- Hong Kong
- United Kingdom
- Australia – Digital currencies such as bitcoin are not regulated by Australian Securities and Investments Commission under the Corporations Act. This means that the business does not need to hold an AFS license to provide its wallet.
PLANNING TO REGULATE
- Korea – The Financial Services Commission of South Korean formed a task force last year to study possible regulatory frameworks for digital currencies. On 3 July 2017, Park Yong-jin, the representative of the ruling Democratic Party of Korea, released three revisions for the proposed legal framework.
- Europe – The EU drafted a law to identify Bitcoin users in March 2017.
- Singapore – Last year the Monetary Authority of Singapore (MAS) developed a regulatory framework for virtual currencies. On 21 June 2017, the MAS was considering AML guidelines for the bitcoin industry.
- China – Newly drafted regulations were said to be released in June, but then the PBOC announced on 21 June 2017 that there will not be any regulations in anytime soon.
Virtual currency is defined by the following criteria:
(i) property of value,
(ii) usable for payment to unspecified persons,
(iii) purchasable from and sellable to unspecified persons and
(iv) transferable by electronic processing devices
Virtual currency exchange services are defined by the following criteria:
(i)the sale, purchase, or exchange of virtual currencies.
(ii)intermediary, agency or delegation services in relation to the act of (i).
(iii)management of customers money or virtual currency in connection with the acts of (i) or (ii).
Virtual currency exchange services providers must meet certain registration requirements and register (applicants):
(i) must be a stock company
(ii)have a specific asset base
(iii)have an internal organization sufficient to pursue its business appropriately and accurately.