Crypto Current Affairs—Swiss Govt Developing Crypto Legal Framework + BTCC Boss Wants Bitcoin Regulated in China!
Today, in news from Europe, Switzerland government is rapidly working towards giving cryptocurrencies such as bitcoin and other cryptos a legal status. The government is moving towards a well thought out regulatory framework for companies in the fintech space. The new rules are expected to go into effect from August.
Swiss Federal Council have said that amongst the initiatives launched today, there is a “sandbox” regulation that will help create an accommodative environment for startups. Exemption from authorization is allowed for firms accepting fewer than 1 million Swiss Francs. The council has clarified that depositors of these firms would not be protected by Switzerland’s deposit protection rules.
Swiss rail service SBB, business that work with cryptos and exchange startups in the country could face the implications of the outcome of this new legal framework around Bitcoin and cryptocurrency. For example, SBB began selling bitcoin through its ticket kiosks last year.
In the past couple of years Switzerland has become an exciting new location for fintech startups. Some of the country’s municipal bodies have moved to integrated blockchaIn technology in their operations. This move comes as South Korea moves towards legalizing cryptocurrency and is working to implement a framework soon.
BTCC Boss Bobby Lee Wants Bitcoin Regulated in China!
CEO of popular Chinese cryptocurrency exchange BTCC, Bobby Lee has told CNBC that cryptocurrencies such as Bitcoins must be regulated else they get out of hand as millions more adopt these new technologies.
Without regulations the high volatility, low liquidity and major swings in price will continue. PBOC, the central bank of China has stepped up its efforts to ensure that exchanges don’t violate any rules and ensure all basic anti-money laundering systems are in place.
"I think it's taking the lawmakers and regulators some time to wrap their minds around it, and to come up with the appropriate rules and laws to govern companies, how we do business, to govern individuals and how people conduct business online."
Bitcoin is a new currency that is being traded across the world and has become hugely popular in China. Bobby Lee even made a prediction that he expects Bitcoin to be valued around $5000 to $11000 by 2020. He expects the banks in China to pay attention to the changing environment in fintech and focus on developing the legal framework to ensure smooth continuity.
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Everybody seems to be making wild forecast on the price of bitcoin. Some say bitcoin will be priced at $55,000 in 2020. Other argued it will be $11,000 in 2020. I wonder who's right. I just need a crystal ball...
You need a crystal ball. I need to ask the 8 ball....
So what did 8 ball tell you? :p @nibzter8
Just ask yourself: will this thing called Bitcoin suddenly go away to die or will it grow the next 5 years? I find that an easy question (for myself; opinions can differ).
I would love to see it grow in the next 5 years! I am sure it will! Things are looking good in the crypto world!
@dali.soh You never know what's going to happen in the crypto world. We will just have to wait and watch for the big good news!
We just need news like this for the price to go up.
This comment has received a 0.14 % upvote from @booster thanks to: @cryptopie.
Nice! @booster
Yes! These are good news. Hoping more countries to follow it up soon! :) @cryptopie
Thanks for following me I upgraded my upvote for you. aloha Al By the way great post as always
Not surprised Switzerland is somehow in the thick of things... the Swiss have always been "money handlers." Reminds me that Luxembourg (another money/tax haven) might be a place to keep an eye on, as far as the direction of cryptos-as-real-currency goes.
I don't know about the whole "regulations" thing... I suppose it just goes hand in hand that when something starts having "mass appeal," people step in and want to create "laws" around it. To me, that sort of defeats the whole idea of "decentralized," but maybe there are ways to make it all work side-by-side.
Agreed, regulation kills the idea of decentralisation. And that is precisely what the current financial establishment along with their rubber stamp governments intend to do.
that's one perspective for sure!
Regulation is probably aimed at people seeking and holdung funds from the general public. That's not a stupid thought.
Good point!
You said it! I think it's great that few governments are having the right approach to this! :) Swiss govt is great with handling money.
Switzerland always recognizing good earnings.:) They will legalize the cryptos and tax them after because they know fiat is doomed to be overtaken by the cryptocurrencies. They are already making some nice money from the ICOs and early stage crypto state financial recognition will earn them so much. What a country.
Yep, that is all "legalisation" means - TAX! One only has to look at the marijuana legalisation in the US. The state governments are raking in huge amounts of tax.
when it's "legal" and recognized by governments, many more will flock to bitcoin. Unlike fiat, it's not just a currency, its an asset. It's easily tradable. It's then that the price will really move. Watch
I'm watching, trading up and HODL.
Indeed! But other countries will follow suit when the Swiss do it.
Really interesting. But, one has to consider the fact that the instability in the crypto market limits and somewhat discourages well any governing force to make it a legal thing. Ofcourse, a whole new difference and stability might be achieved when it actually does get such a status!
The instability largely results due to low liquidity or volumes where large transactions can result in changing the price sharply. It will be a few years before this effect gets corrected by larger volumes and greater public participation in crypto.
Swiss know value of money..
Yes! They do! It's a very good sign! :)
The only things they can regulate are exchanges.. there is an underground economy growing.. good post!
True.
However there is an alternative to the centralised exchanges - Bisq.
https://bitsquare.io/
Bisq is an open-source desktop application that allows you to buy and sell bitcoins in exchange for national currencies, or alternative crypto currencies.
Don't know why I never heard of it.. is it similar to OpenBazaar?
As far as I remember and understand, OpenBazaar is more like decentralised Ebay/Etsy.
Whereas Bisq is a decentralised currency exchange. You use your own crypto wallets, bisq does not provide you with one, and therefore, you do not have these lock-down-out problems people have had with Steem and others recently. Your coin is your coin.
Good comments on this post from you @leoplaw
Yes more and more governments are recognizing cryptocurrencies and they would be crazy not to.
Yeah! It's a good sign for the crypto world! Cheers!
As long as Bitcoin remains Decentralized, it'll always keep volatility at the highest. But if governments make it centralized then the core importance of Bitcoin will be lost. So, it's better to make some flexible laws so that the volatility can be controlled to some extent while maintaining it's decentralised factor. I think Bitcoin will soon be legalised by India also, though it's not illegal still, then public would know about it and could use it in daily transactions.
Thanks @firepower for sharing the info.
This is why other coins have been created, so if governments move in on Bitcoin and "kill" it with centralisation, there will be plenty of others to step up and take its place.
But having the status of mother currency is a serious matter. If goverment, say for example, 'kill' bitcoin, then this will seriously affect the price of other coins as well. They can go in a steep downtrend. @leoplaw
That is assuming Bitcoin remains king of the cryptocurrencies. We cannot assume this will always be the case. That is why people diversify.
But for sometime, Bitcoin will remain the king of all the cryptocurrencies. Also it has the highest market capital as per now. Let's see what happens after this Segwit hype.
Agreed! Wait and see. HODL
Good point dude. I think this will happen soon!