Cryptobanking and Laws Around the World

by Ankur Gupta · August 28, 2018

Cryptocurrency has gained the attention of traders and investors in the world market for the past few years. Many individuals have started investing in cryptocurrencies, hoping that their value will increase in due time. With the vast variation of cryptocurrencies around the world, cryptocurrency has slowly gained the reputation of becoming an alternative currency, which most investors are aiming to obtain as they possess a higher value depending on which cryptocurrency they are investing in.

From Bitcoin to Ethereum, there are different kinds of cryptocurrencies in some parts of the world and all of them vary in value. Bitcoin for example, holds the highest value of $6,036.03 per one Bitcoin, while its competitor Ethereum stands at $272.26. This is the main reason why most investors are investing on Bitcoin. However, several regulatory boards around the world have warned investors about the possible risks of investing in cryptocurrency, as cryptocurrencies are obtained virtually, which means it has a high possibility of getting traced, tampered and worse: hacked, which leads to the investor losing their money.

Security

Security is one of the main possible threats of cryptocurrency, per a recent incident in June where investors got caught up in different online frauds related to cryptocurrency, and hackers also posed as a major threat to investors who were investing in cryptocurrency. This is the main reason why CFTC or the Commodities Futures Trading Commission mentioned in a statement that investors must be vigilant and careful when it comes in investing with digital currencies.

Banks as well as different countries around the world have issued a statement telling everyone that they are imposing different laws and regulation when it comes to cryptocurrency. This is to protect their clients and customers when transferring, withdrawing and even converting their cryptocurrencies from their bank accounts.

The idea is to prevent fraud and enhance the security of each investor’s accounts when it comes to investing in Cryptocurrencies, this provides a worry-free transaction and maximizes the safety of their investment.

Laws and Regulations around the World

With the recent events that occurred within the past few months that indicated the high risks of investing in cryptocurrency, countries from around the world have issued their laws and regulations when it comes to virtual currencies, each regulations and laws differ from one country to another, and in some cases particularly in the United States and the European Union, laws and regulations differ from one state to another.

China, one of the world’s largest economies has issued a blanket ban on all cryptocurrencies in September 2017 for both domestic and trading exchanges, which made investors and traders furious as most of them are also investing in virtual currencies. However, the country is now reported to have been re-considering their cryptocurrency regulation and is expected to lift the ban later this year or next year.

In accordance to this, the European Union has claimed that they are intending to introduce laws and measures to regulate the crypto market, though they haven’t indicated when this regulation will be stated. As of now, European Union have legitimized Bitcoin, this is as the EU jurisdiction require the cryptocurrency to go through the same KYC process just like how traditional banks.

The European Union has also banned some of their states from creating their own cryptocurrency since 2017; this is followed by several EU states imposing a tighter supervision on crypto derivatives.

On the other hand, investors and traders are now eyeing on the United States for their laws and regulations regarding cryptocurrencies as most virtual currencies values in greenback or the U.S. dollar. New regulations from the country will affect most of the cryptocurrencies, particulary Bitcoin. Several regulatory departments in the country such as the CFTC, the SEC, the FEDs as well as IRS have stated their different opinions and regulation proposals which the country will examine.

CryptoBank

With all of the different laws and regulations for cryptocurrency comes the introduction of CryptoV8, which offers a decentralized global payment system that is based on its advance blockchain technology which includes different currencies such as CryptoEuro, CryptoDollar, CryptoYuan as well as CryptoRuble.

CryptoV8 provides a faster and safer cryptocurrency transaction without the risks of instability on single platform. Giving each investor the security and faster transaction they deserve.