The EU announces a new regulatory regime of the criptomonedas, as part of the actions of control of the ecosystem crypto. In this post we will explain the why of these regulations.
The States are to be able to manage their economic actions, in conjunction with its political functioning. And the concept on which the criptomonedas are based out of the functioning of the countries.
The European Union (EU) is a block of countries that work under two rationales. The interconnection between the member countries and the cooperativity between the States. Multiple treaties and agreements are the foundation for these ideals. Since the treaty of Schegen, an agreement which abolishes border regulations and allow the free passage of eu citizens, to free tariffs.
Since, this allows the legal regulations and economic can be applied to a whole block of countries. Thus, ensuring an effective regional decision making in the States.
However, the criptomonedas are part of a new technological revolution. Advances that you leave behind with great advantage to the known concepts, such as those of traditional international law. Thus creating a cumbersome process for its regulation. Thus, the EU creates a regulatory regime in this situation with the criptomonedas.
Why regular criptomonedas?
With the emergence of the criptomonedas, the governments have not been able to avoid seeing the criptos as this strange specimen that exceeds its rational understanding.
Thus, they reject what they do not understand, either by anxiety or fear of not knowing what are the future implications that the crypto world can cause.
The concept of decentralization and the famed technology Blockchain, though, has meant a huge advance for users of the criptomonedas, to the representatives at the global level are an abomination. Although, these technological advances have been a great step for humanity. Given that you have permitted to that party without scruples or moral of human beings to take advantage of.
These individuals are in charge of dismissing a technological achievement as amazing as it is to the crypto world. So, something that was thought of as a revolutionary idea that promises to change the economic systems and trade, as we know it today, has been dismissed by a minority.
For its attribute as a currency almost impossible to trace, encrypted by the users themselves via the Blockchain, and does not need to be identified at all, the criptomonedas have provided the conditions for illegal business and illegal.
For this reason, the regulatory issues of the criptomonedas have to see, in their great majority, with money laundering, creation of companies malversas, misappropriation of funds, selling weapons on the black market and terrorist financing.
The EU creates a regulatory Regime to the criptomonedas
The European Union began to take some initial steps to approve the first “Hard Regulations” of the digital currencies. It creates a regulatory regime based on the search for to regulate every crypto asset and its operation. In this way, to allow all of the economic sector will be in harmony with this evolution of the finance digital.
The vision of the European Union is to become the first region that managed to order, low to the statute of the traditional right, everything related to crypto ecosystem. Thus, The EU needs to this régime of regulation.
“It is an opportunity for Europe to become a creator of global standards, with european companies that are leading emerging technologies for finance digital“. Said Valdis Dombrovskisminister of economy of the bloc during a speech at Digital Finance Outreach to 2020 at the beginning of this week
However, the EU is still far from achieving this goal, despite the fact that it creates a regulatory regime.
Studies of the EU show that the block is in arrears in regard to the regulation of the criptomonedas in comparison to other countries not belonging to the European Union. For example, Switzerland.
Switzerland is known as the “Crypto Nation”. Therefore, it has always provided favourable conditions for all the projects related to the crypto world. This is a name well deserved, because it is a place where you can start a company Blockchain, and finance it with a Initial Coin Offering (ICO).
In addition, the professional regulations and financial guidelines are so well established, that even a novice in the crypto could undertake in this country.
What is the challenge of a regulation correct?
At the global level, the rules that have been established are different in each region. Vary considerably from one country to another.
From the simple prohibition in some jurisdictions, up to a tax system unfavourable (personal and business). Or the increase of compliance requirements for exchanges to other digital currencies, or Fiat money.
Because, if you well, covering all of its concept and operation. The existing regulatory framework creates more problems than it solves. For example, the classification of some Tokens as values. Without taking into account the fundamental differences that may exist between the criptomonedas and values.
But in general, the legal challenges faced by the crypto companies, emanates from the fact that the technology of the Blockchain is still very young, but it promises to impact quickly in the world.
Making new laws is a slow process and measured. And the need to regulate a new area that is causing impact in the society, it does not happen so easily. Especially if the technology is disruptive, with the potential to change significant aspects of our lives.
What does the future hold for international law?
The lack of understanding of the true nature of the technology of Blockchain and the lack of will of understanding between the regulators and the legislators are also a major obstacle.
Just have to wait. See as iran to evolve, these actions of the States in reference to the world of crypto, because both dimensions have a lot to understand each other.
To understand the evolution of this dispute, carries thousands of questions, but what is certain is that the impact of the digital coins in the world goes beyond what we ever imagined.
Do you agree with that will regulate the crypto-ecosystem?