Title: An In-depth Look at Bitcoin Laws & Future Regulation
Headings: An In-depth Look at Bitcoin Laws & Future Regulation
An In-depth Look at Bitcoin Laws & Future Regulation
What are the concerns?
Current Approach to Regulation
USA
European Union
China
Tax
Future Approach

Content: The current rapporteur of the first Blockchain Resolution of the European Parliament has suggested that the benefits of a framework of rules in respect of the blockchain industry would allow for companies and customers operating in the sphere to act on a level playing field. She stated that without certainty about regulation, it is unlikely that the required scalability of the technology will be able to occur. She further proposed that ICOs, for example, should be defined within their own structure, rather than any attempt be made to make it fit into the current regulatory structures of securities or commodities. This approach is in line with the view of the Bitcoin Foundation themselves, who have stated that any premature regulation of Bitcoin “might put it into a box it might not fit into later on.” China
Although legal for individuals in China, there has been a clampdown on the trading of Bitcoin in 2017, with multiple exchanges having to delay or pause Bitcoin withdrawal services. This clampdown arrived in tandem with an increase in the Chinese media noting the dangers of cryptocurrency as a tool for criminal activities, which suggests that this has been a de facto regulation of Bitcoin. In addition, officials in the People’s Bank of China have noted that Bitcoin exchanges operating in China needed strict supervision and a form of licensing. Tax
The other area in which authorities are increasingly looking at how regulation will be implemented in respect of Bitcoin is in the area of tax. Due to the semi-anonymity of Bitcoin, it can potentially be used to hide assets and assist in reducing taxation. There is no uniform international approach on how profits made from trading in Bitcoin or other cryptocurrencies should be taxed.