Malta, a small island nation became the first country in the world to authorize a regulatory framework for initial coin offerings and cryptocurrencies. India has also been seen preparing national legislation for cryptocurrencies. Therefore, 2019 could be a year in which crypto-regulation will become more formal, widespread and international. It will unfold many new possibilities in the crypto market as it will become more legitimate.
The two strong regulations, i.e., anti-money laundering (AML) and combating the finance of terrorism (CFT) will be rolled out across the globe, reaching most of the nations. The worldwide push of AML/CFT in the crypto market will be driven by Financial Action Task Force, which is G-7 founded organization tasked to formulate policies relevant to money laundering. The Task force’s President, Marshall Billingslea announced the issuance of additional standards for cryptocurrencies by the June 2019. This may have potential repercussions on the privacy coins of users, but this will be a huge positive step in the crypto market. The implementation of both the regulatory standards with Financial Action Taskforce will widen large adoption of distributed cryptocurrencies.
Perhaps excluding privacy coins like Monero and Verge from trading on exchanges, the new regulatory framework is yet to be formulated.
New laws were to be imposed by the European Parliament committee on initial coin offerings (ICOs) in August 2018, so as to protect consumers against frauds taking place in the crypto market. Though such a move will be beneficial for the users, as per economists, ICO legislation can restrict new entrants to launch token offerings.
No International Tax on Cryptocurrency
It was recently reported that the G20 group of countries agreed to work towards the authorization of the “international cryptocurrency tax,” but it is still not certain. Some folks in the market are still prepared for increased efforts towards the crypto tax. Brent Jaciow said the market could still expect tax regulation at the national level. Hence, governments across the globe could take serious actions at cryptocurrency markets in 2019. It may include two core areas within the crypto markets; taxation and regulation on crypto offerings.
After Effects on Industry
Since the governments across the globe probably fix crypto’s worst aspects, it is quite significant that the market would experience a tough ride in the year 2019 and beyond. The focus would be exclusively on money laundering, terrorist funding, etc. So that they can get a deep understanding of the source and flow of funds in the crypto market. These regulations and taxation might be restrictive which is lacking as of now. Hopefully, the general public will be willing to adopt and use cryptocurrency, after seeing that cryptocurrencies have become more safely policed.