Thoughts For The Upcoming Elections
The world of Crypto is in it's infancy with many countries unsure on how to treat it and regulate it. What is it as this is digital money that can be turned into real money. Some of the countries can see the benefits and opt for taxation hoping to increase their tax funding. Some just think outright banning it will stop the wave of what is to come.
Nigeria
Nigeria banned crypto trading this week cutting off financial life lines for many. The Central Bank of Nigeria ordered Nigerian banks to close cryptocurrency accounts, Binance has suspended deposits in Nigeria, following Central Bank Directive and advised traders to withdraw Naira right away. Many Nigerians are angry and desperate but they need to think bigger than that right now.
No matter what platform you looked at, Nigerian news was everywhere, even on Hive, as we have a large community here. Many are living off the blockchain, covering their living expenses, tuition fees with what they earn blogging and I bet many were hoping to get some funds for rainy days as well. All that is gone now, funds must be withdrawn from exchanges in local currency, that most likely losing purchasing power day by day.
It's obvious that the current ruling party has no idea about what to do. Banning crypto was the worst they can do. If they wanted to stop people getting free money, they should have introduced taxation and make sure people obey the rules by paying taxes. It would have been beneficial for both the Government and the people. Instead they chose to ban crypto and curtail both the people and the budget from some funds.
Estonia
Estonia had a different approach, not banning, but trying to regulate crypto.
Estonia’s finance ministry is reportedly looking to enact stricter crypto licensing regulations. This comes after the authorities revoked the licenses of about two-thirds of the cryptocurrency businesses operating in the country back in 2020.
According to ERR News, the Estonian Ministry of Finance issued draft legislation back in January to tighten the noose on the country’s crypto industry. As part of the proposed rule changes, the Finantsinspektsioon — Estonia’s Financial Supervisory Authority — will oversee the regulation of cryptocurrency businesses instead of the Financial Intelligence Unit. source
Crypto operators will have to pay a licensing fee and all the existing license holders have to reapply for an new permit. They are tightening the belt to be able to control these companies. They say it's because of combating money laundering. Looks like half of the companies won't get licensed if the new regulations go live but we'll see.
South Africa
Something similar is prepared in South Africa.
A big concern to South African authorities is that the success of Bitcoin has attracted many scammers as it is an unregulated field. To address this concern, the Financial Sector Conduct Authority (FSCA) published a draft declaration of crypto assets as a financial product under the Financial Advisory and Intermediary Services Act (FAIS). What this means, in simple terms, is that cryptocurrency exchanges, advisors, and brokers will have to become registered financial services providers (FSPs).
Photo by Eftakher Alam on Unsplash
What's Next?
It's clear that cryptocurrency exchanges, advisors, and brokers will be closely monitored from now on. Probably we're going to see more regulations around the world and possibly more bans as India has a love hate relationship with crypto and it's not sure what's going to happen. Things could go either way. I truly hope they won't ban crypto in India as it would kill a lot of people.
As about politicians and political parties, they are shaping the future with their relationship and attitude towards crypto. Those pro crypto most likely will have a brighter future as at the next election crypto will be a factor in deciding who to vote. Those against crypto are going to lose ground.
Don't forget to check your witness list, make sure you're voting Leofinance as well.
If you don't know how to vote, here's a tutorial for you
Search privately, receive better results and get rewarded with the Presearch decentralized search engine, powered by blockchain technology.
Posted Using LeoFinance Beta
