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The initial coin offer on blockchain platforms has painted the world red for tech startups around the world. A decentralized network that can allocate tokens to users who support an idea for money both revolutionizes and rewards.
Profitable Bitcoin became an “asset” in 2017 for the first investors to make a lot of money. Investors and cryptocurrency exchanges around the world have taken advantage of the huge profits that have led to the rise of many online exchanges. Other cryptocurrencies like Ethereum, Ripple and other ICOs have promised better results. (Ethereum increased more than 88 times in 2017!)
Although ICOs have raised millions of dollars in the hands of startups in just a few days, ruling governments have initially chosen to focus on the fastest fintech development, which has the potential to raise millions of dollars in a very short period of time.
All countries of the world are thinking about regulating cryptocurrencies
But regulators have been cautious, as the technology and its key implications have gained popularity as ICOs have begun to discuss billions of dollars in funding – based on proposed plans written in white papers.
It was in late 2017 that all the world’s governments took the opportunity to intervene. Although China has completely banned cryptocurrencies, the SEC (Securities and Exchange Commission) in the United States has highlighted the risks it poses to sensitive investors and has suggested that they be treated as securities.
SEC Chairman Jay Clayton’s latest warning statement in December reminded investors,
“Please note that these markets cover national borders and that significant trading can take place on systems and platforms outside the United States. The funds you invest can travel abroad quickly without your knowledge. As a result, risks, including market risk, may increase. regulators will not be able to effectively prosecute bad actors or withdraw funds. “
This was followed by concerns in India, where Finance Minister Arun Jaitley said in February that India did not recognize cryptocurrencies.
A circular sent by the Central Bank of India to other banks on April 6, 2018, required banks to cut ties with companies and exchanges engaged in cryptocurrency trading or operations.
In Britain, the FCA (Financial Conduct Authority) announced in March that it had set up a cryptocurrency working group and would seek help from the Bank of England to regulate the cryptocurrency sector.
Different laws, tax structures between countries
Cryptocurrencies are mainly coins or tokens sold on a cryptographic network and can be traded globally. Although cryptocurrencies have more or less the same value around the world, countries with different laws and regulations may provide different returns for investors who may be citizens of different countries.
Different laws for investors from different countries would be a tedious and difficult exercise in calculating income.
This will involve investing time, resources and strategies that will unnecessarily prolong the process.
Solution
Instead of many countries drafting different laws for global cryptocurrencies, there should be a constitution of a single global regulatory body with laws that transcend borders. Such a move would play an important role in boosting legitimate cryptocurrency trading around the world.
Organizations with global goals, such as the United Nations (UN), the World Trade Organization (WTO), the World Economic Forum (WEF), and the International Trade Organization (ITO), are already playing an important role in uniting the world on various fronts.
Cryptocurrencies are formed around the world with the basic idea of money transfers. They have more or less similar value between exchanges, except for minor arbitrage.
The global regulator that regulates cryptocurrencies around the world is a matter of time and can set global rules to regulate the latest way of financing ideas. Currently, each country is trying to regulate virtual currencies through legislation, and the process of their development is underway.
If economic superpowers can reach a consensus with other countries by establishing a regulatory body with laws that recognize no national borders, it will be one of the biggest advances in crypto-friendly world design and increase the use of one of the most transparent fintechs. the system is always a blockchain.
A universal regulation consisting of subsections related to cryptocurrency trading, revenues, taxes, fines, KYC procedures, exchange laws, and penalties for illegal breaches can give us the following. advantages.
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This could make it much easier for investors around the world to calculate profits, as there will be no difference in net profits due to single tax structures.
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All countries of the world can agree to distribute a part of the profit as a tax. Thus, the share of countries in the collected taxes would be the same all over the world.
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It is possible to save time on the establishment of numerous committees, the preparation of bills, followed by discussions in the legislative arena (such as the Parliament in India and the Senate in the United States).
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It is not necessary to go through the heavy tax laws of each country. Especially those engaged in multinational trade.
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Even companies that offer tokens or ICOs will comply with this “international law.” Therefore, calculating after-tax income would be a cakewalk for companies
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The global structure will require more companies to come up with better ideas, thereby increasing employment opportunities around the world.
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An international supervisory authority or a regulator for global currencies that has the authority to blacklist a non-compliant ICO proposal may help.
When it comes to a law that will govern cryptocurrencies around the world, this is not all the advantages. There are certain disadvantages as well as.
It can take a long time for the world’s financial leaders to come together and draft a law. Discussions and consensus can be difficult
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Countries or economies that provide tax-free structures cannot agree to adopt a law that provides for a universal tax policy.
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Interference by a global regulator or regulator to monitor ICO-related regulatory developments may not go well with some countries.
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Universal law can result in the division of the world into factions. Countries that do not support cryptocurrencies, such as China, may not be part of this.
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The law can be the idea of economically powerful states, and they can design it in their own interests.
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Unlike decentralized cryptocurrencies in nature, this law would be a centralized law with a global regulatory body.
The result
The world is in a better place. Either to create a peaceful world after the Second World War, or to come together for better trade laws and agreements.
The International Trade Organization (ITO), the World Trade Organization and the World Economic Forum have the best brains that define the global economy.
Together, they can be part of an organization that will determine the world’s economic well-being. They could be part of a regulatory body that will help develop global cryptocurrency norms and better serve as a guide and beacon for thousands of ICOs around the world. At first, this may take time, but it will make things easier for future generations.