World Economies Look to Regulate ICO’s After Chinese Shutdown

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Leading economies worldwide are taking a new look into how cryptocurrencies should be regulated after the news that China will be banning Initial Coin Offerings (ICO’s) came out earlier this week.

As expected, many problems have occurred recently with figuring out such a complex task of controlling the growth of cryptocurrencies without completely suffocating the industry.

In Japan, new laws were passed in April that made cryptocurrencies a payment method similar to the dollar or the yen as well as mandatory registrations with the Japanese Financial Services Agency (FSA). These mandatory registrations take effect by the end of September.

Japan’s Financial Services Agency (FSA) is looking at how to handle ICO’s to reduce money laundering and fraud. This includes establishing specific accounting rules on how to treat cryptocurrency transactions. (fsa.go.jp image)

Part of the registration requirements include sustaining a capital stock of ¥10,000,000, about $90,000 and keeping liabilities from exceeding assets.

Meanwhile, the Monetary Authority of Singapore, whose government has been extremely accommodating towards cryptocurrencies in the past, said in a memo that it aims to regulate the transactions of cryptocurrencies if it poses a security threat, such as money laundering or for funding terrorism.

“ICOs are vulnerable to money laundering and terrorist financing (ML/TF) risks due to the anonymous nature of the transactions, and the ease with which large sums of monies may be raised in a short period of time.”

The United States Securities and Exchange Commission (SEC) told consumers of cryptocurrencies to be cautious and provided buyers with ways of detecting investment conspiracies that could be used for malicious reasons.

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