The director of Imperial college London’s center for Cryptocurrency research and Engineering, Cathy Mulligan, said that the lack of regulatory frameworks for Bitcoin and cryptocurrencies are holding back Bitcoin startups in several areas. India is a main example of Cathy Mulligan’s worry with inadequate and impractical regulatory frameworks. Startups, exchanges and trading systems in India are presently self-regulating themselves with strict anti-money laundering and know your customer regulations because of the lack of policies and readability within the country.
Despite the fact that Indian regulators confirmed with local guides that the legality of Bitcoin can be determined by May 20, for years, Indian Bitcoin exchanges and organizations were not capable of gain their ability. They goal the India’s general client base because of the authorities’s doubtful policies against Bitcoin and cryptocurrencies. Cathy Mulligan mentioned that startups in the United Kingdom are experiencing the equal problems as organizations in India. Startups are asking for readability on regulations for Bitcoin and Blockchain improvement but the country’s regulators are yet to offer clear regulatory frameworks for the Bitcoin and Blockchain industries to develop.
Cathy Mulligan said:
“We’ve got the situation in the united kingdom in which many startups are chasing the regulator to mention, how are we going to be regulated? Bitcoin within the United Kingdom is actually dealt with as non-public cash. If you tried to exchange Bitcoin for sterling you don’t get charged VAT on the value of the Bitcoin but it is charged on, for example, the fee alternatively. From the United Kingdom attitude, we haven’t seen big quantities of regulation.”
Not like other coutries including the United States and China, Bitcoin exchanges and buying and selling platforms aren’t required by the United Kingdom regulation to set up anti money laundering and know your customer systems. However, most people of exchanges do have strict Anti-money Laundering and know your consumer systems in region to keep away from comparable problems OKCoin and Huobi suffered in China. When the Chinese authorities rolled out its anti-money laundering and know your customer policies on Bitcoin exchanges, Huobi and OKCoin were required to halt their offerings until they comply with the newly drafted regulatory frameworks.
Cathy Mulligan stated:
“They aren’t being pressured to have anti-money laundering or know your customer regulation just yet. I suppose what is going to occur in Japan is, there could be an inflow in startups due to the fact the commercial enterprise surroundings is stable and you’ll realize how you’re going to control it.”
Moreover, for Bitcoin to gain mainstream adoption as the cryptocurrency, governments need to approve it as legal status and implement policies for the Business to develop. The Japanese and Philippine governments added legitimate regulatory frameworks on Bitcoin after recognizing it as legal tender and payment approach. Such readability within the legality of Bitcoin allowed the Bitcoin industries in Japan and Philippines to experience a rapid rate of increase.
Eitan Jankelewitz, an attorney at Blockchain and cryptocurrency-focused regulation company Sheridans, noted that Bitcoin hasn’t confirmed its complete capability as a digital cash system and currency. For Bitcoin to gain mainstream adoption, Eitan Jankelewitz reaffirmed that efficient regulatory frameworks need to be added.
Eitan Jankelewitz said:
“The brutal truth is that as a currency within the United Kingdom, and possibly globally, it hasn’t taken off. People commonly purchase it as they suppose it’s going to grow in price in the long term or they like the volatility and they decide they’re going to exchange it the equal manner you exchange gold. It’s another currency, but there’s no burning need for it.”