Money 2020 to Chart the Future Path for Payments Industry
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The road to creating a john beccia bitcoin framework for digital currency has taken several twists and turns over the past year. Despite some progress, questions and challenges remain. Along with finalizing those proposals, coming attractions for include completion of the Fourth Money Laundering Directive in the European Union EUa potential ban of bitcoin in Russia [3] and a key case pending on the value-added tax VAT treatment of digital currency in the EU [4].
Regulators, such as the Securities and Exchange Commission [5]Commodities Futures Trading Commission [6]Consumer John beccia bitcoin Protection Bureau and the Financial Conduct Authority, have indicated that additional regulation may be needed to protect consumers and the financial john beccia bitcoin. On top of this, law enforcement will undoubtedly continue to target illicit activity relating to digital currency.
Regulators should not lose sight of the intrinsic value of digital currency, which is its decentralized nature, lack of intermediaries and cryptographic proofs that make the system inherently trustworthy. Regulators should not only focus on the risks, but should also take time to understand the benefits of digital currency and the john beccia bitcoin impact of regulation.
As this technology evolves, regulation should be measured and risk-based. It should offer flexible, principles-based guidelines versus overly prescriptive rules that would place burdens on firms and eliminate the benefits of john beccia bitcoin technology. Regulations should be established in a manner that maintains a level playing field with other payment service providers.
Regulators should resist the temptation to offer duplicative or unnecessary requirements. There are many business models in the digital currency ecosystem. Each lends itself to different degrees of risk and should be regulated accordingly.
Firms operating as exchanges in the EU should similarly be regulated under relevant directives and should be covered by applicable money laundering regulations, such as the proposed directive. However, with the advent of blockchain technology, this is a good time for government officials to take a wider view of regulation and how they can leverage technology to support their mission.
In particular, it would be helpful to develop open standards for digital identity that would protect user privacy while limiting bad actor access to digital currency platforms and the existing consumer finance ecosystem.
In areas where current rules do not fit with new technology, regulators should be receptive to industry ideas on ways to comply with the spirit versus the john beccia bitcoin of the law.
Many emergent risk management protocols are significantly more effective than legacy solutions. Regulators should be receptive to industry best practices that address risks in an efficient manner. There are still significant barriers for digital currency firms looking to bring these services to mainstream users, including the lack of banking and audit john beccia bitcoin relationships for digital currency businesses. Regulatory clarity is needed to bolster these partnerships and enhance consumer adoption of digital currency.
In the US, a standard licensing and oversight approach is needed at the state level. Key states, such as New York and California, should be working closely with the CSBS as john beccia bitcoin finalize regulatory principles to ensure the approach is reasonable and consistent. A diverse regulatory regime in multiple states would create unnecessary complications and barriers to entry for smaller firms.
Due to the decentralized nature of digital currency, it makes sense for regulations to be developed on a global basis to the extent possible. Regulators have been successful in the past by taking a coordinated approach on anti-money laundering regulations, such as through Financial Action Task John beccia bitcoin recommendations. Further clarification is needed regarding the tax treatment of digital currency in the US and EU. The IRS guidelines are not appropriate for digital currency transactions and are too onerous for consumers from a reporting standpoint.
Similarly, john beccia bitcoin is important to have clear and consistent guidance across the EU as a VAT regime could significantly hamper digital currency adoption. These transactions should be exempt from VAT. Hopefully, the EU Court of Justice will reach a similar conclusion in the pending case on this matter. Circle regulation [7] [8]. The Logicoins resort project, being carried out in conjunction with ClickJett. The Logicoins Network brings access to crypto and digital currencies john beccia bitcoin places where exchanges regularly take place and users.
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