Regulations - A Catch-22 Situation for Bitcoin Startups
Regulations or lack thereof can be tricky for businesses, especially if you are involved in Bitcoin startups or cryptocurrency related business. Bitcoin and other cryptocurrencies are relatively new introductions to the economy and there isn't enough clarity amongst people regarding its inner working and implications. The companies that are into Bitcoin based businesses are doing so based on their belief and the emerging trends which indicate that Bitcoin might just be the digital currency that future will embrace and appreciate. Some of them have been really lucky so far, some not so much....
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The divided regulatory policies and frameworks on digital currencies, including Bitcoin, in the United States have created an impractical ecosystem for startups to operate in. The country’s state-by-state regulations for money transmission licensing has led to an unclear regulatory framework for digital currencies, with some states, including North Carolina, New Jersey and California, establishing regulations in favor of digital currency startups and businesses, while others, such as New York and Connecticut, require startups to obtain expensive licenses to operate as legal entities. This....
The South Korean Financial Services Commission (FSC) has established a task force to design regulatory framework for Bitcoin companies and users. The government states that regulations will be introduced by the first quarter of 2017. Several meetings have taken place since the FSC’s initial announcement of a potential introduction of Bitcoin regulation. South Korean media reported that the task force agreed to design its regulatory frameworks for Bitcoin companies based on the regulations in Japan and the U.S. While regulations greatly vary between states in the U.S., Japan has a unified....
The Bitcoin businesses in Hong Kong are finding it difficult to navigate through complex regulations, damaging the region's cryptocurrency ecosystem. Hong Kong is one of the Asia’s finest fintech destinations. But the same can’t be said for the Bitcoin market anymore. According to a recent article in one of the leading Chinese dailies, Bitcoin businesses are slowly dying in the region. Once considered a prolific market for cryptocurrencies, the sector has since then been stifled by strict regulations and red tape. Entrepreneurs in the digital currency industry who once flocked to Hong Kong....
This week the crypto market went nuts when Elon Musk revealed his company began accepting Bitcoin as a form of payment for any Tesla model. While this caused prices to initially soar, reading the fine print reveals a bit of a catch-22 situation for anyone who uses the cryptocurrency to pay. Here’s what you need to be aware of if you’re considering spending BTC on a Model S, Y, or 3. Tesla Begins Accepting Bitcoin […]
Switzerland takes another large step in the direction of a crypto paradise with the introduction of a motion to redefine client deposits, exempting Bitcoin businesses from the stringent financial regulations banks face. Members of the Swiss parliament moved to lessen regulations on Bitcoin- and blockchain-based startups. Federal Assembly member Franz Grüter, along with 23 of his colleagues across several parties, filed the motion last Wednesday (though a vote would likely not take place until the fall). The motion aims to clarify the definition of financial institutions. Currently,....