As the desire for universal digital currency has arisen, blockchain is needed in every country. With this comes the need to regulate the currency. The methods for doing so vary from country to country.
The Blockchain is strictly regulated in the European Union. In May of 2018 the General Data Protection Regulation went into effect. The purpose of this regulation is to ensure citizens of the country that they are permitted to keep their personal data private. Despite the perceived controversy of this regulation, blockchain has to ensure each user can claim rightful ownership of their own data. The controversy stems from blockchain companies feeling like this regulation is a direct contradiction to their purpose.
Countries in East Asia are also very strict about such regulations. Though in the past no restrictions were placed on blockchain companies, that has now changed. In light of the extreme popularity of digital currencies, East Asia has tightened regulations on its use.
Both South Korea and China have stopped allowing initial coin offerings, which were allowed previously. The People’s Bank of China made the decision to stop the allowance of ICOs. South Korea then banned its use as well. However, the government of South Korea supports the use of blockchain technology. Despite this support, it hasn’t made a clear decision about cryptocurrency use and the regulations that should be applied to them. As a result, the future of cryptocurrency in South Korea is shaky at best.
In Japan, cryptocurrency use is embraced, with regulations placed on its use. Bitcoin was recognized as an accepted currency in Japan long before it was in any other country. The country promptly granted businesses the necessary exchange licenses to use cryptocurrency. Yet, regulatory bodies throughout the country have not recognized any digital currency other than Bitcoin. This may or may not change in the future.
The United States has taken a much different approach. Many cryptocurrency companies are avoiding the U.S. because of tighter regulations than anywhere else. Topics related to security are the biggest concern in the cryptocurrency issue. Digital currencies are seen as assets that the government has a right to monitor. This is why the U.S. is so far behind other countries on this matter.
It remains to be seen how the world’s other countries are responding to cryptocurrency.