Blockchain regulations are not simple. There are figurative miles of red tape to navigate between regional requirements, national guidelines, and international recommendations. To complicate matters, laws are changing all the time, making the process an ever-evolving path. But along this road to adoption, some nations are looking ahead of the current difficulties and providing a fertile development atmosphere. Below we look at which countries are most favorable to launch a blockchain company in terms of rules, laws, and overall landscape.
The Land of the Rising Sun, and the possible origin country of the Bitcoin creator, Satoshi Nakamoto, is very progressive in its cryptos stance. Not only does Japan recognize Bitcoin as an actual currency, but Coinbase is hiring locals up in anticipation of its new local office. Japan’s financial regulator, the Financial Services Agency (FSA), recently approved Coinbase as a member, signaling the continued support for digital assets.
In May of this year, Japan revised its current crypto laws. Now all “virtual currencies” must be referred to as “crypto assets.” These digital assets must be managed separately from traditional currencies. Both cold and hot wallets are acceptable as custodial tools and additional funds back all deposits. Learning from the Mt. Gox disaster, users will be compensated for their deposit amount if an exchange goes bankrupt.
Blockchain Projects From Japan
The US has a long and storied history with assets on the blockchain. Between the Silk Road, the birth of Litecoin, and Paypal’s recent crypto offerings, there is never a dull moment. As a result of such a large landmass and state jurisdictions, the regulatory landscape is less than concise. While Caitlin Long’s home state of Wyoming is dispersing crypto bank charters, states like New York continue to be weighed down by the Bitlicense. Despite being over five years old, PayPal is the first company to receive bitlicenses in the state.
Aside from regulatory difficulties, the US is still a hotbed of startups and blockchain ideas. The Covid-19 situation appears to be still exhibiting some pressure on venture capitalists, although the markets are slowly adopting a more “risk-on” attitude.
Blockchain Projects From USA
Perhaps most well known for its “on-off” relationship with cryptocurrencies, China’s recent attitude has become much warmer of late. This year the Chinese government announced a national blockchain initiative, surprising many in the blockchain world. While China is now encouraging new companies and projects, it is also pushing ahead with its Central Bank Digital Currency (CBDC). This new national currency has been in development since 2014 and may be the first of its kind upon the eventual launch. Not to be outdone, nations worldwide are experimenting with their own CBDC’s.
Blockchain Projects From China
Binance (at one point)
Perhaps the “dark horse” in the crypto-sphere, Germany, has taken a surprisingly progressive attitude towards blockchain. Last month the German energy innovation agency, DENA, chose Polkadot to create a decentralized identity layer that will be used to monitor renewable energy distribution. This national monitoring service will help scientists determine the flow and distribution of its renewable services.
In the more traditional financial sector, the German Finance Minister has taken steps in the last few months to bring digital assets/securities more in line with conventional financial instruments. By creating decentralized securities, exempting certain crypto transactions from value-added taxes (VAT), and supporting crypto mining, Germany creates an inviting environment for blockchain companies.
The friendly regulatory attitude is one reason why projects like TIXL choose its home in Germany. The project uses a new blockchain to power DeFi but is flexible enough to comply with financial guidelines across the EU. Perhaps it is the long history of engineering, attention to detail, or the acceptance of the eventuality of a blockchain future that is making Germany an incubator for blockchain innovation.
Other Germany-based blockchains are DIA and Lition, focusing on decentralized oracles and private banking solutions, respectively. Both projects are GDPR (General Data Protection Regulation) compliant and adhere to EU regulations. As these larger decentralized banking protocols plan to implement nationwide in the future, they are paying extra attention to any upcoming laws and guidelines.
Blockchain Projects From Germany
The above examples are simply a brief selection of the countries moving towards a more decentralized future. South Korea, India, Panama, and Seychelles all have become more tolerant of blockchain as they attract talented international teams. Even though one cannot tell the future, the signs of progress point to countries that will encourage change and not stay beholden to the past.
The Daily Chain
*Disclaimer – This content is made possible with TIXL’s support. The above article does not represent financial, investment, or trading advice, and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.