Belarus, Estonia, Kazakhstan, Russia, and Ukraine are countries that have adopted different stances towards virtual currencies. Some of them have decided to open the market for investors while others have decided to regulate and control them.
This Eastern European country is known as “Europe’s last dictatorship” is opening its borders in order to let cryptocurrency investments flourish. In the near future, Belarusian President Alexander Lukashenko could sign a decree to legalize cryptocurrencies. The intention is to allow ICOs, cryptocurrencies, and miners to freely operate in the country.
This country, between Poland and Russia, has adopted an open policy regarding cryptocurrencies and the fintech sector. Belarus has inaugurated in 2005 a special economic zone named Belarus High Technologies Park (HTP). Companies registered in the HTP, enjoy different advantages like tax exemptions and different accommodations.
According to the Belarusian newspaper Tut By, The decree will introduce cryptocurrencies into civil society. The legal framework that will start to govern will allow different businesses like crypto exchanges and ICOs to properly provide services in the country and abroad.
Another country that tries to be flexible to the cryptocurrency market is Ukraine. It has Russia and Belarus as neighbours and Kazakhstan are near it. These three countries are taking different decisions that influence the cryptocurrency market in the region. Ukraine has to take the best possible decisions if it wants to survive in such a competitive environment.
Ukraine, as well as Belarus, wants to legalize cryptocurrencies in its territory. A group of deputies in cooperation with the Ukrainian Blockchain Association submitted a draft law to the Parliament, last October.
“The owner of cryptocurrencies has the right to freely dispose virtual currencies, in particular, to carry out exchange operations involving cryptocurrencies, electronic money, securities, services goods and more,”
Reads the drafted law. But being open with cryptocurrencies does not mean to not regulate the activities around them. The bill further explains:
“Cryptocurrency exchanges are obligated to follow all transactions, identify users and know the customers that transact in the platform,”
As well as the last two countries described, Estonia wants to evolve into a crypto-friendly country. This Baltic country that was part of the USSR, is one of the friendliest countries in relation to virtual currencies. It is a leader in developing high technology services and the first country to offer an e-residency.
Following the intention of becoming a real virtual nation, Estonia wanted to issue its own cryptocurrency named Estocoin. Estonia wanted to do it performing an Initial Coin Offering (ICO) that would help with its development. Ethereum’s founder, Vitalik Buterin, was involved in the project.
The main problem that Estonia had to face was dealing with the European Central Bank (ECB). The ECB immediately gave its statement regarding the cryptocurrency situation in the Baltic country. When Mario Draghi, president of the ECB, was asked about the Estocoin he answered that “no member state can introduce its own currency; the currency of the eurozone is the Euro.”
Estonia’s main intention is to attract investors from different countries facilitating the settlement process in the nation. As a recognised hub for technology developments, creating a deregulated framework for cryptocurrencies could have given an extra impulse to its economic growth.
A lot of ICOs and developers come from Russia. Different ICOs were created in the country and were raising millions of dollars. But different Russian institutions have clearly stated that cryptocurrencies and ICOs will be regulated.
“We do not reject anything, but there are serious, real, fundamental problem with the wide use of electronic money, at least today,”
Said Russian President Vladimir Putin according to a local media outlet. The main tool that Putin had in order to compete with cryptocurrencies was to create one.
Russia has decided to create its own cryptocurrency dubbed CryptoRuble. This cryptocurrency aims to reduce the use of other decentralized cryptocurrencies and avoid money laundering and terrorism financing activities. In addition to it, Central Bank’s Deputy Chairperson Olga Skorobogatova commented that Russia wants to test blockchain technology cooperating with the European Union.
Later in October, at a meeting of the State Duma, Vladivostok was selected to host two cryptocurrency agencies. The city will host a crypto-advisory agency and a crypto detective agency. This will allow the city to host different cryptocurrency activities and blockchain meetings.
This country located in Central Asia has also decided to issue a national cryptocurrency. The main difference between Russia and the other European countries is that it has decided to restrict cryptocurrency mining and platform exchanges. The main objective of this measures is to compete with cryptocurrencies and not allow them to replace the use of the official and legal fiat currency in the nation. Moreover, as many other regulatory agencies claim, it is important to protect citizens from an unregulated market or possible scams.
“High volatility the cryptocurrency prices in the short term can give the owner the opportunity to make money on speculative transactions,”
Said Daniyar Akishev according to Ria Novosti:
“We have sent our proposals to the government, in which we suggest carrying out a series of tougher measures, including prohibiting the exchange of the national currency for cryptocurrencies, prohibiting the activities of some companies that generate cryptocurrencies and so on.”
Date Published: Monday January 15, 2018
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