In the race for cryptocurrency regulation, we have recently heard input from countries such as South Korea and Thailand, both of whom are looking to establish new cryptocurrency regulations that would allow for cryptocurrency trading to still take place. This, comes off the back of other countries such as Japan that have already rolled out successful regulations which are proving to be very fruitful for the cryptocurrency industry in the area.
In contrast to this, we can look towards countries such as India, where cryptocurrency seems to be on the verge of being outlawed, to really see what sort of implications prohibition and outright stringent regulations can have on the crypto community.
Worldwide many countries are working on establishing new orders in which to work with cryptocurrency, here in the UK, we see similar things happening with the Bank of England and of course the government task force which has been set up to debate and discuss how blockchain regulations could impact us here.
Chile look to be next up on the register. According to new reports, which discuss that Mario Marcel, the president of Chile’s central bank, is considering establishing cryptocurrency regulations to monitor risk and to essentially keep a close eye on the industry. As it stands at the moment in Chile, cryptocurrencies have no regulation attached to them and can be traded freely.
According to reports, Marcel has said:
“Incorporating regulation will allow having a registry of participants in these activities and thus have information to monitor the associated risks. These activities could be developed under more robust standards and mechanisms, especially in terms of market transparency, consumer protection, and prevention of money laundering and terrorist financing.”
Furthermore, it does seem that here, authorities are wanting to take a more relaxed approach to regulation that would in turn foster the cryptocurrency industry and allow it to grow, a stark contrast to what we have seen in India and other countries such as Mexico.
As it is with many parts of the world, cryptocurrency and blockchain technology is growing in Chile. In order for the country to make the most of it, they do need to establish some regulations, that’s the view of the crypto-adoption camp at least. But likewise, in order to allow the industry to flourish, Chile do need to be careful with how far they take these regulations. Regulation does not mean censorship, therefore the central bank here do need to be careful with how they implement any new regulations.
In an ideal world, like Japan, Chile will turn to exchanges and the currencies themselves to ensure they are operating legally and safely, this in turn promises to reduce crime and most importantly, reduce the risk that traders and investors are exposed too.
We will keep an eye on this story as the news develops. Once we know more about the approach Marcel wishes to take, we can then start to see how this might benefit, or indeed cause problems, to the cryptocurrency and blockchain industry in Chile.