CRYPTOCURRENCIES

CRYPTOCURRENCIES
• Project Number :1
• Submitted by:DENISH P MATHEW
• Registration Number:FIP12024
• DESCRIPTION :In this project we are discussing the following
contents.
• Approaches of different countries in cryptocurrency adoption.
• Operational difference between paper currency and cryptocurrency.
• Challenges faced by central banks in adopting cryptocurrencies.
APPROACHES BY DIFFERENT
COUNTRIES
1.CANADA
• Not a legal tender.
• Cryptocurrency exchanges:Legal,required to register with FinTRAC
after June 1,2020.
• Future Regulation:Canadian government and crypto exchanges need
time for to evaluate how recent changes affected crypto landscape.
 2.SINGAPORE
• Not a legal tender.
• Cryptocurreny exchanges: Legal,Registration with Monetary Authority
of Singapore required.
• Future regulations: Singapore’s recent regulatory efforts reflect a
renewed international interest in its crypto industry. Chinese service
providers like ByBit, Okcoin and their customers may migrate to
Singapore.
 3.AUSTRALIA
• Cryptocurrencies:Legal,treated as prosperty.
• Cryptocurrency exchanges:Legal,must register with AUSTRAC.
• Future regulations:Australia announced plans to introduce a new
licensing framework in 2022.It enable customers to safely purchase
and sell crypto assets in a regulated environment.
 4.JAPAN
• Cryptocurrencies:Legal,treated as property.
• Cryptocurrency exchanges:Legal,Should register with Financial
Services Agency.
• Japan currently have the most progressive regulatory climate for
cryprtocurrencies.
• Future regulations:FSA indicated that it would propose legislation in
202 to regulate stablecoins issuers.It also include new security
protocols.
 5.SOUTH KOREA
• Cryptocurrencies:Not a legal tender.
• Cryptocurrency exchanges:Legal,must register with FSS.
• Future regulations:Proposed tax on cryptocurrencies missed its
original implementation date and been delayed until January
2023.They work to bring industry into alignment with FATF’s anti-
money laundering policies.
 6.CHINA
• Crptocurrencies:Not a legal tender.
• Cryptocurrency exchanges:Illegal.
• PBOC banned in 2013.
• Future regulations: No indication that it lift or remove ban. It
completed piolot tests of its e-CNY currency in several cities.
 7.UK
• Cryptourrencies:Not a legal tender.
• Cryptourrency exchanges:Legal,registration requirements with FCA.
• Future regulations:Government recently announced plan for
legislation to address misleading crypto asset promotions.
 8.SWITZERLAND
• Cryptocurrencies:Legal,accepted as a paymet in some contexts.
• Cryptocurrency exchanges:Legal,regulated by SFTA.
• In 2021,they introduced Distributed Ledger Technology(DLT).
• Future regulations:In 2021,proposed to further adapt existing
financial regulations to address their illegal use.
 9.The EU
• Cryptocurrencies: Legal, member states may not introduce their own
cryptocurrencies.
• Cryptocurrency exchanges: Regulations vary by member state.
• Future regulations: In 2020, introduced a new proposal known as
Markets in Crypto-Assets Regulation(MICA).In 2021,EC published a set
of legislative proposals for Virtual Asset Service Providers(VASP)
across the bloc.
 10.INDIA
• Cryptocurrencies:Not a legal tender.
• Cryptocurrency exchanges:Regulations being considered.
• In February 2022,finance minister indicated that cryptocurrency
transactions could face a 30 percent tax.
• Future regulations:A new cryptocurrency bill-known as
Cryptocurrency and Regulation of Official Digital Currency Bill- would
be forthcoming.
OPERATIONAL DIFFERENCE BETWEEN
CRYPTOCURRENCY AND PAPER CURRENCY
• A cryptocurrency is a digital or virtual form of currency walled by
cryptography, a network disbursed across a large number of computers
which makes it nearly impossible to counterfeit or double-spend.

• It works on decentralized networks that support blockchain technology.

• Through cryptocurrency,it is easier to transfer funds directly between

two parties.
CHALLENGES OF CENTRAL BANKS
• The increased threats to privacy of individuals.
• The currency can be produced by anyone.
• Intermediaries are no longer required to manage and distribute
currency.
• Value is too unstable.
THANK YOU