Due to the cumbersome nature of the European Union, it isn’t a surprise that Brussels has been extremely unhurried to take steps towards the crypto asset regulations. There has been no shortage of committees to make important crypto decisions and consider recommendations. This doesn’t mean that the crypto industry has been unregulated. Due to the absence of European Union regulations, individual nations under the European Union have set regulations of their own. Not all of these local measures have been positive for the crypto industry.
If we talk about the Netherlands, the Authority for the Financial Markets has asked the governing body to not allow the anonymous trading and exchange of cryptocurrencies. Only regulator-licensed individuals are allowed to participate in the crypto industry of the country. This has largely limited the crypto industry to a small number of licensed individuals.
In Bulgaria, the local tax authority has been into investigating the crypto trade. The tax authorities are planning to collect 10% of the profits derived from the investments made in the crypto sector. Another important issue is that the tax authority’s have already placed tremendous regulatory pressure and expenses on industry actors which could damage the crypto sector in the nation.
The tiny nation, Liechtenstein has been punching above its weight when it comes to blockchain technology. The “Blockchain Act” of Liechtenstein was announced in spring last year. This Act set clear rules for the blockchain technology and the firms which used the technology.
Liechtenstein will not be regulating cryptocurrency itself but it would be regulating the flow of crypto assets which includes tradeable security tokens. This law could make the tiny nation a centre of innovation for the blockchain community.
Across the continent of Europe, the cryptocurrency markets of Malta and Switzerland have for long been considered as the most vibrant. Unlike the other EU nations, which are always a step behind when it comes to innovations, Malta has decided to design their nation into a “Blockchain Island”. Malta will be the first legal jurisdiction in the world to provide full regulatory coverage to blockchain technology.
Switzerland has been positive and progressive towards the crypto sector. Switzerland has taken upon itself to lead the crypto innovation and revolution in Europe. The country has been home to Zug, which is a blockchain valley that acts as an incubator for new blockchain firms. The government of Switzerland has taken a creative approach to the crypto regulation, by the adoption of the existing financial laws which are needed for the blockchain sector. A draft proposal has been expected in the first quarter of this year.