International cryptocurrency regulation will create win-win situations


Initial coin offerings on blockchain platforms have painted the world red for tech startups around the world. A decentralized network that can award tokens to users who back an idea with money is both revolutionary and rewarding.

Profit-spinning Bitcoin turned out to be an ‘asset’ for early investors that delivered multiple returns in 2017. Cryptocurrency investors and exchanges around the world seized the opportunity and reaped huge returns for themselves, leading to the rise of numerous online exchanges. Other cryptocurrencies such as Ethereum, Ripple and other ICOs have promised even better results. (Ethereum grew by more than 88 times in 2017!)

While ICOs brought millions of dollars into the hands of startups within days, the ruling governments initially decided to follow the fastest growing fintech ever that had the potential to raise millions of dollars in a very short period of time.

Countries around the world are considering regulating cryptocurrencies

But regulators have grown wary as the technology and its underlying effects have gained traction as ICOs begin to contemplate billions of dollars worth of funds — and proposed plans written in white papers.

Governments around the world took the opportunity to intervene in late 2017. While China banned cryptocurrencies entirely, the SEC (Securities and Exchange Commission) in the US highlighted the risks posed to vulnerable investors and proposed treating them as securities.

A recent warning from SEC Chairman Jay Clayton issued in December cautioned investors to mention,

“Also be aware that these markets span national borders and that significant trading may occur on systems and platforms outside of the United States. Your invested funds may quickly travel abroad without your knowledge. As a result, risks may increase, including the risk that market regulators, such as the SEC, may not be able to effectively prosecute bad actors or recover funds.”

This was followed by concerns from India, where Finance Minister Arun Jaitley said in February that India does not recognize cryptocurrencies.

In a circular sent by the Reserve Bank of India to other banks on April 6, 2018, banks were asked to sever ties with companies and exchanges engaged in cryptocurrency trading or transactions.

In Britain, the FCA (Financial Conduct Authority) announced in March that it had formed a cryptocurrency task force and would take help from the Bank of England to regulate the cryptocurrency sector.

Different laws, tax structures in different countries

Cryptocurrencies are generally coins or tokens launched on a cryptographic network and can be traded globally. While cryptocurrencies have more or less the same value around the world, countries with different laws and regulations can yield different returns for investors who may be nationals of different countries.

Different laws for investors from different countries would make calculating returns a tedious and cumbersome exercise.

This would involve investing time, resources and strategies that would cause the process to be unnecessarily prolonged.

The solution

Instead of many countries enacting different laws for global cryptocurrencies, there should be the constitution of a single global regulatory body with laws that apply across borders. Such a move would play an important role in improving the legal trading of cryptocurrencies worldwide.

Organizations with global goals such as UNO (United Nations Organization), World Trade Organization (WTO), World Economic Forum (WEF), International Trade Organization (ITO) are already playing an important role in uniting the world on various fronts.

Cryptocurrencies were formed with the basic idea of ​​transferring funds around the world. They have more or less similar value on all exchanges, except for negligible arbitrage.

A global regulatory body that would regulate cryptocurrencies worldwide is the need of the hour and could set global rules to regulate the latest way of funding ideas. Currently, each country is trying to regulate virtual currencies through laws, the drafting of which is ongoing.

If economic superpowers can build a consensus with other countries by introducing a regulatory body with laws that do not know national borders, then this would be one of the biggest breakthroughs in designing a world that is friendly and encourages the use of one of the most transparent fintechs. system ever–“block chain.

A universal regulation consisting of subsections related to cryptocurrency trading, refunds, taxes, penalties, KYC procedures, exchange-related laws and penalties for illegal hacks may bring us the following advantages.

  1. This can make calculating profits super easy for investors around the world as there would be no difference in net profit due to the uniform tax structure

  2. Countries around the world can agree to share a certain portion of profits as taxes. Therefore, the countries’ share of collected taxes would be uniform throughout the world.

  3. The time involved in constituting numerous committees, drafting laws followed by discussions in the legislative arena (like the Parliament in India and the Senate in the US) could be saved.

  4. You don’t need to go through the strict tax laws of each country. Especially those involved in multinational trade.

  5. Even companies offering tokens or ICOs would comply with said ‘international law’. Therefore, calculating the after-tax income would be a cakewalk for companies

  6. A global structure would require more companies coming up with better ideas, thus increasing employment opportunities worldwide.

  7. The law may be supported by an international watchdog or global currency regulator, which may have the power to blacklist an ICO offering that does not comply with the norms.

These are not all the advantages when it comes to the law that would regulate cryptocurrencies around the world. There are certain shortcomings also.

Getting the world’s financial leaders to come together and draft legislation could take time. Discussions and bringing them to consensus can be challenging

  1. Countries or economies that provide tax-free structures may not agree to accept legislation that provides for a universal taxation policy

  2. The involvement of a global watchdog or regulatory body in monitoring regulatory developments related to ICOs may not go down well in some countries

  3. A universal law can cause the world to split into factions. Countries that don’t support cryptocurrencies like China may not be part of it.

  4. A law may be the brainchild of economically strong nations who may design it to suit their best interests.

  5. This law would be centralized with a global regulatory body unlike cryptocurrencies which are decentralized in nature.


The world was together for the better. Whether it’s creating a peaceful world after World War II, or coming together for better trade laws and treaties.

The International Trade Organization (ITO), the World Trade Organization and the World Economic Forum have some of the best minds defining the global economy.

They can come together and be part of a body that would define the economic prosperity of the world. They would help craft global norms for cryptocurrencies and could be part of a regulatory body that would be a guide and beacon to thousands of ICOs around the world for the better. This may be time consuming at first, but it would make things easier for times to come.