What is leading to high demand for Cryptocurrency compliance?
The growing emergence of Cryptocurrency has made it a popular choice of investment among individuals who wish to block digital assets. In the preryptocurrency era, where people invested in assets such as gold and real estate to increase their wealth, Cryptocurrency has overpowered them. At an age where a large number of people are using digital platforms to buy or sell products, cryptocurrency has left investors across all sectors enamored.
Back in 2009, when Satoshi Nakamoto introduced Bitcoin, people were not willing to invest in it. Thirteen years later, the Bitcoin blockchain has become a rage. In the past one year, investors across the world have amassed uncountable wealth in the form of these cryptocurrency investments.
India’s stand on cryptocurrency compliance
Coming back to India, our country has still not legalised Cryptocurrency. Since it is not regulated by a centralised bank such as the Reserve Bank of India or any Non-Banking Financial Company (NBFC), for a long time, the Central government has been following a middle path of looking at strictly controlling the use of blockchain technologies.
Due to the rapid growth of these digital currencies, it has become essential to set up a regulatory policy in India. Having an in-depth understanding of the market, High Beam Global, a market research company, believes there is a huge demand for cryptocurrency compliance.
The company has carried out extensive studies, that suggest that due to the popularity of crypto as an asset, countries across the globe have taken measures to ensure a secure ecosystem for investors. On the other hand, the cryptocurrency exchanges in India are following self-regulatory practices. This is being done to provide a safe and secure environment to the investors.
As a market research company, High Beam Global has had the opportunity to interact with many banking institutions and founders of Cryptocurrency firms. All of them echo those countries such as Japan, Singapore, and the UK that have implemented regulatory laws for crypto assets to protect investors. However, in the case of India, we undergo a set of unique situations for which the higher authorities are still trying to find a solution.
One of the standard measures that all cryptocurrency firms have implemented is to follow stringent KYC verification and Anti Money Laundering compliance policies for individuals who use their platforms. The central government is mulling to update the code of conduct, for India’s Cryptocurrency sector. The move is being taken when, Cryptocurrency assets are being scrutinised by several regulatory bodies such as the Income Tax Department, Enforcement Directorate and other bodies.
How is the world dealing with Cryptocurrency regulations
In powerful countries like the United States of America, Cryptocurrency has become legal. It has been passed under the Bank Secrecy Act, where financial institutions consider these digital currencies to be securities. To encourage more and more people to invest in Cryptocurrency, the US has come up with laws that ensure that both the investors and buyers feel safe while trading with this digital investment.
On the other hand, in the United Kingdom, the government has made it clear that Cryptocurrency can be treated as capital assets. According to their government protocols, gains or losses on Cryptocurrency are subject to capital gains tax. The UK government makes sure that all the exchanges must be registered with the Financial Conduct Authority to protect the investors.
In the case of Singapore, it has been observed that there has been an expansion, in the crypto market after China started a crackdown on crypto mining. Their government has come up with legislation under the Payment Services Act, where an entity needs to hold a license to facilitate the transmission, exchange, or
storage of cryptocurrencies. The government has curated a list of guidelines that make it clear to follow Anti Money Laundering initiative.
The Role of HBG in Market Research
Due to the lack of Cryptocurrency regulations compliance, investors often find themselves in a tough spot. It is here that we provide them insights using primary research so that they can make wise decisions.
Cryptocurrency is here to stay. With regulations evolving in other parts of the world and India too catching up with the regulations, it is imperative that investors must do thorough market research on these forms of digital assets. As a well-established market research company, High Beam Global offers the perfect blend of research and data.