THE BLOCKCHAIN BULLETIN 2.0
Explore some parts of the world that are ready to welcome the trending technology
Recently a news read that France has become the first country in the European region to welcome cryptocurrencies as they have initiated a full-fledged legalization of the framework. The progressive nature and a handsome futuristic approach to change was visible through the response as a green signal for the financial and technology companies who were allowed to trade non-listed technologies through blockchain platforms.
France has exemplified liberalization in business by taking some calculated risks in their stance on cryptocurrencies. The country has treated this unlisted financial securities as similar to the normal instruments and they will not be falling under the same label.
What goes within?
The French government is taking sensible steps towards empowerment of companies and commercial firms so that they can indulge in exchanging commercial valuables in this trade and business. This country has also expanded its blockchain innovation to the stock market trading platforms (very soon). Success looks more probable for the Frenchman because they have built a belief in DLT that it can be secure, transparent and faster alternative to orthodox payment methods and transactions. The time stamping and proper regulation of blockchain transactions have raised a new trend which brings in the trust between parties while they seal the deal.
It is a well-established fact that this country has allowed cryptocurrencies to operate freely and they are ready to welcome this technology into their stock market trading platform.
A minor sense of uncertainty and disagreement seems to be planted within a different business sector as the higher government officials have expressed their thought that block chains and virtual currencies should be regulated on a global scale rather than just a national level as that seems to be making more sense and being more effective.
Illinois has hijacked the economic growth in the latest fashion blockchains and cryptocurrencies. This country has found a short route to success with the use of drugs and technology in their governmental infrastructure. The country is also having a vision of replacing their old IT resources with this new technology for a better efficiency at work. Do you think tank of the government of Illinois is of the opinion that blockchains can help the government enhance the reliability of database? Moreover, this also widens the scope of cyber security enhancements.
The Present Scenario
The state government is most concerned about the sustainability of this technology and its complex uses to ensure that rigorous and persistent effort in bringing these theoretical uses to government makes some real sense. The most influential minds associated with the Illinois government think that incorporation of this technology can help them improve operations at the grassroots level and also enhance the cybersecurity of their software system and databases.
A Yes and A No
We all know that their government has restricted cryptocurrency digital products into trade extensively. But the country has said a yes to change and its use in different governmental organizations. The step of making data available and transparent to all wings of the government and private sectors has been fantastic on their side. The roadmap of this ultimate application of blockchain starts with regarding the initial primary data of the identity in population and then stretching the same for tightening the records under the same name whether it be in land registries or vehicle insurances or this may be their credit scores and gun registration as well.
One of the most important members of the European Union thinks that the cryptocurrencies are borderless and they need to be regulated globally. Germany thinks that the most effective regulation of virtual currencies is only possible through a uniform international control.
How do they authorize?
The German Finance Department has ordered to index all the exchanges of crypto sector. The new rules state that anyone indulging in buying or selling of tokens, ensuring its acquisition and also runs a secondary market confirm on a commercial basis is bound to be authorized from the German regulation authority prior trading.
This kind of broker ship license will have certain requirements to be fulfilled:
1) Min. capital of 25k-200k euros
2) The title belongs to the name of a person who has been in a leading position in the bank or other financial institution for over three years.
3) A proper professional liability insurance
Some Important Info
It has to be carefully noted that Germany is not taking Crypto under VAT regulation but they will certainly schedule raids to check the working. This is well supported by the decision of keeping the basic rights of randomly investigating ICOs for their records and activities.
Effects of Such a Regulatory Structure
The German economy has been quite and a little stagnant as the SMEs and start-ups can see a suppressed growth in their sales with such declarations. The possibilities and opportunities for their business and sale growth are curtailed by such an irresponsible stance by the German government.
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About The Author
My name is Stuti Dhruv & I am senior consultant at Aalpha, primarily working on pre sales, consulting with clients on latest technology trends.