Banks and Cryptocurrencies in Europe

Saturday May 19, 2018

Before G- 20 summit in Buenos Aires, Argentina, the hype was going on that Cryptocurrency and Initial Coin Offering is the threat to the global economy and some powerful countries will take a strict decision against it in this G-20 summit.  But, after a statement from Bank of England Deputy Governor, Sir Jon Cunliffe, has claimed that the leading cryptocurrency Bitcoin poses no real threat to the global economy and financial institutions despite its current phenomenal performance in the market. Somewhere this was a vital statement, which ensures the positive approach of Britain toward the Cryptocurrency. Now Cryptocurrency is legal in the England and users need to pay capital gains tax in a certain situation.  Well, this was a short story from Britain which shows if you have a proper approach toward innovative technology, then despite all bottleneck, you can regulate it without any hassle. We want to remind you that now England is no more part of Europe and after BREXIT the country is facing uneven growth in many sectors.

Now after watching England’s approach toward Cryptocurrency, we will discuss the evaluation of Cryptocurrency and Bank in Europe.

Russia:

After proposing the asset regulation bill in January 2018, Russia’s approach toward Cryptocurrency is quite positive now. On 20 March 2018, Russian government establishes a regulatory framework for cryptocurrencies and initial coin offering (ICOs). However, regarding security concern of other nation, the bill redefines virtual currency as a financial asset and only allows trading on authorized exchanges. Apart from that, it also requires compliance with the Anti-Money Laundering (AML), Knows Your Customer (KYC), and Counter-Terrorist Financing laws.

France:

Édouard Philippe administration adopted a meticulous approach in regulating cryptocurrency. To ensure the security of the country from money laundering, cyber-attack, the government proposed a ban on crypto investment companies. Besides, the ministry of Economy created a task force earlier this year aimed at examining possible regulations for the market to address tax evasion and terrorism funding. Apart from that, French financial market regulators announced a proposal for legislation outlining rules for ICOs in March.

Finland:

Due to the anonymous nature and rapid increase in Crypto transaction, the banks of Finland refused to conduct the business with the country’s largest virtual wallet service provider, Prasos Oy. Now banks are blocking transaction from major exchanges.

Sweden:

Once Sweden was heading toward first cashless county in Europe. But Bank for International Settlements (BIS) has issued a warning to central banks to reconsider the impact and unknown risks associated with the cryptocurrency market. Apart from that, the Swedish government is appreciating and encouraging the Blockchain technology for secure trading among global financial institution.

Switzerland:
Switzerland is the best place for Cryptocurrency and ICO Initial Coin offering. Due to the easy taxation law on Cryptocurrency and a fantastic atmosphere for startups, Blockchain entrepreneurs are settling in the country. Four of the six biggest ICOs occurred in Switzerland, which has around 200 Blockchain companies in operation, including Ethereum. However, To control the unregulated ICO, Finma, the country’s financial watchdog, established regulatory guidelines.

If we talk about Banks in the country, then banks are divided on this issue. Where some banks successfully experimented with cryptocurrency products, crypto-asset management, and trading services, the same Swiss banks, UBS and Credit Suisse, remain skeptical of virtual currencies and warn customers of the volatility and scam risks associated with transactions.

Germany:
After Japan in Asia, Germany is the first country in Europe who accepted Bitcoin as a legal currency. However, before this, the German government issued several notices to crypto investors but later regulated it in 2014.   A subsidiary of the country’s second-largest stock exchange announced plans to launch a cryptocurrency trading app, Bison, earlier this month. Bison will be the first ever trading app to be backed by a traditional stock exchange.