According to a report by the Cyprus Mail, a new cryptocurrency legislation for safe cryptocurrency exchange could be introduced in the EU countries. By this new legislation, under the new guidelines, Bitcoin and other digital currencies will be named monetary instruments all through Europe. This means legal cryptocurrency exchange will be more transparent than ever. Moreover, it is said that this new legislation will encourage the innovation associated to crypto and blockchains sector, writes Graham Paul.
The European Union has been working to make an exchange regulatory and legal framework on cryptocurrencies for almost a year. In this regard, the European Commission opened a consultation in December 2019 during which it publicly asked about comments on crypto regulation. The consultation was attended by top private companies such as Google and PayPal. In is the consultation the EU commission discussed on how to make the regulation more feasible, the obstacles that they may face while implementing those regulation and how to tackle those obstacles in an organized and efficient way.
At the end of the long consultation, European Commission Executive President Valdis Dombrovskis said that it was the lack of legal certainty which was the main blockade in the development of a strong crypto asset market in EU. He also added that, with European companies as the leading front in the innovation for digital finance, there is a good chance for Europe to become a global standard setter and toughen its international standing with this new legislation.
Cryptocurrencies are to be categorized as financial objects
Bruno Schneider-Le Saout, the president of the Brussels-based Blockchain Federation said, the new enactment will uphold European computerized finance for a long time to come. He believes that this new legislation will bring legal certainty which is crucial for both crypto assets as well as for implementation of DLT (distributed ledger technology) services and tokenization of financial instruments. Schneider-Le Saou also added that, it is pivotal that cryptographic forms of money will be recognized as financial instruments. This would permit this benefit class to be included for the European Union’s lawful instruments managing the business sectors. This new regulation will have a great impact over the previous one.
It is seen that often people shy away from using cryptocurrencies due to its ambiguous legal credibility. While exchange of cryptocurrencies is completely legal in Europe, some people still have the idea that, cryptocurrencies are mostly used for illegal exchange. The reason behind this is people’s misconception of crypto. A clear legislation that applies solid regulation will change people perspective of crypto. Bitcoin and other cryptocurrencies are being used for legal day to day transactions now more than ever and it’s uses will multiply significantly in the near future.
A new study by Bitfury’s analytics platform Crystal has revealed that the US has the most cryptocurrency transaction record between Jan 1 2013 and June 30 2019. Followed by UK and Honk Kong. The EU countries are also in the top list. It can be expected that this new legislation will shape the number of exchanges of currencies for EU countries to the peak.
Cryptocurrency is a currency system that does not require a third party to exchange money. Cryptocurrency reaches the recipient directly from the sender. This system is called ‘peer-to-peer’ network system. The transaction is completed using cryptography which is a very secure process. Since no third-party entity controls the transaction process, it is not possible to determine the transaction dynamics of cryptocurrency. This means that no one can know who is sending money to whom. Cryptocurrency transactions can be done with complete anonymity.
Bitcoin is currently the most popular and valuable cryptocurrency in the world. Ethereum, Dash, Litecoin, XRP, Tether, EOS are cryptocurrencies with a great potential. It can be expected that people in EU will engage in buying bitcoin and other cryptocurrencies more once this new legislation is passed.
With the use of cryptocurrency being more prominent day by day it would be useful to know some of its advantages.
Advantages of using cryptocurrency
Cryptocurrency is a completely decentralized currency system. Neither the govt nor any authority controls it. As a result of the peer-to-peer system, every user here is the real owner of their cryptocurrency. Nobody else can take ownership of their bitcoin network. Eliminates the chances of fraud or deceit.
The whole process of cryptocurrency transactions is anonymous. A crypto user can open multiple crypto accounts. No personal information, like username, address, etc. is required to open these accounts. As a result, the important identity of the user remains secret. This means no identity theft.
Creating a cryptocurrency account is very easy. During this case, there’s no got to fill any troublesome form like opening a traditional checking account. No extra fees are required. No paperwork is required. The crypto transaction process is extremely fast. regardless of where the bitcoin is shipped from, it’ll reach the recipient during a matter of minutes. This makes immediate settlement.
The cryptocurrency transaction process is completed very transparently. Records of every transaction are stored during a blockchain that anyone can view from any a part of the planet.
Since cryptocurrency removes the middle man in the transaction, no need of transaction fees.
Safe cryptocurrency exchange
One of the main concerns that people have about exchange of cryptocurrencies is safety. Safe cryptocurrency exchange can only be ensured from a licensed cryptocurrency exchange company or site or organization. Safety being one of the top objectives of this new cryptocurrency legislation, people can except a safer and easier use of cryptocurrencies. It will set a global standard and will possibly have a big positive impact in the days to come. No doubt legislations and security measures will make safe cryptocurrency exchange easier and more credible.
With the use of cryptocurrency increasing day by day more, people will more and more engage in buying bitcoin and other cryptocurrency. But before buying and investing in cryptocurrency it is crucial to understand its values and trends. There are a few precautions that needs to taken before buying or investing in cryptocurrencies. There are many paths can can lead you to unsure line which could you in trouble. There are a lot of ways safe ways to buy cryptocurrencies but there are also many which are unsafe.These unsecured sources can lead to malware scams, fake bitcoins, ponzi scheme, ICO scam.So it is best to do know about the seller’s credibility. It is highly essential to buy bitcoin from a licensed cryptocurrency exchange site or company. It is necessary that the owner, site, or company has a legal credibility.
No one can predict the future. Some of the famous economists think that in the future cryptocurrency will run the world, paper notes will not exist. There is no doubt that the graph of importance of blockchain and bitcoin in the world is upward.Considering it’s great potential, buying and investing in crypto might be a step in right decision for a profitable future.