Today’s world is pretty divided when it comes to cryptocurrencies. That division certainly reflects on the differences in crypto regulations around the world. We have crypto havens like Japan and South Korea where crypto assets are rapidly being adopted to the point of becoming a part of everyday life. We also have places like the USA where ICOs (Initial Coin Offerings) are banned by the law and all crypto related projects are carefully observed by the government bodies. In the midst of this polarized world European Union has decided to give cryptocurrencies and blockchain a chance to prove its worth.
EU Blockchain Observatory and Forum
In February this year, European Commission launched the EU Blockchain Observatory and Forum. It is stated in the report that blockchain technologies are bringing a higher level of security in economic transactions online and they are seen as a major breakthrough. The main idea of the Forum is to bring various sectors together. In that way, it will be possible for regulators and politicians to work together in order to find most suitable uses of the blockchain technology. It is said in the report that "The EU Blockchain Observatory and Forum will play an active role in helping Europe to seize new opportunities offered by blockchain, build expertise and show leadership in the field."
European Union stayed more cautious towards cryptocurrency regulations, but nonetheless, it is important to note that possible positive review of the technology from European Commission will certainly instigate EU towards more favorable laws regarding crypto space.
Spain’s Crypto Regulations
In Spain, EUs fifth largest country by population, recently it has been proposed a draft of legislation with the aim to regulate cryptocurrencies and blockchain technology. In the House Finance and Public Function Committee meeting, the draft initiate was pushed forward by Spain's majority parliamentary party, Partido Popular. Draft won the support of all parties present.
The basic idea of the draft is to create something that's called "regulatory sandboxes". These should serve as a controlled testing environment for introducing blockchain technology to the Spanish market.
The great news is coming for Fintech start-ups as Spain's Congress agreed upon the need to foster these start-ups. Also, Congress concluded that the blockchain technology is a cost-efficient system for payment and transfers.
These are great news for the crypto enthusiasts as Spain has shown leadership in the implementation of the blockchain technology. All of this is just a preparation for future huge movements of implementing blockchain into all the different government sectors and at the end of everyday life.
An important thing to take away from this is that despite somewhat bad publicity towards cryptocurrencies, government bodies around the world are clearly seeing the great potential of the technology. European Union is a huge market placed 2nd in largest economies of the world. The possible implementation of blockchain technology in EU might be a major turning point of the official climate towards blockchain and cryptocurrencies. As far as we can conclude, Spain's crypto friendly legislations are seen as a huge green flag towards future official EU regulations.
What do you think about Spanish draft legislation? Will it push EU towards crypto-friendly regulations of the whole market? Post your opinion in the comments.