- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
The U.S. state of Colorado has considered a bill that will make cryptocurrencies exempt from some securities laws. The bill is called “Colorado Digital Token Act.”
As cryptocurrency continues to reach all corners of the world and flourish, we are increasingly seeing governments around the world attempt to control and restrain it. Cryptocurrency is still relatively new, and many people are cautious of it and question its place in our financial system. It is true that cryptocurrency, by its nature, can lend itself to criminals. It is anonymous and untraceable in its simplest form, making it an attractive choice for money laundering operations or shady transactions of illegitimate goods either on the dark web or on the streets.
This cautiousness has caused different governments to take a varied stance on cryptocurrency. Many people view cryptocurrency as simply a new form of currency, and as such, expect it to fall in line with the current legislature ruling how our financial systems operate. For others, cryptocurrency represents a new and evolved way of handling currency, one where personal agency and privacy is respected above all else. It is also fair to say that for many governing bodies, it is simply easier to capture cryptocurrency under their current legislation than it is to set up a new rule base.
However, blockchain technology has steadily been growing more traction. Blockchain technology is popping up in applications everywhere, and countries with a strong tech and science output don’t want to be left behind. This is also true for Colorado, in the bill it states:
“blockchain technology has the potential to create new forms of decentralized “web 3.0” platforms and applications that have advantages over the current centralized internet platforms and applications;”
Colorado has become a hub for companies and entrepreneurs that seek to utilize cryptoeconomic systems to power blockchain technology-based business models;”
The costs and complexities of state securities registration can outweigh the benefits to Colorado businesses using cryptoeconomic systems that seek to raise growth capital.”
In this context, it is clear to see why Colorado want to relax the laws around cryptocurrency in order to stimulate innovation in their state. They recognize that blockchain is an emerging technology and at this stage in its infancy, it needs to be nurtured into becoming a potentially essential technology that underpins many aspects of society in years to come.