As it focuses on blockchain technology and utilization in non-financial fields as well as financial services (traditional, medical, and document management), the world is making efforts to foster technologies. In particular, a blueprint for job creation and economic growth, which will result from technological development, has been presented, and the blockchain and cryptocurrency are being quickly dealt with.
Not only Zug in Switzerland, which is the first to construct "Crypto Valley," but Malta, India and Dubai, which are planning to promote the island as a blockchain island by introducing three laws. As Jeju Island announced plans to build a Crypto Valley in Korea, Korea is also becoming a major blockchain country.
At the "Block Chain Seoul 2018" event, which will be held from April 17 to 19 at COEX in Seoul, major figures from the so-called "B7" will gather together. In these countries, we have discussed the laws and systems for which cryptocurrency, Initial Coin Offering (ICO) is operated, and the trends of each country.
■ Switzerland
Jug in Switzerland was the first place to be named 'Crypto Valley'. It is also revered as a "gender" by many blockchain companies and cryptocurrency operators. Switzerland does not require any special licenses for cryptocurrency business. However, Swiss financial market supervisory authorities (FINMA) will categorize tokens issued by ICO and examine compliance with various regulations only for securities-type or asset-type tokens. Tokens are classified by nature as payable, utility-type, and securities (asset). In the case of securities, it looks at compliance with the anti-money laundering regulation, and is also showing an acceptable attitude toward tokens.
■ Singapore
The Singapore Financial Supervisory Service released guidelines on cryptocurrency and ICOs in November 2017. The Financial Supervisory Service does not supervise cryptocurrency, but it stresses that brokers of cryptocurrency should comply with laws and regulations to prevent money laundering. The ICO needs permission from the authorities on the stock-type token. In addition, Singapore is actively developing related technology developers, saying it will actively lead Singapore's development of blockchain in April.
■ Malta
Malta established its blockchain work team as a national strategy in September 2017. Three related bills, including cryptocurrency, have been approved. Due to this reason, 'OKEx', which is considered the world's largest cryptocurrency exchange, has also been moved to Malta. The recently passed bill is the Malta Digital Innovation Authority Bill.
The Malta Digital Transformation Management Administration Bill focuses on protecting the interests of consumers and investors and harmonizing with EU standards. A bill that contains standards for identifying, managing and guiding innovative technologies and services by the Digital Innovation Management Authority of Malta is a technical care and service bill. Finally, the Virtual Financial Assets Act contained principles that companies should follow when carrying out ICO. Malta called ICO a virtual financial asset. According to this, companies that intend to establish ICO should also supervise and manage related business advertisements.
■ Estonia
Estonia's Financial Supervisory Service (EFSA) presented guidelines for ICO. Tokens issued through ICO under the Securities Market Act and the Securities Act may be considered securities and, if deemed to be securities, will be subject to such laws. The criterion classified as a stock token is a token that grants investors some rights to the entity that is issued, or that the value of the token is linked to future gains or business success. Where this definition is included, individual investment manuals shall be registered in accordance with section 12 of the Securities Act, and any entity issuing tokens corresponding to the securities shall obtain approval under section 43 of the Securities Act.
In addition, if businesses transact cryptocurrency, they must obtain approval from the relevant laws for money laundering and prevention of terrorist funding. However, Estonia is receiving spotlight from related businesses as it is easy to establish a local corporation. Estonia has a minimum capital of €2,500 and a two-week time period.
■ Dubai
Dubai announced its plan to establish a blockchain-based government system by 2020. Dubai Future Museum Foundation formed 'Global Block Chain Concepts Conference' consisting of 47 members from public and private sectors in April 2016 and is currently in the process of transferring health records, diamond transactions, and registration of business operators.
■ India
It is heard that the Bank of India is preparing to establish a department exclusively for cryptocurrency and blockchain. It is planning to study how much cryptocurrency can be linked to existing banking systems when establishing departments. The central bank earlier announced that it should ban cryptographic services to regulated institutions and private businesses of the central bank. However, in July, the Indian finance ministry reportedly started research to cancel the entire ban on cryptocurrency and consider them "goods."
■ Then, what about Korea?
The Korean government has yet to come up with clear bills on cryptocurrency and ICOs. Although it announced last year that it would ban ICO altogether and decided to close the encryption exchange in January, it changed its stance to use real-name accounts to trade the transaction. On June 26, the Financial Services Commission revised the guidelines to prevent money laundering on the Cryptocurrency Exchange. Without a clear legal system, Jeju Governor Won Hee-ryong officially proposed to the government in August to designate Jeju as a special blockchain zone. This is to ensure business activities of businesses related to blockchain and cryptocurrency within Jeju Island and to create appropriate regulatory models.