Finance Wars: The FIAT “Strike back” on 2018 and Cryptocurrency 2017 bans list.
The ideal of Bitcoin in complicity with its disruptive technology, the blockchain, has caused a real revolution in the financial industry and in many other big industries, as well as in the health industry, which is beginning to propose new models and methods of security and data processing. Two years ago, Bitcoin was not as attractive or relevant to the financial industry as it is today, where the adoption of Bitcoin and its value has already attracted the attention of the entire world, including political power. The main concern seems to be based on the fact that Bitcoin may replace the current model based on FIAT money and tax collection and change the current economic power system, which earns profits with financial services, interests and transaction fees.
At the beginning of January 2018, it was known that VISA immediately canceled prepaid cards backed by cryptocurrencies, mostly in Bitcoin, due to a breach of contract by the Gibraltar WaveCrest company, which was the supplier of the plastic of several companies that provide financial services in Europe. Additionally, the government of the United States is looking for a surprising twist, updating its financial system with blockchain technology, with its huge federal gold reserves, the largest in the world, which will be supported by a cryptocurrency project called Fedcoin.
Cryptocurrency 2017 Banlist:
This last year there were many pronouncements both favorable and unfavorable in terms of regulation and prohibitions for Bitcoin and cryptocurrencies. As for the unfavorable news in blockchain industry for 2017, we could mention:
Bitcoin banned in Colombia – January 03, 2017.
It appears to be that not every nation in the world is in love with “The Internet of Money,” as the South American nation of Colombia has decided to end 2016 by banning Bitcoin usage, domestically.
Nigerian Central Bank bans Bitcoin – January 17, 2017.
The Central Bank of Nigeria (CBN) on Tuesday, January 17, has passed a notice to inform all Nigerian banks that all transaction in Bitcoin and other virtual currencies have been banned in Nigeria.
Venezuelan Police Dismantle Mining Farms – January 27, 2017.
The police of criminal investigations and organized crime begin to follow the Bitcoin farms, alleging that, among other crimes, Bitcoin is an illicit exchange due to the strong exchange regulations that exist in the South American country.
PayPal maybe closing accounts because of Bitcoin-related transactions – April 04, 2017.
The financial giant seems to have been behind the clients that carry out electronic transactions on their platform which are related to cryptocurrencies. Reddit has reported multiple complaints from customers affected by the closing of accounts because, according to PayPal, Bitcoin-related transactions are considered “high risk” that do not comply with the online financial platform policies.
Kuwait Ministry of Finance bans Bitcoin – July 28, 2017.
According to the country’s Ministry of Finance, the biggest cryptocurrency will not be legitimized in Kuwait. This means that bitcoin trading of all sorts is forbidden for the financial institutions regulated by the Middle East finance authority.
China bans initial coin offerings (ICOs) – September 05, 2017.
Calling them ‘illegal fundraising’ The People’s Bank of China has declared (ICOs) illegal and wants them to “cease immediately”.
China shuts down cryptocurrency exchanges – September 09, 2017.
Probably one of the most relevant news in the Blockchain industry, after banning the ICOs, the Chinese authorities have ordered Beijing-based cryptocurrency exchanges to cease trading and immediately notify users of their closure, signaling to widening crackdown by authorities on the industry to contain financial risks.
Morocco Central Bank bans Bitcoin – November 27, 2017.
Ironically, this came just days after domestic digital services provider MTDS announced that it would accept Bitcoin as payment for the first time. Like the other countries before it, Morocco’s central bank cited “a hidden payment system that is not backed by any financial institution” as its reasoning for banning Bitcoin and other digital currencies.
Algerian Government is going to ban Bitcoin in the new Finance law of 2018 – December 28, 2017.
According to the “Journal Officiel” on the 113 article of the law “The purchase, sale, use and holding of so-called virtual currency is prohibited. Any breach of this provision is punishable in accordance with the laws and regulations in force.”
On Wikipedia, you can find a complete and detailed list of each country and region on the legal status of Bitcoin and cryptocurrencies.
Bitcoin and the Blockchain industry have also received many good news throughout 2017. Most likely, one of the most relevant was its exponential growth in the market where only Bitcoin grew more than 15 times its market capitalization. Additionally, there was exponential growth for others cryptocurrencies such as Ethereum and Ripple.