Digital Coin Regulation
Although the term “digital coin” has varying definitions depending on the country, it generally refers to the use of cryptographic funds. The S.E.C., the securities and exchange commission, is one agency that has yet to make a final decision regarding its classification. The SEC has yet to decide whether digital coins should be regulated as a security or an investment. Nevertheless, many people are already invested in digital coins.
The S.E.C. is yet to decide how it will regulate this new form of money. However, it has publicly threatened Hollywood stars with legal action if they promote it. For now, the SEC will not make a final decision on the issue. The S.E.C. is not interested in deciding what to do about these coins. In the meantime, the media is taking the position that these celebrities should stay away from digital coins and other digital currencies.
The S.E.C. has yet to make a decision about whether this project is legal. It is not clear what its stance will be. It is important to note that the S.E.C. will have to consider the costs and benefits associated with the project. Some depositors will not like the fact that they have to pay a fee to receive digital coins. If the S.E.C. finds this to be the case, it may take action against the celebrity.
The proposed regulation of digital money raises several issues for multiple government agencies. The Bank of England is responsible for systemic payment systems, the Financial Conduct Authority is the only economic regulator for other payment firms, and the Payment Systems Regulator is the economic regulator for the payments industry. For this reason, Her Majesty’s Treasury has proposed a stablecoin regulation model whereby the Bank would regulate systemic stablecoins while the FCA would regulate the conduct and protection of banks.
In the UK, a special-purpose digital coin is one that has a specific industry. For example, a jewelry-related digital coin would be called JNetCoin. A health-food restaurant-oriented digital coin is called AKM. The money generated by a particular business is usually a percentage of its value, and its transactions are entirely electronic. In China, the use of this currency is illegal, and therefore the country wants to develop a national payment system using this type of currency.
The S.E.C. refuses to decide if these digital coins are securities. They are not even allowed to regulate their own currency. Moreover, the S.E.C. threatens celebrities with violating the law. Its role is to regulate cryptocurrencies and digital coins. As long as the government does not take action against these companies, the S.E.C. is bound to protect the interests of its citizens. This regulation is not the last word on cryptocurrency.