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Positive news was brought from Denmark. The Denmark’s Financial Supervisory Authority or the FSA issued a statement in some points similar to the warning published by the European Banking Authority (EBA).
Bitcoin, Denmark, EBA
The current stage of bitcoin development and strengthening of its position includes the necessity to undergo criticism from the authorities and governmental institutions. The overcoming of this hurdle definitely brings the virtual coin on the next level of progress; it tempers the system and its most active supporters ready to step into the era of blossom and the introduction of the coin as a widely accepted payment method.
Almost every day, during the previous month news from different countries emerged to provide information about their attitude towards the cryptocurrency. The biggest shock survived by bitcoin was suffered from China, indirectly banning it. On the opposite, rather positive news was brought from Denmark. The Denmark’s Financial Supervisory Authority or the FSA issued a statement in some points similar to the warning published by the European Banking Authority (EBA).
The FSA does not describe bitcoin and other coins (litecoin, zerocoin, altcoin and linden dollars) as full of value currency. It warns the users, especially companies and investors from the danger of crime on the internet, loss of money due to closing of services and bitcoin-related partners, and even the general problem – sudden drop of price of the coin (till 0). The comment presented to the audience also says that there is no law or rule of Denmark that might appeal to bitcoin. The financial regulations cannot prohibit or regulate the actions online in the virtual network. All possible actions with bitcoin will not be classified as issuance of electronic money, currency exchanges, brokerages or deposit services.
Also the FSA mentions that even being unregulated and not controlled by institutions or organization coins are acceptable as payment methods in some cases, but they need to be observed together with all circumstances and other provided options. The government understands that the current condition of cryptocurrencies has its roots in gambling and gaming currencies, as well as social networks. Still, if someone decided to open a business in the bitcoin branch – an ATM exchange or some similar project – there will be no need for a state approval and some kind of paper allowance to be issued.
The most important point to consider for both users and people willing to be engaged in a startup is the stage of cryptocurrency exchange towards the fiat money. This process is strongly bind to the taxes and rules or selling. Violation of corresponding rules might bring to crimes and money laundering.
However, review once again the position voiced by the FSA the statement can be evaluated as success for the whole environment. Fair users and merchants have nothing to be afraid of as bitcoin is not prohibited, it allows to monitor the basic parameters of the market – the price, the experience and reliability of the service company, the trustworthiness of the partner, but not the dreads that might follow from the governmental side.
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