Before the advent of Bitcoin, each currency was created and controlled by a central entity, in most cases, a bank. In the traditional fiduciary system, if you created your own money, it would be completely illegal. Bitcoin emerged in 2009 as the world’s first decentralized and borderless currency, but what state is the global regulation of Bitcoin in?
To this day, this concept presents many problems for tax authorities and legal agencies, as applying any framework to try to regulate the use of cryptocurrency appears to be extremely difficult. However, this has not stopped some countries from trying to restrict it.
To discuss the matter, Blockchain Academy Chile (BAC) through Cristóbal Pereira had the collaboration of an important actor within the Spanish-speaking crypto industry:
BeInCrypto as a media partner has covered the event in which various topics have been touched: the local and international legislation of Bitcoin as well as the most important points of the recently approved Bitcoin Law of El Salvador.
Cryptocurrencies have turned out to be quite elusive in the legal arena thanks to their novelty. For the most part, these are currencies not issued by central banks or official institutions, something that had not been seen to date within the legal and strict global economy.
In this regard, Cristóbal Pereira pointed out:
“It is important to have that point of view […] the experience that also means handling Bitcoin, a wallet, crypto assets. […] Many lawyers regulate regulatory issues without even having a wallet. […] Of course, as long as you do not have it in hand it is very difficult to explain it, if you cannot explain it it is because you do not understand it and, if you do not understand it, how are you going to work on it? How can you regulate it?
Etienne Luquet commenting on his personal experience, highlighted:
“[Algunos abogados] they don’t understand what they’re talking about. It’s funny because they speak from regulation but never speak from how it works. I have had lawyers sitting in front of me […] telling me that for example a judge can confiscate Bitcoin […] or that Bitcoin is somewhere and they will go looking for it. “
Due to the decentralized nature of Bitcoin, Trying to ban it is not really possible, the most that can be done is to threaten consequences for its use. This is because, according to Luquet:
“They analyze it by reading the law, but not from what ‘is below’ […] and sometimes the law doesn’t even apply. As an anecdote […] the current law in Mexico is literally made so that banks cannot have any type of exchanges and restrict […] but, at the same time, it leaves an open field for people to do ‘whatever they want’, it even ends up being counterproductive ”.
Ten years after the creation of Bitcoin, many countries have not yet established systems to regulate their use to prevent illegal transactions.
The case of El Salvador and other regulations
On June 9, the draft presented by the President of El Salvador Nayib Bukele was approved a few hours after it was proposed, thus becoming the first nation to recognize Bitcoin as legal tender.
When asked about global national regulations for Bitcoin, the director at Legal Lab noted:
“The computational code operates in a parallel way to any legal structure and / or any coercive device. […] What runs on a computer […] it is imposed on any type of regulation ”.
After evaluating the question about the “primary case”, how mining regulations, lack of energy and the Internet can affect Bitcoin (as in the case of China), Etienne Luquet emphasized:
“The technological part does not concern me so much, […] I believe that it can continue regardless of a centralized attack that the State and / or third parties may carry out. […] This has […] The primary regulatory effect with Bitcoin and similar cryptocurrencies is that, when the code is executed, it is properly impossible for the State to ask for “something back.”
For example, Cryptocurrencies are well received in most Hispanic countries, but they do not have specific legislation. The authorities of each country are treating them as use grows, and there is still a lot of adoption to go through.
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In this regard, when specifically addressing the issue of blockchain, Etienne Luquet points out:
“Bitcoin ends up being a justice system unto itself […] When you take it to the legal world [y existen precedentes] How the Bitcoin system operates ends up being irrelevant what the legal system says ”.
Referencing the news about the confiscation of BTC, Luquet stated:
“It is not so much getting you as a State in blockchain, right? [Hay muchas noticas] The FBI seizes Bitcoin or recovers Bitcoin. It’s not true, he doesn’t get it back, the exchanges give it to him. But he never had access to the keys [pero] How can the state interfere in this? […] At the moment when you want to get out of the traditional system […] the possibilities of regulation [anti lavado de dinero, KYC] Here we have the ‘regulatory key’, where the States can require you to comply with the rules and the tax issue ”.
The post An Approach to Local and International Bitcoin (BTC) Legislation was first seen on BeInCrypto.