When cryptocurrencies started to spread all over the world, this blockchain-based system was claimed as a new age of the financial sphere. Experts said it will lead the market because of its transparency, reliability, and independence from any state structures. It’s even more curious that a lot of governments are interested in the technology nowadays. Some of them are using it to simplify citizens’ life, some trying to cheat the international society. So, what is the news?

India & China. Cryptocurrencies, but not exactly

In India, cryptocurrencies are still a difficult subject. On one hand, they are forbidden in the country. In April 2018 came into effect a circular from India’s central bank that prohibits services to all cryptocurrency companies. On the other hand, the government is examining how can tokens be used in financial transactions. India has a committee that is studying FinTech and working on a set of regulations. Theoretically, these regulations would allow cryptocurrencies in the future. But what about nowadays? There is a trick - crypto tokens cannot replace the current money, but they can represent it. Basically, the Indian government is going to sell tokens for rupees. The first step is to examine the system on the public sector and replace metro cards with tokens. DEA (Department of Economic Affairs) Secretary Subhash Chandra Garg said a client will be able to buy a token for physical money and save it as a code on any gadget. He also doesn't believe the cryptocurrencies to be currencies at all, but there can be other ways to mainstream the technology in India.  Another country where cryptocurrencies are strictly forbidden is China. Experts believe this situation won’t change in the nearest future. But inside the country, there are some companies that find a way to use crypto tokens without references to traditional money. The local social network Tianya that has over 130 millions of users launched recently their own cryptocurrency. The Tianya Token (TYT) is used only within the community for exchange and payments. It is announced that the total numbers of tokens is 90 billion. Users will get 80% of TYT as a kind of reward for content creation. Other 20% will be held for operation teams.

The Bahamas, Malta, and their crypto future

The Bahamas went further than India or China. The country is going to experiment with digital currencies on the central bank level. But this move dictated not only by an interest in the modern financial technologies but by the need, too. There are over 700 islands and cays in the country, and transportation is quite problematic and expensive. To provide financial services on the archipelago, many commercial banks need to travel long distances. This extra expenses lead to downsizing of banks, and they are leaving communities without vital banking services. The Bahamas’ Deputy Prime Minister K. Peter Turnquest believes, the central digital currency will “bring the banking to unbanked”. He said the new technologies can make life in the country more convenient. Also, The Bahamas are going to give the green light to blockchain technology in general. Turnquest said the government is looking for ways to use it in business licenses, passports, national insurance, etc. The official thinks blockchain will help to make the country more efficient and root out corruption.  Malta, another island state, made a big step to cryptocurrencies. The country has already become a very popular place for cryptocurrency businesses, and many new startups prefer to launch on the island. The reason is in supportive government that is working on a Virtual Currency Act. In the nearest future, the Act will regulate all financial operation based on blockchain. The Parliamentary Secretary for financial services in Malta Silvio Schembri supports new industry and said, it can create thousands of new jobs. Also, he believes the Act will help to develop new economic sectors, for example, chain management and FinTech. These statements already have the result. Binance, one of the largest cryptocurrency exchange platforms, has already announced entering the country in March. Similarly, another big platform from Hong Kong, will expand to Malta and help the government with the regulatory framework. 

Iran, Russia, and some shifty ideas

Tehran and Moscow are considering cryptocurrencies as a way to deal with the financial crisis. But that won’t be a way of developing new economic sectors like in Malta’s case. Iran and Russia are looking for new possibilities to avoid US sanctions. In 2012, Iran had serious financial loses after banking blackout from global payments rail SWIFT. This sanction lasted four years until a nuclear accord was signed by Iran and six leading countries. And this accord was overturned by President Donald Trump in May 2018. Iran’s currency plunged to historic lows against the US dollar. So, the country is looking for the ways to reduce their dependence on the global interbank system. It is known, Iran suggested cryptocurrency pact to Russia. Moscow also got international sanctions after military intervention in Ukraine. Mohammad Reza Pourebrahimi, the head of the Iranian parliamentary economic commission, said Russia shares that ideas. He believes they will be the first countries that use cryptocurrency in the exchange of goods.

And what about Ukraine?

After some period of silence, Ukraine starts to talk about legalization of cryptocurrencies. A part of the Ukrainian Financial Stability Council supported a new regulatory concept. According to this concept, tokens should be a fully legitimate financial instrument as well as coins.  A number of government institutions members are now the base of regulatory concept’s body. They present The Ministry of Finance, National Security, National Financial Services Market Commission, etc. All this process is a big step forward for cryptocurrency legalization and for stabilizing the economy of the country, too. Previously, Cointelegraph reported that Ukraine was working on a new legislation that would develop a “free and transparent” digital asset market in Ukraine. In Kyiv, authorities are going to allow bitcoin in public transport payment this summer. One of the sources said: "This is a part of the new transportation program. We must keep up with the times and leave step by step a “sovok” in the past as well as paper tickets. With this, we will save a lot of wood and pave a way to the country's ecological safety”.