Austria's biggest Bitcoin broker, Bitpanda GmbH wants the world’s most popular cryptocurrency to treated similar to gold.
Europe’s billionaire bitcoin broker says that it will make things easier for the cryptocurrency industry if regulations imposed on bitcoin were similar to regulations that govern gold.
Gold Compliance Rules Will Help Bitcoin Grow
Bitcoin would benefit from compliance rules that would be easier to follow than those placed on stocks or bonds. Currently, cryptocurrency transactions in the European Union that are above $12,000 are subject to anti-money laundering rules. This means they face stricter standards that make it difficult to grow.
In a statement, Eric Demuth, Bitpanda co-Chief Executive Officer, said
Regulation provides us with more legitimacy. We've wanted to be regulated, but so far have been told that we cannot be.
The Austrian finance ministry has suggested a solution though. Earlier this year, it suggested that it would look into the trading rules for gold and derivatives as an inspiration for how to draw up regulatory rules for the cryptocurrency.
Bitcoin and cryptocurrencies in general have been a big problem for financial markets and regulators worldwide. Financial regulators have been working hard to try and regulate digital tokens. The main problem is that cryptocurrencies were specifically created to challenge traditional currencies, which has posed significant problems for financial regulators across the world.
Bitcoin Traders Will Be Happy To Embrace Gold Standards
Many governments already see gold as a potential way for criminals and tax cheaters to avoid paying taxes and other duties. However, they don't place special capital requirements on the precious metal. Banks also view gold as something similar to risk-free like cash or government bonds. Another advantage of dealing in gold is that the sale of gold is exempted from Value Added Tax in the European Union. Plus, gold traders don't have to follow a lot of the capital and conduct rules that govern the stocks and bonds market. Bitcoin traders would love to operate under such rules.
Austria is in a situation that balances itself between pro and anti-cryptocurrency factions. On one side, central bankers in Austria warn about how risky cryptocurrencies are and how it can be used in money laundering. Austrian based Bitpanda has continued is campaign for regulating bitcoin and has used its government connections to push for better regulation. Recently, Bitpanda has started selling Bitcoin vouchers via the state-owned postal service. It has also signed research deals with the Austrian Academy of Sciences and Technical University of Vienna.
