Various governments are looking at cryptocurrency in different ways. On one side, there are countries like Venezuela who are coming up with their crypto tokens and on the other, there are emerging economies like India who are banning trading of Cryptocurrency and blockchain technology.

  • US Treasury

Different Countries have different approaches to Cryptocurrency 

In the present scenario, a lot of governments and financial institutions all over the world are looking to the United States to see what rules US federal authorities come up with when it comes to cryptocurrency. 

US Treasury head expresses confidence in blockchain and cryptocurrency 

The official policy of US towards crypto and blockchain has always been positive. This was again reiterated by Mr. Steven Terner Mnuchin, the head of US Department of Treasury. 

The United States treasury head recently stated that the US supports “correct regulation of the Cryptocurrency“, and that US authorities have no intention to ‘fight’ cryptocurrencies themselves.

This opinion on cryptocurrency was expressed by the Head of the Ministry of Finance of the United States, Mr. Steven Terner Mnuchin

Mr. Stephen Mnuchin

 Mr. Stephen Mnuchin also mentioned that the regulators are not against the use of cryptocurrencies in mutual settlements. Nevertheless, the authorities want to fight the financing of terrorism and speculation in the market.

“We do not oppose the cryptocurrency. We want them to be used correctly, “, he said. According to Stephen Mnuchin, US authorities understandably to do not want cryptocurrencies to be used for any illegal purposes.

The recent appointment of Mr. Larry Kudlow as an advisor to Donald Trump has also been a positive indication to cryptocurrency enthusiasts. 

Mr. Larry KudlowIn the environment of the conservatives, Larry Kudlow is known for his progressive views and his loyal attitude to the cryptocurrency. In particular, he advocated a reduction in the rate of capital gains tax. The US Internal Revenue Service considers the cryptocurrency as a property; therefore, tax reform to reduce the capital growth ratio should benefit the crypto-investors.

The rules for the payment of tax for traders in the United States came into effect from the beginning of this year.

Previously, the US had imposed a ban on the use of the cryptocurrency “petro“, since its original appearance was associated with a desire to bypass American sanctions. 

Venezuelan PresidentVenezuela nevertheless claims the increased interest in El Petro from citizens of the United States. 

Venezuelan President Nicolás Maduro himself called such actions of the US a crime against humanity. Some American media also built theories that Venezuela’s cryptocurrency could be used to circumvent sanctions by other countries, in particular, Russia. Ostensibly, this is the way the country conducts an experiment to introduce technologies of sovereign cryptocurrency.  

The confidence shown by the head of treasury of the US indicates that the future of cryptocurrency is bright and countries looking to ban cryptocurrency trading should reconsider their decisions.