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MyEtherWallet founder weighs in on the most crypto-friendly country

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With nations around the world each holding significantly different regulations, what is the most crypto-friendly country? Kosala Hemachandra, CEO and founder of MyEtherWallet, labeled the query as a tough one. 

“First we have to define what crypto-friendly means,” Hemachandra told Cointelegraph. “Some countries, like China, are looking at issuing government digital currencies, which would encourage swift adoption, but is not faithful to the decentralized spirit of crypto.”

China has proven itself as one of the less-crypto-friendly countries throughout the years, seen in various restrictions and bans. Throughout 2020, China has pushed significant efforts for its central bank digital currency, the digital yuan, although such an asset differs from the decentralized and open digital assets native to the crypto industry.

“In some places, especially those where fiat currencies are unstable or highly inflationary, regulations may be against crypto, but there is widespread use of client-side crypto solutions,” Hemachandra continued. Venezuela, for example, has suffered soaring inflation levels. In response, crypto assets have gained popularity in the region.

The U.S. has a unique situation in which each individual state carries different laws and regulations, while also under the purview of the federal government. “In the US, crypto-friendliness can vary significantly from state to state,” the MEW founder said. This concept often shows itself when U.S.-based crypto platforms release new products or services, launching in certain states with others following.

Crypto’s global landscape and ethos, however, also plays into the question. Hemachandra explained:

“Looking for the most crypto-friendly geographic region is not necessarily the most helpful framework, since every crypto service provider must and does aspire to a global usership. As companies in the space, what we can do is stay focused on making crypto safer and friendlier to use, so that adoption is encouraged and geographic boundaries matter less and less.”

The crypto space has grown in 2020, seen both in Bitcoin’s price rise and the decentralized finance boom. During this period in the blockchain industry’s evolution, the U.S. has continued to pursue legal enforcement of the technology.



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Regulation

New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.