Mongolia is one of the recent countries that are viral in the crypto news section on our website – this time for bolstering its fintech sector and issuing the first digital currency license under its new payment system bill.
The East Asian country’s central bank has made the official news to introduce the cryptocurrency law which will go under the country’s recently-passed national payment system bill. As first reported by the state-owned press outlet Montsame, the Bank of Mongolia on Friday issued its first-ever digital currency license to Mobifinance – which is the fintech arm of Mobicom, the largest mobile phone provider in the country.
Зөвхөн Мобикомын хэрэглэгчид ашиглах боломжтой байсан Candy өдгөө Монгол орон даяар аль ч операторын хэрэглэгч ашиглах боломжтой болж Үндэсний төлбөрийн системд цоо шинэ төлбөрийн хэрэгсэл болон “мэндэлж” байна. https://t.co/fvKfeFze4s @CandyMGL @Mongolbank_mn pic.twitter.com/MAjrvn5Nwf
— MobiCom (@MobicomOfficial) September 28, 2018
The virtual currency owned by Mobicom is dubbed “Candy” and is now licensed as a state-approved financial instrument whose value is pegged to Mongolia’s first currency, the tugrik.
Previously, the mobile phone provider had only been authorized to issue the token to its mobile customers through a wallet app that is called Candy Pay. Using the app, customers could send funds to or from their bank, as well as pay bills, shop online at select retailers (within the app), and transfer funds to other users.
The CEO of Mobicom has confirmed the new bill that will be put to action beginning on October 1st, stating:
“As digital currencies have begun to circulate, ATMs and cards will become a thing of the past as well.”
According to the official report, the central bank officials said that at least one other company so far submitted an application for a cryptocurrency license issued under the new legislation.
Swiss Crypto Broker Bitcoin Suisse Applies For New Licenses
“We believe that in the long-term, more regulation will follow, as soon as the legislation catches up with the technological developments of the space. We believe that within this new regulatory environment, companies without the necessary licenses will have a limited ability to serve clients with the full spectrum of high quality, innovative crypto-financial products and solutions.”The announcement is hot in the altcoin news - where the company said that the preemptive licenses will expand the number of regulated services and products it can offer - as “more and more crypto assets and services fall under securities and banking law.” Currently, many best cryptocurrency news sites show that a securities dealer license would enable the company to trade crypto tokens that have been classified as securities by the financial regulator. As they said, this would include their own stablecoin, the Swiss Crypto Franc. In May this year, SIX (the Swiss national stock exchange group) announced that it was developing the CHF Stablecoin which will be pegged to the Swiss franc. The news now positively affects the Swiss crypto broker Bitcoin Suisse from many perspectives and creates a competition in the crypto environment in Switzerland. This is not to say that Swiss regulations are overly burdensome.
“The regulatory industry in Switzerland is very crypto-friendly. The Federal Council as well as the FINMA are pursuing a very constructive approach that fosters innovation in the long-term,” a company representative from the Swiss crypto broker concluded.
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India Will Ban Cryptocurrencies But Not The Digital Rupee
“No person shall mine, generate, hold, sell, deal in, issue, transfer dispose of or use cryptocurrency in the territory of India.’’Sethi described the new document as ‘’the proposed Banning of cryptocurrency and regulation of Official digital currency bill 2019.’’ He noted that the bill is not drafted yet completely and is tabled in the parliament to become an Act without modifications. The punishment for those who will go against the law includes prison sentences up to 10 years long. As noted, India will ban cryptocurrencies since now they are sitting in a grey area. Since last year, the banks prohibited serving the industry business with services involving cryptocurrencies and they also refused to provide services for exchanges which led to many companies leaving the country while others shut down. In the absence of the decent regulation, some remained hopeful and believed in a positive outcome in the long term as the opponents of the banking ban even sued the Reserve Bank of India over the decision. India still appears to go even further than China but it is still unclear how the authorities will enforce a ban on an entity which is not under their direct control. The issue comes in a very important time as the US government is starting to grip the realities of decentralized networks. During the press conference on Monday, the Treasury Secretary Steven Mnuchin noted his desires to combat the role of cryptocurrencies in illicit activities while noting the words of the US President Donald Trump who described bitcoin as being based on thin air as noted in the coming altcoin news.
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