Self-regulation in the blockchain and cryptocurrency industry is becoming the new norm. In Croatia, there is now a self-regulating body known as UBIK. This venture will also work toward regulating this nascent industry in the coming years.
UBIK Aims to Legitimize Cryptocurrency
Croatia is not a country most people associate with blockchain and cryptocurrency. To improve the situation, this self-regulating blockchain and cryptocurrency organization was created. UBIK aims to spread cryptocurrency and blockchain awareness first and foremost. There is also an effort toward regulating cryptocurrency in Croatia, although no further specifics were revealed at this time.
UBIK has officially registered with the government on February 13th. After receiving approval on the 17th, the “agency” officially began its operations. With over 70 members already joining UBIK, it has become evident there is a growing interest in cryptocurrency and blockchain technology.
The project’s creators also met with officials from the Central Office of Tax Administration. During that meeting, the topic of cryptocurrency taxation was discussed. For now, it seems as if the focus is on capital gains tax, although things can always change. Additionally, UBIK wants to focus on a regulatory framework for initial coin offerings, yet it is unclear how they plan to do so exactly.
Creating a more favorable environment for cryptocurrency and blockchain startups is not easy. So far, the Croatian government has not taken an official stance against these technologies. Instead, there appears to be a more level-headed approach. This self-regulating body appears to have the full support of the government as of right now.
Beware of the Many Scams
One thing that becomes evident is how most companies will need to register with the government. Moreover, the capital collected should come directly to the country as well. This will aid in creating and growing a database of industry experts. Collecting a list of companies active in the blockchain and cryptocurrency world will benefit the ecosystem in the long run. No further details were provided in the registration process itself at this time.
Efforts like these will prevent novice users from falling for scams. There is a mounting number of scams popping up in the cryptocurrency world. Especially where Ethereum and Litecoin are concerned, there is an increasing amount of projects which appear shady first and foremost. Only dealing with registered companies in Croatia will help create a more legitimate ecosystem in the long run.
We have seen government agencies crack down on cryptocurrency-related scams all over the world. The SEC is making a positive impact in this regard over the past few months. With UBIK also focusing on weeding out the illicit projects, things will only improve from here on out. Protecting consumers from financial harm is the top priority as of right now.