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Regulations for cryptocurrencies have been a debated issue among experts. The need for regulation is becoming increasingly clear as blockchain technology is being applied to a number of industries. The lack of regulations around the technology due to its decentralized nature have left some critics stating it is too risky for customers. Additionally, governments around the world have been working for and against this new technology, however one side seems to be winning.
In April of 2017, the US Senate were shown to be working on a bill to promote the use of cryptocurrencies. As of this year, Japan has opened up to Bitcoin technology, while their neighbours, China, are struggling to stop cryptocurrency activity, meaning there may have to be a change in their course of action. The European Union have been combatting money laundering and the funding of terrorism from the use of cryptocurrencies, showing that governments across the world recognize cryptocurrency and blockchain technology as a powerful force.
Introducing regulation will provide a safety net for users and businesses alike. The ‘pump and dump’ effect — people manipulating the price of an asset to make a profit– has left many crypto markets highly volatile. Due to the lack of regulation, it is currently not illegal, which means the problem will persist. With enhanced regulation procedures, phenomena like the pump and dump would be illegal, stabilizing the affected cryptocurrencies considerably. Increased stability with reduced volatility will lead to an increase in the use of cryptocurrencies worldwide allowing the industry to prosper and develop into a truly global solution!
The ARK Ecosystem has been incorporated into France’s legal system, making it one of the first blockchain projects to assimilate within the European Union. Incorporating with SCIC which is a French acronym for “General Interest Co-operatives,” which allows users and companies alike to act together, governing an entity within a legal framework. Members of the SCIC are shareholders who are split into three parties: founders, advisors and employees, where one share is equal to one vote.
After a long process of evaluation, ARK concluded that France’s SCIC was the best candidate compared to the popular Swiss Foundation, a prominent option for blockchain projects. The SCIC hit the nail on the head for the ARK Ecosystem to be fully incorporated into the legal system. As an official SCIC, ARK can avoid legal ambiguities associated with taxation and capital gains.
According the law, a common interest benefits company is required to keep at least 52.5% of the profits towards legal reserves. However, ARK is going the extra mile by stating that there is no plan to distribute any profits to shareholders, meaning all profit will be put to use towards development, marketing and operations.
ARK’s accomplishments opens up a new road for cryptocurrency and blockchain technology, as being the EU’s first incorporated cryptocurrency SCIC will improve the blockchain technology’s reputation for skeptics.
ARK has already been approached by big players since its incorporation as a SCIC, including France’s AMF — the regulatory body for financial markets.
The ARK team has proudly fused blockchain technology with France, which will provide further opportunities to the industry in the near future.
Learn more about ARK at – http://ark.io/