Steemit Crypto Academy Season 4 Beginners' course - Homework Post for Task 7: DEX, CEX, popular exchanges and trading cryptos

Cryptocurrencies are not regulated by any central authority, but they are still subject to regulation in most countries. Exchanges can also be regulated in some countries, but this is dependent on the exchange's activity - if it's not exchanging fiat currencies for cryptocurrency (and vice versa), then it is likely unregulated.
The problem with regulating cryptocurrencies and exchanges alike is that there is no one governing force in charge of them - making them very difficult to regulate correctly. Blockchain technology also makes any type of regulation-related tampering or censoring virtually impossible. This is the reason why most exchanges operate outside regulatory jurisdictions, which makes them much more difficult to regulate.
Some exchanges will offer their clients the ability to trade in US Dollars, Euro or other fiat currencies for Bitcoin, Ethereum or other cryptocurrencies. While this may seem like a convenient service for those looking to trade cryptocurrencies easily, it's not without its drawbacks. Exchanges that do this are essentially offering their services as money transmitters and should be regulated just like other marketplaces where you can buy goods and services under certain conditions. This means that any type of financial crime that occurs on these exchanges should be considered just as serious as if it takes place on a regular exchange or marketplace where you are buying goods or services directly from the seller.

All the money in the world pales in comparison to blockchain innovation. For this reason, cryptocurrencies like bitcoins are now slowly coming under regulation. Many countries want to know how to properly regulate cryptocurrencies, and take into account their taxation policies, capital gains/losses, and circulation of value between different currencies.

In 2014, countries like China and Japan banned trading of bitcoins. Such action came from the fear that bitcoins' dominance over the market might lead to a catastrophic collapse of prices, which would leave people with a huge loss. However, this fear was soon lifted after bitcoin became popular in 2013, and its value began to once again climb.

In middle of 2016, former US Federal Reserve chairman Ben Bernanke published a paper titled 'Cryptocurrencies: What they are, how they work and why they matter'. In this paper Bernanke explained that blockchain technology can be used to prevent money laundering and terrorist financing. This is because when you exchange physical bills for virtual coins on the blockchain network, it is easy to trace it back to an identity.

In 2016, the Bank of England said that bitcoin could be a good way to store value.

In early 2017, a group of lawmakers from Japan's parliament held a meeting with the Financial Services Agency, the country's financial watchdog. The agency was interested in how to regulate cryptocurrencies as they come under 'financial instruments' and 'securities', which are considered as property under Japanese laws.

In March 2017, China banned ICOs or Initial Coin Offerings. In June 2017, South Korea issued a set of rules for ICOs by regulating exchanges and applying capital gains tax on them. In August 2017, SEC Chairman Jay Clayton said that digital tokens may not be securities because they lack clear legal boundaries between security and utility tokens.

Some countries that have regulated crypto currencies are: