It has been 10 years since Satoshi Nakamoto’s legendary whitepaper was released. This landmark event introduced the world to cryptocurrencies and blockchain technologies, and Bitcoin was born.
Over the years, there has been a mixed reaction by governments of various countries. While some countries have embraced digital assets, others are focused towards curbing its use by the population.
The countries that have shown a positive stance towards cryptocurrencies have placed them under certain rules and regulations.
This article will provide information on the various cryptocurrency rules and regulations across the world.
Since 2013, cryptocurrencies are not considered a legal tender. They have been grouped as money transmitters by exchanges. The Internal Revenue Service (IRS) monitors cryptocurrencies and has provided tax related guidelines for the same. Various states have different regulations. In wake of cryptocurrency scams, the Securities and Exchange Commission (SEC) considers digital assets as security, hence the securities law apply to these crypto assets as well.
The country has provided authorization to cryptocurrency exchanges while the currency itself is not considered a legal tender. The currencies are taxed under the Canada Revenue Agency.
Singapore has also allowed cryptocurrency exchanges to operate, though the currencies are not considered as legal tenders. Bitcoins are treated as goods and are taxed accordingly by the Singapore’s tax authority.
Cryptocurrencies are legal in Australia and they are treated as property. Crypto exchanges are given legal status as well, they need to be registered with AUSTRAC. The currencies are treated as property and are taxed under capital gain tax.
The country has provided legal status to both cryptocurrencies and exchanges. The pre-requisite is that the exchange should be registered with the Financial Services Agency. Japan is renowned to be the country whose stand towards cryptocurrencies is the most progressive. Bitcoin and altcoins are considered as legal tender and come under the miscellaneous tax bracket.
Cryptocurrencies are not given a legal status though exchanges are legal. Exchanges dealing with cryptocurrencies are required to register with the FSS. The FSS closely monitors these exchanges. The transactions carried out on cryptocurrencies are not dubbed as financial assets nor as currencies, hence they are tax-free.
In China, both the tender and exchanges are illegal for cryptocurrencies. Back in 2013, the People’s Bank of China (PBOC) enforced a ban on all financial institutions that were handling Bitcoin transactions. In the year 2017, China also banner ICO and all types of domestic cryptocurrencies.
Cryptocurrencies are illegal in India and exchanges are also not allowed to operate. The government has been harsh on the public who hold digital currencies and it taxes them under the capital gain bracket.
The country does not provide a legal tender status to cryptocurrencies. Cryptocurrency exchanges are legal but are required to be registered with the FCA. Although there are no specific laws pertaining to cryptocurrencies, however, the profits made are subjected to capital gain tax.
The country allows trading of cryptocurrencies and also facilitates payment in certain cases. The exchanges are legal are regulated under the Swiss Federal Tax Administration. The SFTA considers cryptocurrencies as assets. The country is one of the few that has openly embraced cryptocurrencies and blockchain technology.