There is no rocket science to acknowledge the fact that the cryptocurrency market has been on trend for quite some time now and it seems that the hype is not going to go anywhere anytime soon. The main reason behind the hype was the massive price rise of Bitcoin in late 2017. Everybody on the internet, as well as all the traders in other markets, showed an immense amount of interest in trading with cryptocurrency tokens (especially, Bitcoins). Apart from all the hype, it was also the government of different countries who reacted differently. Their reaction certainly affected quite a lot of movement in the prices of cryptocurrencies.
The reason for that can be attributed to market sentiments. If a government is dead against cryptocurrencies, the citizens of that country become a bit skeptical about their investment in the crypto market. However, if the government is in favor, we get to see a huge investment in crypto market through their domestic/local exchange which eventually results in the expansion of market capitalization of many cryptocurrencies and the crypto market as a whole.
So here is a list of different countries that have different opinions on Bitcoin and cryptocurrencies. Have a look at them.
Cryptocurrency is absolutely legal in America but they also have stricter tax laws on them. In order to trade in crypto market, a trader in American has to comply with the guidelines provided in the AML Laws (Anti Money Laundering Laws).
America is home to some of the world's largest Bitcoin companies. This is what makes dealing with Bitcoins very easy in the country. Any payment method such as credit card, cash or bank transfer can be used by a trader to buy Bitcoins. Under the United States law, Bitcoin is of course treated as a cryptocurrency and also treated as a security. A lot of crypto instruments are covered by the pursuing legislative/regulatory efforts in many states within the US. This clearly proves that the country is very serious about the cryptocurrency and sees the potential of Bitcoin with open minds. However, apart from the regulations, it is the President of the United States of America, Donald J Trump who is against the use of Bitcoin. But till now, there has been no ban on the use of cryptocurrencies in America.
Coinbase is one of the best exchanges from where you can buy Bitcoins if you are a resident of The United States of America.
It was back in the year 2017 when the Australian government declared Bitcoins and cryptocurrencies as absolutely legal. Legalizing them meant that anybody can buy it without worrying about the law but taxes were also imposed on them. According to Tax Office in Australia, the Capital Gains Tax (CGT) is the primary tax that cryptocurrency traders have to pay in Australia. The government also declared that the cryptocurrencies should be treated as property and hence, the taxes should be applied to them.
Registering with AUSTRAC is very important for all the cryptocurrency exchanges in Australia. The country has overall been absolutely progressive in its implementation of the regulations put on cryptocurrency.
All the cryptocurrency exchange businesses which are happening around Japan are regulated by the Payment Services Act. It is legal in Japan but is limited to property values only and are supposed to be stored electronically on any electronic device. However, the Payment Services Act clearly states that it is not a legal tender.
Japan has been more open to cryptocurrencies and blockchain as compared to other countries in the world. It is true that some high profile heists did happen in the past but that did not affect the decision of the government. In fact, Bitcoin has been treated as a legal form of payment in the country ever since April 2017.
There are a total of 11 companies as registered cryptocurrency exchange operators, as recognized by Japan's Financial Services Agency.
China has been a big name in the world of cryptocurrency because of the roller-coaster rides the country takes for its crypto traders. One such was the banning of many ICOs in mid-2017.
On 5th December 2013, the People's Bank Of China regulated Bitcoin by prohibiting Financial Institutions from handling cryptocurrencies. In the year 2017, the Chinese government cracked down on the practice of fundraising using ICOs. Many websites related to ICO were banned by the country. It was reported that a total of 173 platforms were closed by July 2018.
The Central Bank Of China a.k.a the People's Bank of China that runs the whole monetary policy for the country announced that it is planning to launch its own cryptocurrency which will be replacing the physical Chinese Yuan currently in circulation in the country. By launching its own cryptocurrency, China has shown its interest in this field. However, not much can be said about their intentions towards the investment of private players into their market.
South Korea is often known as a society which is very technology savvy. One can expect the country to be one of the mass adopters of Bitcoins and other cryptocurrencies. This is actually true. In fact, the South Korean Ministry of Startups and SMEs on July 24, 2019, announced that Busan, the second-largest city in South Korea will host a wide range of blockchain offering in the field of finance, tourism and public safety.
Korbit is the most famous exchange in South Korea and people can buy and sell Bitcoins using it.
South Korea's cryptocurrency taxation is considered as a grey area mainly because it is neither considered as currency by the government nor as a financial asset. To push the market of cryptocurrencies and encourage its fellow citizens, a total of 11 regulations have been lifted off by the South Korean government.
The cryptocurrencies in Canada are not considered as a legal tender but is still being used in the country. Canada rules and tax laws are applicable to all the cryptocurrency transactions that are being carried out. One of the taxes that covers the cryptocurrency transaction in Canda is the Income Tax Act. Cryptocurrency in Canda is considered as a commodity and paying for goods or services would be treated as a barter transaction according to the Canada Revenue Agency.
Coinbase is the most used digital currency exchange in Canada using which people buy Bitcoins and other cryptocurrencies.
The only legislative action that has been taken so far on ryptocurrencies and Bitcoin in France are the two ordinances on blockchain technology. Undoubtedly, the cryptocurrency is largely regulated in France but the French government's new Bill is expected to allow all the firms to issue new cryptocurrencies as well as trade the existing ones.
French Finance minister Bruno Le Maire, some days ago, said that the country will be pushing for the European Union adopting a regulatory framework on all cryptocurrencies including Bitcoin. It is definitely a good move while ensuring that the country can receive taxes from the incomes of cryptocurrency traders.
When it comes to Philippines, contrary to the popular belief, the cryptocurrency regulatory framework in this country is very advanced as compared to many other economies of the world. As early as 2017, the Bangko Sentral ng Pilipinas (central bank) announced that they will be registering Virtual Currency or Crypto exchanges under BSP Circular no. 944, which classifies companies that buy or sell Bitcoin and other cryptocurrencies as money transfer and foreign exchange businesses. Today, 13 companies have been given this license, with many more applying.
The Philippines also has an active SEC that has published draft rules for Digital Asset Offerings and separately, Digital Asset Exchanges (orderbook exchanges) as well. They have also actively pursued punitive action against crypto scams and ponzi schemes. In a special economic zone in the Philippines called Cagayan Economic one Authority, off-shore crypto businesses have been given licenses to operate and register, already totaling 38 exchanges registered as of this writing.
The Philippine Senate recently called a hearing on cryptocurrencies and digital assets under proposed Senate Bill no. 1041 or the Digital Asset Act of 2019. This bill, along with Senate resolution no. 129, aims to recognize digital assets and help with classifying them as to which government agencies can enforce regulations and its functions.
These were the takes of different countries on Bitcoin and cryptocurrency as a whole. Some countries have passed regulations against the bitcoin while some in favor of it. There is no denying the fact that the regulations have a big role to play in the actual mass adoption of bitcoins and cryptocurrencies. The blockchain technology behind the cryptocurrency has been acknowledged by a lot of governments around the globe and it is just a matter of time that they realize the true potential of cryptocurrencies as well.
written by Devashish