It's been more than ten years since cryptocurrencies entered the market, but they still have not seen the traction they deserve or was expected of Satoshi Nakamoto's amazing gift to the world… and that's partly because there are many nations that consider tokens as an illegal currency. Cryptocurrencies have reached the international level with the help of the blockchain network, but it still needs credibility and acceptance to be used in the government institutions. The trade market and the financial standing of all the nations keep changing and this makes cryptocurrency complex due to regulations. Let’s take a look at what different legislatures has to say.
- The United States
If you are thinking that Americans are open-minded and will easily accept the concept of cryptocurrencies, then you are certainly mistaken. The United States is one of the main countries that oppose the use of cryptocurrencies. It is very hard to find legal crypto traders in the United States. The whole of America is divided into several small factions. Every state has its own law for handling the cryptocurrencies. For instance, the US FinCen considers cryptocurrencies as the illegal tender and does not encourage Americans to trade in cryptocurrencies.
Even Canada considers the cryptocurrencies as an illegal tender but ironically accept cryptocurrency exchanges and they are legal in the country. Canada has been proactive with its cryptocurrencies dealings by making sure that people are not using cryptocurrencies as a national currency.. Canada has taken some strict steps to make sure that the cryptocurrency is kept out of the central financial system. Recently, in 2018, Canada has changed its terms and condition for the cryptocurrency exchanges.
Singapore also does not consider the cryptocurrency as a legal trade but it's not as strict as the North Americans above. It has taken a friendlier approach to tackle fraudulent activity. The state of Singapore has a different saying and have a different understanding of the cryptocurrency. However, whenever, cryptocurrency exchanges are considered a legal deal. Singapore does not consider the cryptocurrency as legal tender, but still consider the Bitcoins and the other cryptocurrencies as a commodity to ensure they will be able to apply goods tax on the cryptocurrency trade.
Australia is one of the countries that consider the cryptocurrency as a legal entity and everything related to cryptocurrencies are legal. Australia was clear with its intention with handling the cryptocurrencies as legal tenders and even emphasize that Bitcoin is considered are property and hence, Bitcoin is liable with CGT (Capital Gain Tax.) The Australian government has been proactive with the implementation of several taxes on tokens, but recently it took a major decision of taking the cryptocurrency out of GST and putting it under the jurisdiction of the CGT.
India is also one of the countries that are strongly against the use of cryptocurrency, yet again, cryptocurrency exchanges are legal and these opposing policies have made it difficult for the Indian to regulate cryptocurrencies in India. Essentially the Royal Bank of India supports the use of blockchain but not cryptocurrencies and has shut down many startups in the country. In spite of declaring the cryptocurrency exchanges legal in India, the Indian government is yet to reach a concrete decision related to the taxation on cryptocurrency-derived profits. There are several high ranking government official demands that the Indian cryptocurrency traders must also fall under the taxation jurisdictions.
- Final Thoughts
There are several countries and they all have their own believes regarding the cryptocurrency trade. Some have taken a liking to the cryptocurrency, while some are still confused about its implementation. As of now, the current situation is balanced. And only the future knows how cryptocurrency will perform. If you are also interested in the cryptocurrency investment, you can also be a part of the cryptocurrency trade market with the help of the https://bitcoins-union.com.
Also published on Medium.
- Site Reliability Engineer (SRE), Trading Infrastructure at DRW (Chicago, IL, USA) - 16 July 2020
- Technical Recruiter at AxiomZen (Vancouver, BC, Canada) - 16 July 2020
- Public Sector Account Manager – France - 16 July 2020