Which country has the lowest tax rate and which country has the strictest regulation? An Overview of Global Blockchain Policies

Biancoin, 11.23- 2018 is called the first year of the blockchain era. As the end of the year is approaching, BlockData, a Chinese blockchain data service platform provider, analyzed the attitudes of countries policies in Initial coins offering (ICO) regulation, cryptocurrency trading tax rates, central bank digital currency issuance and intentions.

As a result, 57% of countries have a neutral/positive opinion towards ICOs, with a strong wait-and-see attitude; 18% of countries strictly prohibit ICO; and countries that allow ICOs account for 16%. For the project sides, there are more ICO opportunities in Asia and Europe.

Japan has the highest cryptocurrency transaction rate in the world, reaching 55%, and cryptocurrency tradings in 6 countries are exempt from tax or conditional tax exemption.

5 countries have issued national digital currency, while 16 countries have distribution intentions.

1.57% Countries Hold Neutral Attitute towards ICO Regulation

The BlockData platform counted that 44 countries have issued ICO regulatory policies, but the differences are obvious.

Global ICO regulatory attitude

According to the permissible, negative, neutral/positive, and prohibited classification, 57% countries hold the neutral or positive attitude, and 18% countries banned the ICO projects, which means that most countries are still holding a wait-and-see attitude about ICO.

In terms of the number of issued policies on the six continents, Europe and Asia issued the most ICO regulatory policies, which is partly due to the large number of countries in these two continents. On the other hand, countries in the two areas pay more attention to ICO and draft stricter regulations.

The BlockData has found that the countries that allow an ICO are mainly in Asia (two) and Europe (four), making it easier for the project side to find more opportunities in these two areas.

Japan’s cryptocurrency trading tax rate is 55 percent, the highest in the world

As of now, many countries have introduced cryptocurrency tax policies or incorporated cryptocurrency revenue into the original tax system.

Per BlockData’s report, 25 countries have released tax policies with various rates.

The country with the highest tax rate is Japan, with a percentage of 55%, followed by Canada and the United Kingdom, with a tax rate of 50% and 45% respectively.

Countries with tax exemptions or conditional tax exemptions are Singapore, the United Kingdom, Germany, Malta, Belarus, and Norway.

Besides, Switzerland will check the tax rate accordingly at the end of each year. The tax rate in Australia has been changing in the past two years. At present, Kenya and New Zealand have the willingness to collect taxes, and the tax rate has not been determined.

According to the analysis of the blockdata, although the tax rates vary from country to country, the enterprises can change their registration country to evade the tax. For most retail investors, there is no condition for trading in countries with low tax rates.

Five countries have issued national digital currency

In the past two years, the issuance of central bank digital currency has become a hot topic among some national central Banks.

The BlockData data platform has detected that 21 countries have issued or have intentions to issue CBDCs. Among them, five countries have issued CBDC, most notably Venezuela, and the other four countries are Thailand, Ecuador, Tunisia and Senegal.

Besides, sixteen countries have the intention to issue CBDC or are under discussion.

The BlockData found that countries with severe inflation and underdevelopment have a stronger intention or willingness to issue central bank digital currency in order to save the collapsing legal currency. Developed countries have no motivation to issue national digital currency, while the United States, Canada and North America have no intention to issue national digital currency.

To conclude, the BlockData believes that in the future, issuing CBDC will be an only tentative behavior of some countries, and it will be just a direction of exploration of blockchain technology, and will not become a popular trend, nor will it replace the status of fiat currency of various countries.