Cryptocurrency & Law ⚖️
Digital assets have created as an alternative to the traditional fiat world, in which cryptography would allow any participants to transfer their funds directly, without any middle-man or a third party ✔️
💡 The ideas of decentralization and self-regulation led us to what we’ve now: the growth of the number of crypto users, the expansion of the sphere of influence and the adoption by institutional investors.
As you know, in each separate jurisdiction, the position on cryptocurrencies differs from each other. And here is a reasonable question arises: which countries have the conditions for a cryptocurrency paradise already formed?
FORSAGE has elaborated some country fact sheets for you. The first countries are: USA, Germany and France 👇
The position on cryptocurrencies of various levels of government and individual ministries differs:
➖ IRS Tax Office: Cryptocurrency — Property
➖ Securities and Exchange Commission (SEC): Securities
➖ Commodity Futures Trading Commission (CFTC): Commodity
The state of Wyoming is one of the most progressive in terms of cryptocurrency recognition. Last year cryptocurrencies were equated to money here. From July 1, 2020, a law allowing local insurance companies to invest in crypto assets came into force 💰
1st cryptobank 🏦 Avanti Bank & Trust with a federal license is also registered in Wyoming.
Recently the Miami City Commission supported the initiative of Mayor Francis Suarez and allowed paying salaries, taxes and fees in BTC.
Germany is considered the crypto capital of the EU. 2nd place in the world by the number of BTC nodes. The FRG authorities recognize that cryptocurrencies can be a means of exchange, they can be transferred, stored, and traded.
Yet Bitcoin and other crypto assets are not recognized as classic financial assets.
The Bundestag is now considering a bill that would allow every financial institution to store and trade cryptocurrencies 📜
Cryptocurrency income is taxed only if the crypto assets were purchased less than 1 year ago. Since January 2021, a rule of law has been in effect that allows each bank to sell, buy, and store cryptocurrencies. There is a special license of a financial service provider for crypto entrepreneurs.
VAT does not apply to mining and exchanging crypto for fiat 💱
Documents completed — no complaints.
Here cryptocurrencies are treated with caution. Users are allowed to use cryptocurrency, but digital money transactions are taxed as they are considered property 👀
There are no restrictions on mining and trading operations. Users are required to declare their cryptocurrency transactions. Otherwise — a fine of up to 750 Euros. The declaration is submitted once a year electronically 📨
Companies can obtain licenses for cryptocurrency activities, although this is not mandatory. In France, you can safely work with crypto if you do not violate the law.
To be continued