Cryptocurrencies in different countries.

Some countries embrace crypto as they fear they might lag in adoption while some want to adopt it but are worried as to what if Bitcoin fails.

Different countries have different opinions on Bitcoin and other cryptocurrencies. Some say it is a threat to their national currency and stability, while some openly embrace the fundamentals.

There are more than 200 different countries in the world, all of them are at different stages of development, and their governments often express a fundamentally different attitude towards cryptocurrencies. Bitcoin era is a new phenomenon that appeared only nine years ago, in 2009. Most governments have not yet developed general or private regulation, but there are already those who have imposed a strict ban on digital money and those who have legalized it in its entirety. Let’s take a closer look at the attitude towards cryptocurrencies in different parts of the world.

Australia and Oceania

Australia

Cryptocurrencies have been recognised here as monetary units since 2016. Locals can pay their bills in Bitcoin, and the local city of Brisbane has an airport where all terminals accept digital money. Visitors can use Bitcoin, Ethereum, Litecoin or Dash. The country has a TravelByBit payment system, which is aimed at attracting cryptocurrency tourists. Transactions with cryptocurrencies are exempt from value-added tax.

Bitcoin and Ethereum can be purchased in newsstands all over the country. It is enough to scan a QR code, the funds will be credited to the user’s electronic wallet, the minimum size of the transaction — 50 Australian dollars or about $40. The country has decided on the rules of ICO, they are regulated depending on the nature of tokens. Companies need to get special licenses and permissions from the government in case if tokens don’t fall under the definition of financial products, investors will not be under the protection of the state.

The Marshall Islands

The country plans to issue the national cryptocurrency Sovereign as the second payment instrument after its fiat currency, the U.S. dollar. In September 2018, the IMF made a statement advising the Pacific state to refrain from issuing its altcoin, otherwise the country’s national bank may lose its correspondent relations with the U.S.

New Zealand

The government has officially equated cryptocurrencies with securities, and all transactions with them are regulated by the current legislation.

Papua New Guinea

The country’s central bank is developing blockchain solutions for residents who do not have access to banking services, i.e. 85% of the population. Cryptocurrency is gaining popularity among the population, and the Digital Commerce Association is being established.

Samoa

In September 2018, Samoa’s central bank said that cryptocurrency companies would be regulated as financial institutions. Cryptocurrencies do not have the status of a means of payment.

Asia

India

The Reserve Bank of India (RBI) has banned financial institutions from working with companies that are linked by cryptocurrencies, so local banks have stopped working with digital money trading platforms. This has led to one of the country’s largest stock exchanges, Zebpay, suspending operations and now operating only as an e-wallet.

The cryptocurrencies themselves are not banned, the government is in the process of developing loyal legislation that will lead to the lifting of the RBI ban.

China

In September 2017, a group of Chinese regulators banned ICO. The placement of virtual coins was found to be unlicensed, and most of the projects were found to be fraudulent. Cryptocurrency exchanges in China were found to be illegal.

Four of the world’s largest mining pools are located in China: AntPool, BTC. com, F2Pool and BW. COM. In total, more than 72% of the Bitcoin’s hashrate is in China, because the country has cheap electricity.

Republic of Korea

Last September, the government banned ICO, but it has a generally positive attitude towards cryptocurrencies. The authorities are introducing measures to regulate the market in order to make it as safe as possible for investors and not to hinder the development of the industry as a whole.

Japan

The country has legalized digital money and accepts it for payment in large stores. In the spring of 2018, a major inspection of cryptocurrency exchanges began, and they must now be licensed and security measures strengthened after hackers stole more than $520 million from the Coincheck site in January 2018.

Africa

Egypt

The government attributes the ban on the use of digital money to the fact that cryptocurrencies are not allowed by Islam, and Bitcoin era is compared to fraud and deception of gullible users because the coin is not controlled by anyone.

Morocco

The country has introduced a strict ban on cryptocurrencies. The Moroccan authorities are confident that digital money is being used for money laundering and other criminal purposes.

Tunisia

In 2015. Tunisia converted its eDinar e-government currency to blockchain. At the same time, citizens will not be able to work on the Bithumb exchange, as Tunisia was blacklisted from 11 countries that do not comply with AML and KYC requirements.

South Africa

The South African Revenue Authority has introduced the Cryptocurrency Tax Bill, which does not consider digital money to be a means of payment, and considers the new asset as an intangible asset that is subject to income tax. However, any action with digital money is not subject to VAT.

South America

Argentina

Since 22 May 2018, the Argentinean Banco Masventas has been using Bitcoin as an alternative to the Swift system. The bank’s clients do not work directly with cryptocurrencies. There is no clear regulation of the crypto market in the country, but it is one of the G20 members, which may introduce general rules of control in this area in the future. In May 2018, representatives of the Odyssey Group said they plan to install 4,000 ATMs with digital money support in the country. In addition to Bitcoin, they will be able to work with Ethereum and Litecoin. In September, the Central Bank of the country announced that it was ready to convert part of its reserves in cryptocurrencies.

Brazil

The Brazilian Treasury has allowed investment funds to invest in cryptocurrencies through derivatives and foreign funds, but they are prohibited from doing so directly. Digital money is not considered a financial asset, so the Central Bank advised users not to work with it. At the same time, the Dash blockchain project team reported at the end of 2017 that 4,000 stores in the country accept this altcoin for payment.

Venezuela

The country launched its own cryptocurrency, El Petro, and in March 2018 the local Bolivar fiat currency was denominated and pegged to the price of altcoin. It is backed by 5 billion barrels of oil from the Ayacucho field in the Orinoco oil belt.

The cost of Petro is equal to the price of one barrel of oil. Now the government is preparing to launch another currency — Petro Gold, the price of which will be pegged to gold. The country has a mining incentive program for students, the unemployed, single mothers and so on. Citizens are urged to build farms for digital money extraction, 24 farms are being built at the expense of the state. In February 2018, the government opened a free school where citizens are taught the basics of cryptocurrency.

Colombia

Cryptocurrencies are not regulated in Colombia, President Ivan Dooké said in September 2018 that digital money can solve many problems. He invited cryptocurrency start-ups to come to South America. Dooké proposed that digital money transactions be abolished for up to six years. Users reacted ambiguously to this statement, calling the government corrupt, and many citizens stressed that the president had not kept a single election promise.

North America

Bahamas

The country’s central bank announced the launch of an experimental digital currency for small islands where commercial banks do not operate. The Bahamas has introduced a system of authentication of certificates and educational documents based on blockchain. The islands sell real estate for Bitcoin, but the legal status is unclear.

Canada

Cryptocurrencies are not prohibited in the country, they can be used to pay for goods or services, but the government does not consider them legal tender. Transactions involving digital money are subject to income tax. The use of cryptocurrencies is considered a barter transaction. When filing a tax return, it is necessary to specify all your income and losses from working with digital money.

In July 2018, the government announced plans to regulate the market, and all companies that trade in cryptocurrencies will be controlled by the government, like other financial firms, are required to fight money laundering and comply with KYC regulations.

Mexico

In March 2018, the government adopted a cryptocurrency bill. Digital money is not a means of payment, and Bitcoin is considered a commodity, not a currency. The authorities warn the public about the risks associated with token placement projects.

USA

There is limited regulation of cryptocurrencies. They are considered assets, so digital money is subject to capital gains tax and personal income tax. When dealing with a new type of asset, users are required to comply with anti-money laundering regulations and KYC requirements.

ICO tokens are regulated depending on their nature, if they possess the properties of securities, are regulated according to the relevant requirements. Different states have different laws regarding cryptocurrencies — in New York, startups and exchanges need to obtain a BitLicense license to operate, which forced many companies to leave the state because of strict requirements.

Antigua and Barbuda

The country’s authorities have amended the law and will now sell citizenship for 12 BTC to attract investors. The government of Antigua and Barbuda plans to make Bitcoin a legitimate mean of payment. In April, it was reported that the national cryptoexchange will soon be launched here.

Barbados

It is not known what the status of cryptocurrencies is in this small country, but in September 2018 the government began to create a unified digital payment system. The central bank is preparing to launch a digital version of the dollar that can be used in electronic financial transactions.

Europe

Great Britain

There is no specific legal regulation in the country, but the government plans to develop rules. Bitcoin has been recognized as a voucher, which means that all cryptocurrency transactions should be subject to value added tax, and some local traders have already received invoices from the government to pay taxes on cryptocurrency transactions.

The Bank of England is not so optimistic about digital money, and in March 2018 the head of the agency, Mark Carney, noted the volatility of the cryptocurrencies and called for strict regulation of the industry. He added that Bitcoin era provides no intrinsic value or external support for cryptocurrency. However, the British parliament is carefully studying the industry and looking for ways to regulate the market without harming its development.

Germany

Bitcoin is recognized as a means of payment in terms of taxes. Digital money purchases will not be subject to capital flight tax. Users who will pay for goods or services with cryptocurrencies will have to pay VAT.

Italy

Cryptocurrency transactions in Italy are not subject to VAT if the coins have been exchanged for fiat or vice versa. Firms that are linked to cryptocurrencies must be registered. The government emphasizes that it does not support a new type of asset, but the legislation is necessary to combat money laundering and terrorism financing.

In September 2018, the government published a draft law to tax the incremental value of Bitcoin in the event of an increase in its exchange rate. Legal entities that own digital money will have to file financial statements once a year, assessing the current exchange rate of cryptocurrency. The tax will be calculated based on the difference between the current and last year’s rate. This document contradicts the decision of the European Court of Justice, according to which transactions with cryptocurrencies should be subject to VAT.

Russia

The Government of the Russian Federation is developing cryptocurrency legislation, and three draft laws have been adopted in the first reading in the State Duma and are now being prepared for the second reading, which is due to take place in autumn. The words “cryptocurrency” and “mining” have been removed. Now the industry has a mixed attitude towards documents, and the Russian Association of the Cryptographic Industry and blockchain believe that they need to be improved, as incorrect or too strict regulation may lead to the fact that business will start to move to jurisdictions with more loyal legislation.

Austria

The government plans to regulate the digital money industry in accordance with existing rules concerning trade in financial products such as gold and derivatives. All participants of any cryptocurrency transactions will be identified, the information on transactions over $10 000 should be accessible to financial intelligence of Austria. ICO organizers are required to obtain permission from the government to conduct a fundraising campaign and submit “financial prospectuses”. Cryptocurrency transactions are proposed to be subject to VAT.

Despite the lack of regulation, Bitcoin, Ethereum, Litecoin, IOTA, Ripple, Dash, Komodo and Bitcoin Cash can be purchased at more than 400 post offices across the country. All thanks to the initiative of Bitpanda. Purchases are available in three options: 50, 100 and 500 euros.

Belarus

In December 2017, President Alexander Lukashenko signed a decree “On the development of the digital economy,” while on March 28, 2018, the country fully legalized mining, blockchain, cryptocurrency exchanges and transactions using digital money. Actions with the cryptocurrency do not need to be declared, and transactions are not taxed until 2023.

Residents of the High Technology Park (HTP), a special economic zone, can create and distribute their own tokens. Foreigners who have an agreement with a HTP resident can enter Belarus without a visa and work without a special permit.

Belgium

There is no specific regulation of the digital money market in the country, and the government believes that the EU should control the industry together. However, the local financial regulator is active and blacklisting companies that have been identified as fraudulent. It was last updated on September 4, 2018.

As you can see, more and more developed countries are legalizing crypto. You can already pay taxes or buy basic goods with Bitcoin in many parts of the world. To earn more digital currency, buy cloud mining contracts at Hashmart.io. This is an easy way to create a source of passive income, which will bring you big money in the coming years.