Introduction:
Ever since the introduction of cryptocurrencies to the world, there is a virtual battle going on among the government officials of several nations to determine its legality. There are a number of benefits associated with the blockchain technology behind all cryptocurrencies and several industries have incorporated it to enhance their infrastructure. However, the decentralized nature of cryptocurrencies has made the central authorities question its legality across the globe.
Cryptocurrency and its legality around the globe
Cryptocurrency is also termed as ‘digital’ currency due to its use in online transactions, it uses cryptography to ensure safety of all the transactions taking place.
1) Japan – one of the most developed nations, Japan had legalized cryptocurrency to enhance its growth. The government of Japan has set up PSA or a Payment Services Act built framework that permits some digital currencies and several interchanges to be used for the purpose of payment and trades. In recent times, Japan is popularly known as the hub for cryptocurrency exchanges taking place in Asia.
2) United States – in 2013, the government of the United States started accepting Bitcoin as a decentralized and virtual currency that might be used as a medium for performing transactions. In September 2015, the CFTC had also classified it to be a commodity. As a property, Bitcoin is taxable in the United States however there is no explanation about the legal status of other digital currencies. Trading cryptocurrency can be difficult for the beginners, click to https://bitcointraderapp.org/ to know more about trading and how it works.
3) Germany – one of the rarest European countries to have not only permitted the use of cryptocurrencies but, Germany has also actively participated to even further develop the blockchain solutions in the nation. In Germany, transactions and trading with cryptocurrency is totally made legal by the government for its people. The support from the German government towards digital currencies has enhanced its worth in the world.
4) France – in 2014, by announcing a regulation note the country has authenticated the use of cryptocurrencies for taxation, trading and also provided authority to people involved in digital currency exchanges.
5) Canada – Impak coin was the first digital currency that the government accepted to legalize cryptocurrencies in 2017. The Quebec regulation authority legalized Bitcoin in the past for the use of business models in limited aspects.
6) European Union – the digital currency Bitcoin, is legal almost everywhere in the EU. The government has clarified on not imposing VAT/GST in the conversion of fiat currency into cryptocurrency. However, the EU has not yet passed any clear legislation about the status of Bitcoin as a currency. In the European Union the cryptocurrencies and digital assets are categorized as QFI or Qualified Financial Instruments.
7) South Korea – Bitcoin is legitimized in South Korea but trading with cryptocurrency is prohibited. In recent times, Bitcoin transaction volume has grown massively in South Korea. The adults of the nation are permitted to transact on registered exchanges by using their original identities and accounts in financial institutions like banks.
8) India – Bitcoin is not illegal in India as of now. The current evolution of digital assets has allowed the government to recognize the revolutionary potential of cryptocurrencies in an early stage. The government of India has also declared that it is willing to look into the use of the complex technology Blockchain, to improve the financial service sector of the nation.
- In spite of its well-recognized advantages, there are several nations that cease the use of cryptocurrencies, one of them is China. In China, cryptocurrencies are not considered as a currency. Its banking sector does not accept cryptocurrencies or provide services that include them. The announcement that initial coin offerings are illegitimate is a step developed by the country.
Conclusion:
Although, there is a progression in terms of development in the acceptance and knowledge of Blockchain by several governing bodies across the globe, cryptocurrencies have a long way to go.