Introduction
Since its inception in 2009, Bitcoin and the other cryptocurrencies that followed have been fraught with controversy.
While Bitcoin has been extensively criticised for its volatility, usage in illicit activities, and excessive power to mine it, some people, particularly in developing countries, regard it as a haven amid economic storms.
However, as more individuals turn to cryptos as an investment or lifeline, these concerns have materialised in a slew of new limitations on how people may use them.
The legal position of Bitcoin and other altcoins (alternative currencies to Bitcoin) varies significantly from nation to country, with specific relationships still being established or changing often. Get more info at the cryptocurrency
Cryptocurrency Conducts Throughout the World
Many governments and regulators continue to oppose this “asset class” and have expressly prohibited it. Others have embraced it and agreed that regulating Bitcoin would be advantageous to them. The regulations vary by location, whether mining cryptos, using them as legal money, or holding them as property.
However, a pattern emerges when seen from the viewpoints of established, emerging, and underdeveloped economies. Take a look at how cryptocurrencies get governed in various regions of the globe.
Bitcoin is nearly legal virtually everywhere in the European Union
While the EU has yet to enact legislation defining Bitcoin’s position as a currency, it has stated that VAT/GST does not apply when traditional (fiat) currency is converted to Bitcoin. Bitcoin transactions for goods and services are subject to VAT, GST, and other taxes (such as income tax).
In the European Union, cryptocurrencies and crypto-assets get classified as qualified financial instruments (QFI). Banks, credit unions, and financial firms don’t get barred from acquiring crypto assets or cryptocurrencies, gaining exposure to them, or offering services in them under EU legislation. Outside of the United States, the EU leads the globe in Bitcoin trading volume on online exchanges, with $204.1 million.
Bitcoin is legal in the US
Bitcoin was ranked as an interchangeable decentralised cryptocurrency by the US Treasury in 2013. The Commodity Futures Trading Commission (CFTC) established Bitcoin as a commodity in September 2015. The IRS treats Bitcoin as property and taxes it accordingly. In 2018, a US Supreme Court ruling (Wisconsin Central Ltd. v. the US) on altering the definition of money included Bitcoin. In September 2016, a federal judge decided that Bitcoins are money in the traditional sense.
South Korea is one of the most Bitcoin-friendly countries in the world
Miners and other foreigners, on the other hand, are restricted from trading cryptocurrency. Adults in South Korea can use their true identities and bank accounts with a bank, which also has a budget for dealing with registered enterprises.
The bank and the conversation are responsible for verifying the customer’s identification and enforcing other anti-money laundering regulations.
We also have Japan
The Payment Services Act recognises Bitcoin and other digital currencies as legal property in Japan, which has the most active regulatory environment for cryptocurrencies globally.
The Act further states that bitcoin is limited to the electronic storage of property values in electronic devices and is not utilised as legal money. The value of Bitcoin traded on internet exchanges in Japan is estimated to be $6.6 million.
And let’s not forget about India
Bitcoin is not yet banned in India. Because of cryptocurrency’s rapid evolution, politicians and regulators appear to have seen the possibility to accept the new technology early. From the infamous ‘RBI ban’ in 2018 to reports of an impending bill banning cryptos in 2021 that has yet to materialise, India has had its fair share of ups and downs regarding Bitcoin regulation.
In the end, we also have China
Bitcoin is not yet banned in India. Because of cryptocurrency’s rapid evolution, politicians and regulators appear to have seen the possibility to accept the new technology early. However, the partnership has had its ups and downs. From the infamous ‘RBI ban’ in 2018 to reports of an impending bill banning cryptos in 2021 that has yet to materialise, India has had its fair share of ups and downs regarding Bitcoin regulation.
Conclusion
Even with good improvements in many government organisations’ knowledge of blockchain, Bitcoin regulation still has a long way to go. Because Bitcoin is still at its outset, it’s hard to say whether it’ll get its way or encounter regulatory obstacles in the coming years.
