Regulation of crypto-currency in the world
- 1 Countries where the crypto currency is a legal tender
- 2 Countries where the crypto currency is not recognized or prohibited
- 3 A number of countries are preparing special laws and regulations for the circulation of crypto currency
- 4 In some countries, crypto currency is partially or completely prohibited
The paradox, but the regulation of the crypto currency, worth more than 300 billion, is much weaker than the control of the approaching four billion ICO market. If the securities and financial markets commissions publish rules and guidelines for the release of new tokens one by one, the Central Banks in most cases limit themselves to warnings about the risk of crypto-investment, but disclaim all responsibility.
Nevertheless, the regulation of the market and turnover of digital coins is present, according to their positions and approaches, the country can be divided into several categories.
Countries where the crypto currency is a legal tender
Here in proud solitude is Japan. The country of the Rising Sun recognized bitcoin from April 1, 2017 and it is subject to all the requirements of the Payment Services Act. In Japan, the registration of crypto-exchange exchanges is also introduced, and the Financial Services Agency (FSA) is responsible for issuing licenses. The official recognition made Japan the leader of the crypto-currency market, accounting for more than half of the world’s digital coin turnover.
The United States has not yet recognized bitcoin as a means of payment, but the Commodity Futures Commission’s authorization for the launch of bitcoin futures for the CME Group and CBOE can be considered a recognition of bitcoins as a digital asset. In the United States, there are also licenses for the operation of the exchange-level exchanges at the level of individual states (BitLicense in the state of New York).
In Belarus, the purchase and sale of crypto-currency is permitted by the decree “On the Development of the Digital Economy”, and is not subject to any tax.
Countries where the crypto currency is not recognized or prohibited
In the countries of the European Union, the exchange of crypto-currency is also not prohibited and regulated, the Central Banks of individual countries are limited to warnings about the risk of crypto-currency investments.
Non-EU Switzerland does not regulate the turnover of bitcoin, but the attitude of officials to digital coins is one of the most favorable.
In Australia, it is mandatory to register crypto-exchange exchanges and for a time there was a double taxation law when the user had to pay tax first when buying bitcoins, and the second time he made any purchase for bitcoins, but now he canceled.
The Bank of South Korea takes a rather negative position vis-à-vis the digital currency, but given the great interest of the population, the bitcoin was not allowed to be banned here, limiting itself to the introduction of rules for crypto-instruments.
A similar approach to the Korean approach was adopted in Singapore by extending the Law on Payment Services to crypto currency exchangers.
In oil-rich Saudi Arabia and the United Arab Emirates, there is no official recognition, but both countries are actively investing in new technologies to get rid of oil dependence, and therefore the attitude towards bitcoin and other digital coins is generally favorable.
In the largest economies of South America – Brazil and Argentina, bitcoin is not regulated.
Nigeria – the most populous state of Africa, does not prohibit the trade in crypto currency, but warns that users conduct it at their own peril and risk.
A number of countries are preparing special laws and regulations for the circulation of crypto currency
In Russia it is expected to adopt a separate law on the crypto currency. For its development, a working group has been formed in the State Duma under the leadership of Elina Sidorenko, and the Ministry of Finance and the Central Bank are also actively involved. The law should be ready by July 1, 2018.
The second largest state of the planet India is also going to regulate the crypto-currency, but the date for the appearance of the corresponding law has not yet been named.
The Islamic Republic of Iran is preparing to use bitcoin in the country, subject to proper regulation.
Malaysia intends to submit legislation on the regulation of bitcoin in 2018.
His crypto will also be in the Philippines, here digital currencies can be recognized as a kind of securities.
In some countries, crypto currency is partially or completely prohibited
The largest and most economically significant state, where the turnover of digital coins is limited, is China. But the Chinese prohibition extends exclusively to the trade in the yen, the sale of bitcoins for dollars, and the exchange of digital coins for others is allowed. Companies can easily accept digital coins as payment for goods and services, peer-to-peer exchange service users also do not apply any sanctions.
Other reasonably strong countries, where they intend to prohibit the turnover of bitcoin, are Indonesia and Vietnam. In the near future, Algeria and Morocco will also prohibit the circulation of crypto-currencies.
The use of crypto-currency in Bangladesh, Bolivia, Ecuador, Nepal, Namibia, and Zimbabwe has already been banned.