In 2020 cryptocurrency laws are going to revised — what it has for you?

Bitcoin and cryptocurrency regulations are now being revised after a decade of study. Many countries are now focusing on a comprehensive study of this new technology unless it becomes difficult to enact any law around it. China cleverly opted for a bold move in 2017, banning the promotion of cryptocurrency in its country. This is leading China a step back in the flourishing of blockchain technology. It was a surprise to the entire industry that China prohibited the growth of the most valuable technology in the country. Now, after October's announcement, it was clear why China did that.

China took time to study and work so that it could come up with a perfect strategy for blockchain technology. Many countries face major difficulties in creating a legislative boundary for cryptocurrencies. Now 2020 has become more focused on the law and regulations around the crypto industry as crime and scams around it are on the rise. Recently, a teenager from Canada accused of a $50 million cryptocurrency scam. There are many documented and unreported scams rising inside the industry. To avoid this, growing nation needs a strong and effective blockchain technology rule.

Countries that do not support cryptocurrencies, trying to build a regulation that could send a person to jail if they deal with cryptocurrencies. But it's all in the process; nothing has come to be an act. Therefore, interest in cryptocurrencies has grown in different countries. After 10 years of celebrating cryptocurrency, birthday countries thought to revise their regulations as technology has evolved since the past.

Canada:

New regulations and although taxation is different, progress is being made in many countries. Canada is introducing a new rule on securities transactions of blockchain markets. Many markets transfer immediate assets to customers and some keep for a second request, and Canada addresses the problems in this respect. The new regulatory system was issued by the Canadian Securities Administration (CSA) on 16 January 2020.

The guidance illustrated below,

“Potentially, there will be ongoing reliance and dependence of the user on the Platform until the transfer to a user-controlled wallet is made. Until then, the user would not have ownership, possession and control of the crypto assets without reliance on the Platform. The user would be subject to ongoing exposure to insolvency risk (credit risk), fraud risk, performance risk and proficiency risk on the part of Platform.”

South Korea:

South Korea now has a new tax framework on bitcoin and its income. Until the date of South Korea, there was no levy on cryptocurrency trading income. As a result, a new report from the Asian country leads to a different perspective scenario. The South Korean government is trying to construct a new formula for cryptocurrency gain taxation. Shortly, cryptocurrency profits will be considered capital gains and will be taxed in the country.

However, it is not the first time that the Korean government has been dragging cryptocurrency under tax policy. At the end of 2019, the National Tax Service (NTS) received a tax of 70 million dollars from Bithumb, the Korean Crypto Exchange.

United States of America:

Confusion within the US authorities now required policy on fair taxation. So it could not take consumers to a state of mystery when paying taxes. Commodity Futures Trading Commission (CFTC) and Internal Revenue Service (IRS) have two different views on bitcoin and other cryptocurrencies. The regulatory authority considers cryptocurrencies to be commodities, while the tax authority considers these digital currencies to be assets. In the USA, however, bitcoin taxes are split into two groups. U.S. lawmakers are continually studying to come up with a solution to this conflict. The new bill is presenting taxation regarding digital currencies known as “Virtual Currency Tax Fairness Act”. So, America has taken a step forward to resolve the problem and let congress decide about the taxation policy.

Russia:

Mikhail Mishustin, who removed the VAT fraudster and former Director of the Internal Revenue Service, is now in the position of Prime Minister of Russia. Now his new idea for the country is to control Russia's tax system. In an interview with the RBC TV News Network, 24 hours after becoming Prime Minister, he expressed his questions regarding cryptocurrency and said, “I am convinced that it is necessary to tax such operations, and to correctly assess any economic consequences of using cryptocurrencies”.

Now Russia is one of the hubs for cryptocurrency scams and the new prime minister is no longer to tolerate. He will rescue the country soon from the cryptocurrency frauds. He also said, “These digital platforms offer a new efficiency, but this is a threat to entire sectors of the economy.” However, Russia is studying cryptocurrency and trying to build digital rubble. The Russian central bank governor said, “We are testing stablecoins in our regulatory ‘sandbox.” So it is not sure how they are going to regulate cryptocurrency in their state but it is sure that law will be revised soon.

Malaysia:

The new law will now also be enforced in Malaysia. According to the revised legal framework, IPOs and ICOs can only be launched from an authorized platform. The newborn framework could deter cryptocurrency scams. The guidance stipulates that the initial exchange deals must be rendered in all Cryptocurrency bids. The law also allows the IEO representative to be licensed with the Securities Exchange according to this bid. Investments by IEO firms with paid-up resources of at least $1.2 million must be accepted.

India:

The growing country, India is now many foreign investors attraction. In this scenario banning cryptocurrency would be the dumbest act anyone can do. So, Wait is over, RBI (reserve bank of India) has cleared the stance of India regarding cryptocurrency. The fact that it would be a ban in India is no longer exists. However, New ICO, IPO is ban in India and banks are not involved in dealing with cryptocurrency. Governor said that collaborating with bank and cryptocurrency would raise the chance of online frauds and scams and India is not willing to take the chance. Currently, bitcoin and Ethereum is legal trading in India and it is good news for all Indian trader who was in a state of conflict.

With these countries, many more countries are willing to change their taxation policies or law framework. The reason is simple. The blockchain technology is spreading its wings in every sector and the evolving rate is quite high. Within 10 years it has grown well and a perfect regulatory framework is needed to control its work.

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