MOST COUNTRY REGULATIONS ON CRYPTOCURRENCIES – A STEP TO ENSURING THE FUTURE OF CRYPTOCURRENCY

in STEEM NIGERIAlast month

Happy New Week Steemits

image.png

image source

Cryptocurrency, sometimes called virtual currency is a cryptographically secured, distributed digital currency used as a means of exchange. Due to the development of new technologies and innovations, the rate of use of virtual currency is rapidly increasing throughout the globe, replacing not only cash payments and payments by bank transfer, but also electronic cash payments.

They are currencies in the sense that they can be exchanged peer-to-peer. They are representations of numbers (abstract objects). An abstract currency system is a self-enforcing system of property rights over an abstract instrument which gives its owners the freedom to use and the right to exclude others from using the instrument. Not all countries see the advent of blockchain technology and cryptocurrencies as a threat, though for different reasons. This article surveys the legal and policy landscape surrounding cryptocurrencies in some countries (taking by Continents) around the world.

CRYPTOCURRENCY REGULATIONS IN SOME COUNTRIES OF THE WORLD
The past four years have seen cryptocurrencies become universal, prompting more national and regional authorities to deal with their regulation. The expansive evolution of cryptocurrencies makes it possible to identify developing arrangement

image.png

image source
In Chain Financial institutions are not allowed to facilitate bitcoin transactions. China’s central bank, the People’s Bank of China (PBOC), has been conducting a study of digital currency for over three years, and has set up an Institute of Digital Money within the PBOC, According to Zhou, the hen governor, Chinese regulators are not recognizing virtual currencies such as bitcoin as a tool for retail payments like paper bills, coins, or credit cards. The current Chinese legislation does not contain any special rules for taxation of virtual currency and transactions with it. At the same time, in the announcement of the National Bank of 2013, cryptocurrency is defined as a virtual commodity, not a currency, and may be taxed with the value-added tax, and income and profit in the cryptocurrency are subject to a corporate tax, individual income tax and capital gains.
source
source
source

image.png

image source
Regarding the status of cryptocurrency, the authorities recognize that this sphere is not regulated by law and warn that criminal responsibility exists for fraudulent operations. This position has been taken by Hong Kong since 2014. At the moment, the government does not consider it necessary to introduce (adopt) new legislation on the regulation of trade (of cryptocurrencies) in such virtual goods or to prohibit citizens from participating in such transactions (with cryptocurrency). However, the authority will be closely watching the usage of bitcoin locally and its development overseas.
source
source

image.png

image source
As of April 2017, cryptocurrency exchange businesses operating in Japan have been regulated by the Payment Services Act. Cryptocurrency exchange businesses have to be registered, keep records, take security measures, and take measures to protect customers. The law on cryptocurrency transactions must comply with the anti-money laundering law; and measures to protect users investors. The Payment Services Act defines “cryptocurrency” as a property value. The Act also states that cryptocurrency is limited to property values that are stored electronically on electronic devices, not a legal tender.
source

image.png

image source
The South Korean government implemented a rule that allows trades in cryptocurrencies only from real-name bank accounts (“real-name account system”) beginning January 30, 2018. Cryptocurrency dealers must have contracts with banks concerning cryptocurrency trades. The banks examine dealers’ management and cyber security systems before signing such contracts. In order to make a deposit into their e-wallet at a cryptocurrency dealer, a cryptocurrency trader must have an account at a bank where the cryptocurrency dealer also has an account. The bank checks the trader’s (customer’s) identity when it opens an account for the trader, and the trader reports his/her bank account to the dealer.
source
source

image.png

image source
Financial institutions in Taiwan are not allowed to facilitate bitcoin transactions. Regulators have warned the public that bitcoin does not have legal protection, "as the currency is not issued by any monetary authority and is therefore not entitled to legal claims or guarantee of conversion”. On 31 December 2013, Financial Supervisory Commission (Republic of China) (FSC) and CBC issued a joint statement which warns against the use of bitcoin. It is stated that bitcoin remains highly volatile, highly speculative, and is not entitled to legal claims or guarantee of conversion.
source
source

image.png

image source
Bank Indonesia has warned that cryptocurrencies may not be used for payments in the country and payment firms are not allowed to make virtual currency transactions. Bank Indonesia affirms that it forbids all payment system operators (principal, switching operator, clearing operator, final settlement operator, issuer, acquirer, payment gateway operator, electronic wallet operator, money transfer operator) and financial technology operators in Indonesia, both bank and non-bank institutions, from processing transactions using virtual currency, as stated in Bank Indonesia Regulation No. 18/40/PBI/2016 on Implementation of Payment Transaction Processing and Bank Indonesia Regulation No. 19/12/PBI/2017 on Implementation of Financial Technology.
source

image.png

image source
On 4 November 2013, Bank Negara Malaysia (BNM) met with local bitcoin proponents to learn more about the currency but did not comment at the time. BNM issued a statement on 6 January 2014 that bitcoin is not recognized as a legal tender in Malaysia. The central bank will not regulate bitcoin operations at the moment and users should aware of the risks associated with bitcoin usage
source
source

image.png

image source
On 6 March 2014, Bangko Sentral ng Pilipinas (BSP) issued a statement on risks associated with bitcoin trading and usage. Recently virtual currencies were legalized and cryptocurrency exchanges are now regulated by Central Bank of the Philippines (Bangko Sentral ng Pilipinas) under Circular 944; however bitcoin and other "virtual currencies" are not recognized by the BSP as currency as "it is neither issued or guaranteed by a central bank nor backed by any commodity.
source

image.png

image source
The Monetary Authority of Singapore (MAS) published a consultation paper proposing legislation for payment services. The proposed bill would expand the scope of regulation to include the purchase and sale of virtual currencies and other innovations used in domestic money transfers and merchant transactions via point-of-sale or online payment gateways. The new legislation would be incorporated into Singapore’s existing laws on payment services, the 2006 Money-Changing and Remittance Businesses Act. The draft is the second of its kind and was amended following feedback received from the first consultation paper.
source
source

image.png

image source
Finance minister Arun Jaitley, in his budget speech on 1 February 2018, stated that the government of India will do everything to discontinue the use of bitcoin and other virtual currencies in India for criminal uses. He reiterated that India does not recognise them as legal tender and will instead encourage blockchain technology in payment systems.
"The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system," Jaitley said.
The fundamental stand of the Reserve Bank of India (RBI) with regard to Bitcoin and other cryptocurrencies is that they are not legal tender currencies. They cannot be used for payments as usual currencies. Rather, they have big risks without any regulation and support. The RBI has issued warnings three times, first in December 2013, then in February 2017 and finally on 5 December 2017. The initial caution by the RBI in 2013 explains why investment in virtual currencies such as Bitcoin is risky. source
source
source

image.png

image source

The European Union has passed no specific legislation relative to the status of bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin.
VAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services. It is legal to trade with bitcoin. In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the 'bitcoin' virtual currency is exempt from VAT" and that "Member States must exempt, inter alias, transactions relating to 'currency, bank notes and coins used as legal tender', making bitcoin a currency as opposed to being a commodity. According to judges, the tax should not be charged because bitcoins should be treated as a means of payment.
source
source

image.png

image source
The Financial Services Commission of Mauritius considers cryptocurrencies to be regulated as a Digital Asset under the Financial Services Act 2007, and while it cautions investors they are not protected by any statutory compensation agreements, they are legal.
source

image.png

image source
There has not been any advice from government official in Angola against the use of Bitcoin, there is no legislation against it and it remains fully legal.
source

image.png

image source
In December 2014 the Reserve Bank of South Africa issued a position paper on virtual currencies whereby it declared that virtual currency had ‘no legal status or regulatory framework’, it has been classified as an intangible assest.
source
source

image.png

image source
As September 2017 the Bank of Namibia issued a position paper on virtual currencies entitled. Wherein it declared cryptocurrency exchanges are not allowed and cryptocurrency cannot be accepted as payment for goods and services but legal.

image.png

image source
The Bank of Jamaica (BoJ), the national Central Bank, has publicly declared that it must create opportunities for the exploitation of technologies including cryptocurrencies. Accordingly, in 2017 the BoJ will be embarking on a campaign to build awareness of cryptocurrencies as part of increasing general financial literacy and understanding of cryptocurrencies. Indications are that early BoJ signals point to their general framework on "electronic retail payment service systems" possibly being brought to bear on initial cryptocurrencies.
source
source

image.png

image source
In Argentina, Bitcoins may be considered money, but not legal currency. A bitcoin may be considered either a good or a thing under the Argentina's Civil Code, and transactions with bitcoins may be governed by the rules for the sale of goods under the Civil Code
source

image.png

image source
Bitcoin is not regulated, according to a 2014 statement by the Central Bank of Brazil concerning cryptocurrencies, but is discouraged because of operational risks
source

image.png

image source
Bitcoin miners Venezuela used to be arrested by law enforcement authorities, though in January 2018 Carlos Vargas, the government's cryptocurrency superintendent said “It is an activity that is now perfectly legal.
source

image.png

image source
On 2 September 2018, a decree legalizing crypto trading — also making it tax-free — and mining in the country came into force, making Uzbekistan a crypto-friendly state
source

image.png

image source
As of 2017, the Israel Tax Authorities issued a statement saying that bitcoin and other cryptocurrencies would not fall under the legal definition of currency, and neither of that of a financial security, but of a taxable asset. Each time a bitcoin is sold, the seller would have to pay a capital gains tax of 25%. Miners, traders of bitcoins would be treated as businesses and would have to pay corporate income tax as well as charge a 17% VAT
source

image.png

image source
Bitcoin and cryptocurrency is not legal tender in Brunei Darussalam and are not regulated by AMBD (Brunei Monetary Authority). It is not protected under the laws administered by AMBD.
source

image.png

image source
Businesses and individuals in Czech Republic who buy, sell, store, manage, or mediate the purchase or sale of virtual currencies or provide similar services must comply with the anti-money laundering law. Bitcoin is therefore classified as intangible asset (not as electronic money) for the purpose of accounting and taxes.
source
source

image.png

image source
The German Finance Ministry on 19 August 2013 announced that bitcoin is now essentially a "unit of account" and can be used for the purpose of tax and trading in the country. It is not classified as a foreign currency or e–money but stands as "private money" which can be used in "multilateral clearing circles", according to the ministry. In November 2019, a legislation passed by German parliament allows the banks to sell and store cryptocurrencies starting from 1 January 2020.
source
source

image.png

image source
As of March 2015, an official statement of the Romanian National Bank mentioned that "using digital currencies as payment has certain risks for the financial system. In January 2019, Law nr. 30/2019 clarifies that starting in 2019, income from trading "virtual currency" is classified under "income from other sources". In addition, there is a new sub point, Article 116. (2)C, specifying that the income tax of 10% is only applied on the "positive difference between the selling price and acquisition price" (and not to the entire received amount from a sale).
source
source

image.png

image source
The Norwegian Tax Administration stated in December 2013 that they don't define bitcoin as money but regard it as an asset.
The Norwegian government in February 2017 stated that they would not levy VAT on the purchase or sales of bitcoin. source

image.png

image source
Transactions in bitcoins in Spain are subject to the same laws as exchange transactions
source

image.png

image source
The French Ministry of France has issued regulations on 11 July 2014 pertaining to the operation of virtual currency professionals, exchanges, and taxation and as being legal.
source

image.png

image source
The United Kingdom is a leader in cryptocurrency integration and one of the most favorable and convenient jurisdictions for conducting a cryptocurrency business. However, the final position of the government on legal regulation is still not worked out. The income (profit) of an economic entity is subject to capital gains tax, corporate tax and income tax.
source
source

image.png

image source
In the United States, prejudicial supervision of virtual currency is the responsibility of the state. For example, the states of Idaho, Louisiana, New York and Washington adopted the concept that the transfer of virtual currency and mining are the objects of money transmission in accordance with the law “on the unification of monetary services.” In turn, for the implementation of cryptocurrency services, a license is required.
source
source
source.

image.png

image source
Croatia and Slovenia are two countries with a certain common history, having both been part of the former Yugoslavia. It is therefore not surprising that the countries have similarities in their perspectives on blockchain technology and its applications. Slovenian regulators have released a statement clarifying certain ambiguities related to Bitcoin and other digital currencies. The Tax Administration of the Republic of Slovenia said it received queries from taxpayers who were interested in the possible tax implications of bitcoin transactions. In response, the Tax Administration requested a formal decision from the Ministry of Finance, which, in reply, stated that Bitcoin remains a virtual currency – thus, it is not “a monetary asset” under Slovenian law.59 In 2018, Croatian and Slovenian businesses and crypto-enthusiasts are coming together in Croatia to map out strategies that will create a framework for cryptocurrency policy in their countries.
source

image.png

image source
As of 17 January 2017, The Central Bank of Nigeria (CBN) has passed a circular to inform all Nigerian banks that bank transactions in bitcoin and other virtual currencies have been banned in Nigeria. Later on, a committee was set up by the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to look into the possibility of the country adopting the technology driving bitcoin and other digital currencies – blockchain. The committee has submitted its report but "several sub-committees are still working on the issue" according to the Director, Banking & Payments System Department at CBN, Mr. ‘Dipo Fatokun.
source
source.

Conclusions
Cryptocurrency has already been recognized as a means of exchange. Therefore, in the near future circulation and mining of cryptocurrencies will become an integral part of the market economy. E-money is also digital, however the main difference is that e-money is issued not only by the State, but also by commercial banks, creating a certain imbalance. The issuer of cryptocurrency is decentralized, and it exists only virtually. Virtual currency possesses the nature of obligations rights as well as property rights, since it may be both a means of payment and a commodity. A number of countries demonstrate a complete inability to respond adequately and competently to innovations and technological progress. But the emergence of decentralized systems and cryptocurrency will inevitably lead to evolutionary changes in the international legal system.

My appreciate goes to everyone on the steemit platform

And to @steemcurator, @steemcurator01, @steemcurator02

.