Legality and regulation of Bitcoin around the world
Nobody gave Bitcoin the chance to become as phenomenal as it is today. During its nascent days, there were doomsday warnings of how the cryptocurrency is going to crash. Fast forward to the present, and Bitcoins fortune has changed. It is the hottest topic in the financial world and with Blockchain disrupting the industry.
Of course, with this buzz around Bitcoin, governments and regulators have to take a look. Hence, to some, it was scary, and they banned it, to others, it’s better to keep a close eye while allowing market forces to regulate it, while to others, it’s better to rein this charging digital currency through regulation.
So, in this article we’ll examine the regulations and rules concerning Bitcoin around the globe and how it is affecting countries where Bitcoin is legal and illegal.
A new regulation came into effect in July 1st 2017 that will see the government treat bitcoin as ‘just money’ and this will definitely place it among taxable category. So, if you’re Australian and have Bitcoin stash, you’d like to keep an eye on the new legislation.
To keep you in the loop, the Australian government treats BTC as property and has released tax guidelines for individuals. It is considered barter when you trade or make purchases using bitcoin.
This tiny European country is at the forefront of adopting Bitcoin and Blockchain technology and has even gone further to integrate it into several of social services. The Blockchain can be seen powering healthcare, banking services, and also in government – with the e-citizens’ initiative.
It’s unsurprising then to see bitcoin ATMs being widely used and several bitcoin startups springing up.
There are no formal regulations in place to regulate Bitcoin in South Korea and does not mean the following is not there. In fact, regular industry Bitcoin conferences are held in this country.
It is not illegal to use BTC for transactions however any unlawful activity will be prosecuted.
Bitcoin is regulated in Germany and is considered a unit of account. And yes, it is taxable. Though currently not recognized as a currency, however, it is seen as private money.
Under the Argentinean laws, BTC is considered as a medium of exchange but not as legal currency. So, you can use it to make payments or make purchases as long as the other party also accepts cryptocurrency.
The central bank of Nigeria in January 2017, restricted financial institutions from trading and holding Bitcoin. Though individuals can own and trade BTC.
The United States of America
The Americans are leaders in global world bitcoin trading by volume, though there’s no formal regulation coordinating the industry yet. In 2013 the US Treasury classified the BTC as a convertible decentralized digital currency which places it in the category to be taxed.
Chinese banks and financial institutions are barred from trading in cryptocurrencies including BTC; however, individuals are allowed to hold and trade in the digital currency.
With the increasing adoption of cryptocurrencies as a means of transactions governments all over the world are scratching their heads on how to regulate this emerging trend – so we believe more changes are coming in regards to regulations that will shape cryptocurrency landscape as more countries where bitcoin is legal and illegal increases or decreases respectively.