On February 5, 2021, the Central Bank of Nigeria issued a circular informing Nigeria`s financial institutions that continuing their January 2017 circular would prohibit cryptocurrency trading or facilitate its payment and result in a hefty penalty. [19] However, unlicensed mining drains more than 2 GW from the national grid every day, resulting in electricity shortages. Since April 2017, cryptocurrency exchanges operating in Japan are subject to the Payment Services Law. Cryptocurrency exchange companies must be registered, keep records, take security measures, and take steps to protect customers. The law on cryptocurrency transactions must comply with the anti-money laundering law. and measures to protect investors from users. The Payment Services Act defines “cryptocurrency” as real estate value. The law also states that cryptocurrency is limited to property values stored electronically on electronic devices, not legal tender. [105] [106] The Finnish tax administration has issued instructions for taxing virtual currencies, including bitcoins. [3]: Finland [170] A Bitcoin transaction is not considered a currency or security, but a private contract equivalent to a contract for difference for tax purposes. The purchase of goods with Bitcoin or the conversion of Bitcoin into legal tender “realizes” the value and any price increase is taxable; However, losses are not tax deductible. Mined Bitcoin is considered earned income.
[170] I will highlight some concrete examples of how the adoption of Bitcoin and cryptocurrencies can help Bangladesh. The first thing that comes to mind is crypto transfer. If we talk about a “free” way to earn cryptocurrency, mining will be at the top of the list. After all, in this aspect, you just need to solve some kind of computer math problem and get crypto as a reward. And the remuneration is also quite generous. Banks are not allowed to trade bitcoins due to concerns about financial crime and hacking. In addition, cryptocurrency is banned at Qatar Financial Centre. [75] [76] Although the majority of countries do not make the use of Bitcoin itself illegal, its status as a means of payment or as a commodity varies depending on the different regulatory implications. The provisions of the decree “On the Development of the Digital Economy” create a legal basis for the circulation of digital currencies and tokens based on blockchain technology, allowing companies resident in the high-tech park to provide the services of exchanges and exchange offices with cryptocurrencies and attract funding through the ICO. For legal entities, the decree confers the right to create and place their own tokens, to carry out transactions through exchanges and exchange operators; The decree gives individuals the right to mine, possess tokens, acquire them for Belarusian rubles, foreign currency and electronic money, exchange and bequeath them. Until January 1 In 2023, the decree excludes from the tax base income and profits from transactions with tokens.
With regard to individuals, the acquisition and sale of tokens is not considered an entrepreneurial activity, and the tokens themselves and the proceeds of transactions with them are not reportable. The peculiarity of the regulation introduced is that all operations must be carried out through the resident companies of the high-tech park. In early 2018, the People`s Bank of China announced that the State Administration of Foreign Exchange headed by Pan Gongsheng would crack down on bitcoin mining. [100] [101] Many Bitcoin mining operations in China had ceased operations in January 2018. [99] On September 24, 2021, a complete ban on cryptocurrency trading and mining was enacted. [102] The Bank of Lithuania published on the 31st. January 2014 issued a warning that Bitcoin is not recognized as legal tender in Lithuania and that Bitcoin users should be aware of the high risks associated with its use. [178] However, we need to make Bitcoin legal for this to happen. We need open and accessible policies that enable the use of digital assets.
Worldwide, transfers cost on average 6.3% of the amount sent. The legal status of Bitcoin and other altcoins (alternative coins to Bitcoin) varies greatly from country to country, while in some cases the relationship has not yet been properly defined or constantly evolving. Albania. Warns citizens to use cryptocurrency responsibly. Afghanistan. The Ministry of Health plans to use blockchain to identify fraud in medicine. Still, the legal status of crypto is unclear. Angola. There is no law on that.
Anguilla. They have guidelines for regulating ICOs, but do not mention the complete ban on cryptocurrencies. Argentina. Specifies that their central bank is the only one that can issue legal tender and emphasizes that citizens treat crypto responsibly. Belize. Belize has no cryptographic regulation to date. British Virgin Islands. They were considered ICO-friendly, but there is nothing official available on cryptocurrencies.
The government is waiting with cryptocurrency policy and wants to see how the crypto scene develops before taking any further action. Brunei. The focus is on the fact that cryptocurrency is not legal tender. The government calls for caution. Cambodia. Although the government is developing its own blockchain-backed currency, cryptocurrencies are still a gray area legally, with the government warning of the potential risks of cryptocurrencies. Costa Rica. Cryptocurrencies are emphasized as the risk and responsibility of an individual and are not recognized as legal tender. Cuba. There is no overarching framework for mining crypto under government. However, an exchange has always counted without a national reaction. Guatemala.
Citizens are aware of the decentralized nature of cryptocurrency. It is not recognized as a domestic or foreign means of payment. Haiti. There is no given framework for crypto. India. Although a ban was feared in early 2021, the government will create a body that will decide how to deal with cryptocurrency. Honduras. Bitcoin and other cryptocurrencies are not backed by the country`s central bank. The individual is solely responsible for his or her own risks. Kenya. The government has issued warnings about the volatile nature of crypto, lack of regulation and vulnerability to criminal activity, and urges caution to citizens who wish to get involved.
Jamaica. The government calls for caution when it comes to crypto. Latvia. Although crypto is subject to income tax for individuals and businesses, cryptocurrencies are still legally in a gray area in Latvia. Lesotho. Lesotho discourages cryptocurrency practices and does not allow the mining of cryptocurrencies that are not authorized. Macao. The Monetary Authority of Macau advises against participating in crypto-currencies. Malaysia. Bitcoin and other cryptocurrencies are not legal tender and the Malaysian government advises citizens to use them with caution. The use of Bitcoin and cryptocurrency with transparency is strongly emphasized. Mexico.
Financial institutions are working to transfer the risk of cryptocurrencies to citizens. It is not approved by the central bank and is not considered legal tender. Moldova. The National Bank of the Republic of Moldova advises to proceed with caution. Montenegro. Crypto is considered an individual risk. Given its desire to join the European Union and use the euro as legal tender, the government is cautious when it comes to crypto. Pakistan.