Cryptocurrency transactions are governed by rules in these countries
Cryptocurrency has been around for quite some time. However, mainstream adoption has increased recently, with 2020 being a significant year to add to its importance. However, 2021 is a big year because countries all around the world have sought to adopt cryptocurrencies in some form or another. Similarly, several governments have started developing cryptocurrency legislation to oversee the bitcoin exchange process.
International restrictions on Bitcoin have yet to be seen. However, given the rapidly changing crypto scene, it seems clear that we will soon see it. We will learn about various countries that have established official rules on cryptocurrencies today.
The United States
While Bitcoin is legal in some states, it is not governed by any comprehensive regulations. The Financial Crimes Enforcement Network (FinCEN), for example, considers cryptocurrencies to be money transmitters. The Internal Revenue Service (IRS), on the other hand, views cryptocurrencies as a form of digital property.
The European Union
The EU has received a lot of attention because it was one of the first countries to declare bitcoin legal throughout the EU. Despite this, the EU has not passed any explicit legislation governing the crypto activity. The 5th AML Directive, on the other hand, mandates that crypto exchanges adhere to EU anti-money laundering standards.
Singapore has always been at the forefront of technological advancement and adoption. Similarly, the country has taken a favorable stance on cryptocurrency. To govern cryptocurrencies and encourage their acceptance, the Blockchain and Cryptocurrency Regulation, 2020 was just signed.
In this country, cryptocurrency exchanges are completely legal. Since they are legal, Australia’s government has made cryptocurrency subject to section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF 2006), as well as related legislation. In addition, bitcoin is treated as a kind of property in this country and is subject to Capital Gains Tax (CGT). Crypto exchanges will be required to register with AUSTRAC under the AML/CTF 2006 Part 6A – Digital Currency Exchange Register, according to new laws handed down by the Australian Transaction Reports and Analysis Centre (AUSTRAC) in 2018.
All bitcoin trading platforms in Japan are regulated by the Financial Services Agency (FSA). In addition, the Payment Services Act of Japan approved Bitcoin in 2017.
Following in the footsteps of the United States, Canada is enthusiastic about cryptocurrency adoption. In Canada, cryptocurrency transactions are legal and recognized as a commodity, therefore they are recorded as company income. Companies that deal with cryptocurrency must register with Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC).
Crypto exchanges are legal in South Korea, but cryptocurrencies are not. Taxes are expected to be levied on cryptocurrency transactions. The Ministry of Strategy and Finance, on the other hand, has spelled out its proposal to levy a tax on crypto transactions, with a redesigned tax system set to go into effect in 2022.
Mexico is located in Latin America and is the only country in the region to have enacted cryptocurrency rules. The Fintech Law, which regulates Financial Technology Institutions, was published in the Mexican Official Federal Gazette in 2018. (IFTs). This new regulation was enacted solely to control cryptocurrencies in Mexico’s financial sector.
Cryptocurrencies in Germany are regulated by the German Federal Financial Supervisory Authority (BaFin) and can be used for payment. As a result, everyone who desires to conduct crypto transactions must first obtain authorization from the authority.
Malta is regarded as a pioneer in the field of cryptocurrency legislation. Although cryptocurrency is illegal, cryptocurrency exchanges are. Malta was the first to enact a trio of digital assets-related statutes (MDIA, ITAS, and VFA), as well as blockchain law, in order to improve current AML/CTF law. The bitcoin legislation is a landmark piece of legislation that was introduced by the government in 2018 to regulate cryptocurrency exchanges. In addition, the Malta Digital Innovation Authority was established to oversee crypto policies and ensure that crypto is used ethically.