Everscale Partner
Bitcoin saw the light and became widespread in the late 2000’s, after 10 years, the world has developed a contradictory situation around cryptocurrency and all aspects of their use: from legislative prohibitions on any transactions to the favorable climate in their relationship and full legalization. Today, the world has not formed a single approach to the legislative status of cryptocurrencies. Against this background, miners, crypt owners, exchanges, investors and users are looking for “quiet coves” for their projects and personal finances around the world. Especially popular are countries that have already decided on the status of the crypt at home and have fixed the basic rules for the treatment of digital assets in the laws. This is especially important against the background of the emerging growth of the crypt in the second quarter of 2019.
Where legalized cryptocurrencies
Germany. Bitcoin is recognized as a means of payment, which means that it is subject to the same taxes as when using fiat. Here the crypt is private money.
Sweden. The status of cryptocurrencies is defined, it is possible to conduct business. Only traditionally high taxation can interfere.
Australia. Digital currency can be used as a medium of exchange.
USA. The crypt is allowed, but the government continues to determine the future and the point has not yet been put. The decision can be made in favor of prohibition and full or partial legalization. Many other countries are looking at the United States and waiting for their decision.
Canada. Tokens are goods, therefore, all transactions with tokens are nothing but barter operations.
Japan. Crypt is a generally recognized means of payment, which is used on a par with the yen.
Britain. Progressive laws, it is required to conduct an examination of all clients of cryptocurrency services and projects (KYC/AML-procedures), as well as to report suspicious transactions. Here, the status of the crypt is determined by the type of asset.
Venezuela. The economic situation and the frightening depreciation of the national currency, as well as the political regime have made legal and nationally recognized cryptocurrency “Petro”.
Switzerland. There is so much respect for individual rights that the crypt at the legislative level was adopted as traditional money. There are statements by Ministers on the establishment in the country, “cryptonation”.
Estonia, Malta, Belize, Gibraltar, Nigeria, South Africa. Small (except South Africa) countries that welcome the conduct of financial and technical projects on their territory, provide minimum requirements and deadlines for the launch of cryptocurrency projects.
Where there is a ban on cryptocurrencies
China. It has been banned from trading cryptocurrencies and exchanges since September 2017. The boycott caused a large flurry in the crypto community. However, the country is not banned and actively developing technologies and new developments in the field of blockchain. The population of Cathay is actively using the crypt that leaves no hope for the lifting of the boycott.
South Korea. Against the background of large-scale fraud with digital currencies, the government decided to impose serious restrictions on the treatment of the crypt. Back in early 2018, the country was in the top three in terms of the activity of using cryptocurrencies.
Russia. There are more questions than answers. Understandable laws still do not exist, but the government’s position and the tone of the speeches gradually changed from prohibitive and restrictive to preemptively permit. The law “on digital financial assets”, which will reflect all aspects of the use of the crypt plan to approve in 2019.
Singapore. An example of progressive cryptocurrency regulation. There are restrictions on speculation, the Central Bank has introduced a procedure for mandatory licensing of cryptocurrency activities.
Ghana. There is a clear and simple wording: “Cryptocurrencies are outlaws.”
Estonia is a Paradise for cryptocurrencies
In 2018, Estonia made a lot of efforts to make itself attractive in the eyes of the developing global cryptocurrency community. First of all, politicians took a step towards crypto-investors and traders. Legalized in the country receive 2 types of licenses: provider cryptocurrency exchange (Cryptocurrency Exchange Provider License – allows the cryptocurrency to Fiat, the Fiat in bitcoin and the exchange of one cryptocurrency to another) and the provider of the electronic wallet (Wallet Service Provider License – allows you to provide services to the “cold” or “hot” wallets).
In fact, these licenses are already enough to organize a cryptocurrency project or business. But the Estonian authorities decided to make even more attractive conditions – it is possible to pass licensing of cryptocurrency activity in the country within 1-2 months. Thus, Estonia is another EU country where you can safely engage in cryptocurrencies.
Malta – the island of the blockchain
Malta, creating one of the most soft law in relation crypt, in fact, invited to place in their jurisdiction to foreign cryptocurrency exchanges. It immediately reacted OKex, Binance, BitBay and others.
The wording Of the law on virtual financial assets and the status of the crypt – a digital medium of exchange, a monetary unit, a means of accumulation-are attractive.
Currently, Malta actively attracts financial cryptocurrency startups, holds major summits and is a member of the European Union. It seems that this small island has decided to transform itself from an ordinary tourist to a global cryptocurrency financial center. Until this is obtained.
Conclusion
As you can see, the world has not formed a unified approach to the regulation of cryptocurrency activities. From categorical denial to full acceptance geographically can be only a few kilometers (you only need to cross the border). At the same time, most undecided countries with the status of the crypt openly expect a single decision from the United States, where different States have their own approaches to regulation. If you participate in a crypto-currency project or trade in a crypto-currency, you should definitely choose those who are located in friendly jurisdictions such as Estonia or Malta as partners.
Kevin Russell Smith, CEO CryptoPi.Fund
