While some countries categorically do not recognize cryptocurrency or introduce it into everyday life very carefully, others are fully implementing it in their financial system.
- El Salvador
- Czech Republic
In this country, the legalization of cryptocurrency took place in late 2017.
At that time, the law “On the digital economy” was issued. At the same time, the cryptocurrency market was exempted from taxes until 2049. Citizens of the country can store and change digital money, as well as buy and sell it. And transactions will not have to be declared. The Central Bank of Belarus launched an online virtual asset exchange service in 2020.
Here cryptocurrency assets are defined as private money.
They can be used to pay between commercial companies and banking structures. In this case, for all purchases paid in bitcoin, it is necessary to pay VAT. Cryptocurrency transactions themselves are not yet taxed. At the same time, Germany is one of the first EU countries, which legally regulated digital assets. It is legally allowed to issue, own and trade digital currency, as well as to mine it. At the same time, certain regulations apply to cryptocurrency issuance and licensing. In 2017, Germany officially recognized digital currency as a financial instrument. And now it is quite possible to pay with BTC.
Here, cryptocurrency became a legal form of electronic payments back in early 2014.
In 2016, the government passed laws that required miners to register for a license and required them to pay taxes.
Among the 27 countries of the European Union, Italy can be called the leader in the use of bitcoin in transactions.
According to Coinmap, more than 15% of all stores in the world that accept payment in crypto operate in this country. Also in Italy there are 39 cryptomats and a project that focuses on the development of the payment system in bitcoin. It is already actively replacing the euro in domestic payment transactions. The future prospect is still not entirely clear: in the end there will either be a completely new digital asset on the blockchain or there will be a bitcoin-based stabelcoin.
Here bitcoin and other digital assets are not legally considered a means of payment.
However, it is possible to pay for goods and services with cryptocurrency. And there are bitcoin ATMs operating in the country. Tax will have to be paid on the income received from investing in digital assets.
In this country, cryptocurrency is accepted as a full-fledged market instrument.
The Ministry of Finance has even developed a law with new provisions that regulate the circulation of digital currency. In addition, bills on the regulation of ICOs were developed. Also, cryptocurrency companies have been legalized here, and citizens of the country can use coins as a payment transaction.
Here cryptocurrencies were recognized as a digital asset back in 2013.
And in 2017, the government abolished VAT for all transactions involving the purchase and sale of bitcoin and other digital assets.
Here cryptocurrency was officially recognized in September 2021.
Moreover, it was equated with the dollar as a means of payment. And this despite protests and criticism within the country. Commercial organizations and other companies are actively introducing bitcoin as a form of payment for services and goods. And citizens can download the Chivo app, which the government specifically designed to promote the virtual currency. New users get a $30 bitcoin welcome bonus for installing it.
The United States legalized cryptocurrency back in 2017.
However, all altcoin and bitcoin transactions are taxed. Both local and federal taxes must be paid on income that was generated by mining, investing, or exchanging goods for crypto. Large cryptocurrency exchanges, including Poloniex, Bittrex and others, operate in the U.S.
In September 2021, Ukraine adopted the law “On Virtual Assets,” which spells out the regulation of transactions with virtual currency.
In addition, changes to the tax code, which will regulate the taxation of transactions with electronic assets, are being prepared.
Here to regulate the cryptocurrency market began back in 2017.
All cryptocurrency exchanges must be registered and licensed to operate. It is also necessary to submit special reports to the regulatory authorities on an annual basis. In the Philippines, any type of electronic currency has the status of a financial instrument, which can be used to make any type of payment.
Here, too, the circulation of cryptocurrency is allowed.
At the same time, the Central Bank of the country believes that operations with digital assets do not need to be licensed, and pay additional taxes, too. The only requirement of the country’s government is that owners of crypto-exchanges, bitcoin ATMs and other companies that exchange currencies for fiat currency must verify customers.
Parliament first started talking about regulating cryptocurrency back in 2013.
In 2016, the city of Zug began to accept bitcoin as payment for public services. And already in 2017, the first legal platforms for the development of cryptocurrency startups were created. This made the work of crypto-asset and blockchain companies much easier. Thanks to the country’s progressive legislation, crypto-business has become very popular here. In some regions, e-currency is being actively implemented in everyday life. For example, in Zug, bitcoins can be used to pay for utilities and other services since 2017.
This country is very progressive in terms of jurisdiction in the direction of cryptocurrencies.
Residents have a positive attitude to blockchain technology and are happy to accept digital assets. However, they do not equate them to traditional means of payment, but rather to alternative ones. The legal regulation of crypto is also high here.
The regulatory framework for cryptocurrency regulation here began to be developed back in 2017, after the fall of the Mt.Gox exchange.
At that time, traders lost about 850,000 bitcoins. Then, in the spring of 2017, the authorities officially recognized the digital currency as a means of payment, which can be used to pay for goods and services. However, bitcoin was not legally considered a currency until the spring of 2017. Then it was recognized as a legal means of payment, and it was no longer considered an asset. Cryptocurrency exchanges also have official status. They must be licensed and must comply with anti-money laundering laws. Japan can be called one of the key states in the development of digital coins. It is also home to the headquarters of the popular online service Bitcoin.org, which was developed by BTC blockchain creators Martti Malmi and Satoshi Nakamoto. Today Japan is one of the most liberal countries in the field of cryptocurrency regulation. Forbes magazine even wrote that it is “an advanced Bitcoin state.
We have listed the largest countries that are currently ready to innovate in the financial sector.
However, the situation is changing rapidly, and it is likely that there will be many more in the near future.