Pi Capital
Date of publication: 27 September 2019
Cryptocurrency regulation in different countries of the world
Today I wanted to talk about Cryptocurrency regulation in different countries of the world
Today I wanted to talk about Cryptocurrency regulation in different countries of the world

The launch of the cryptocurrency phenomena started with the launch of Bitcoin in January 2009 and since that time the market has grown exponentially in every way, albeit with inevitable peaks and troughs along the way. During that time the world has developed a very contradictory view of cryptocurrency and all aspects of their use: fr om 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, crypto owners, exchanges, investors, and users, are looking for "quiet coves" or “safe havens” for their projects and personal finances around the world. Especially popular are countries that have already decided on the status of the crypto 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 crypto in the second quarter of 2019.

So Where have cryptocurrencies been accepted?

In Germany, Bitcoin is recognized as a means of payment, which means that it is subject to the same taxes as when using Euro or other fiat currencies.
In Sweden, the status of cryptocurrencies has been defined and it is possible to conduct business using them, whilst in Australia, digital currency can be used as a medium of exchange.
In the USA, cryptocurrencies are allowed, but the government continues to determine the future and the point has not yet been fully decided. The decision can yet be made in favor of prohibition or, alternatively, full or partial legalization. Many other countries are looking at the United States and waiting for their decision. It is also important that the USA comes to a decision for the whole country and not on a state by state approach.
In Canada, tokens are accepted and, therefore, all transactions with tokens are considered to be nothing but barter operations, whilst in Japan cryptocurrencies are a generally recognized means of payment, and they can be used on a par with the yen.
In Britain, there are progressive laws and it is required to conduct an examination of all clients of cryptocurrency services and projects (that is, using full Know Your Customer and Anti Money Laundering procedures), as well as to report suspicious transactions. Here, the status of the crypto is determined by the type of asset.

In Venezuela, the economic situation and the massive depreciation of the national currency, as well as the difficult political regime, have made crypto legal and they have established their own nationally recognized cryptocurrency "Petro".
In Switzerland, there is so much respect for individual rights that the crypto at the legislative level was adopted as traditional money. There are statements by Ministers on the establishment in the country, as a "cryptonation".
Small countries including Estonia, Malta, Belize, and Gibraltar, as well as larger ones such as Nigeria, and South Africa all welcome the conduct of financial and technical projects on their territory, and provide minimum requirements and deadlines for the launch of cryptocurrency projects.

And where are cryptocurrencies more questionable?

In China, it has been banned fr om trading cryptocurrencies and having exchanges since September 2017. The boycott caused a large flurry in the crypto community. However, the country has not banned the technologies behind cryptocurrency and is actively developing technologies and new developments in the field of blockchain. However, the population of China is actively using the crypto despite the boycott.
In South Korea, against the background of large-scale fraud with digital currencies, the government decided to impose serious restrictions on the treatment of the crypto. Back in early 2018, the country was in the top three in terms of the activity of using cryptocurrencies but the new restrictions have curbed this.
In 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 positive. The law "on digital financial assets", which will reflect all aspects of the use of the crypto is planned to be approved later in 2019.
In Singapore, their approach is one of progressive cryptocurrency regulation. There are restrictions on speculation, and the Central Bank has introduced a procedure for mandatory licensing of cryptocurrency activities.
In Ghana, there is perhaps the clearest position of all as they have the 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. There are two types of licenses: the first is for a provider of a cryptocurrency exchange (a Cryptocurrency Exchange Provider License – this allows for cryptocurrency to Fiat, or Fiat to crypto, and the exchange of one cryptocurrency to another); the second is for a provider of the electronic wallet (a Wallet Service Provider License –this 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. As such, Estonia is another EU country wh ere you can safely engage in cryptocurrencies.

Malta – the island of the blockchain

Malta has created one of the softest laws in relation to crypto’s, and have invited many foreign companies to establish cryptocurrency exchanges there.  OKex, Binance, BitBay and others have been amongst those that have already established here. The wording of the law on virtual financial assets and the status of the crypto - 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 destination to a global cryptocurrency financial center. 

In 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 can be only a few kilometers geographically by crossing from one country to another. At the same time, most of the undecided countries are clearly awaiting a single decision from the United States, wh ere at present different States have their own approaches to regulation. If you participate in a cryptocurrency project or trade in a cryptocurrency, you should definitely choose those who are located in friendly jurisdictions such as Estonia or Malta as partners.

Kevin Russell Smith

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