In preparation we used: Coingecko publications, Investopedia, WhiteBIT, Wikipedia information, statement of the first deputy head of the National Bank of Ukraine Ekaterina Rozhkova.
Content:
Which countries have legalized cryptocurrency?
Most countries in the world recognize the legality of cryptocurrency. According to the image portal CoinGecko, by the end of 2023 over 60% of states have legalized the use of digital currency. Among the leaders is the European sector.
However, the use of Bitcoin or other types of virtual currency is not regulated by law in all countries. The characteristics of cryptocurrency are anonymity and decentralization, which complicates the legal process.
Bitcoins are accepted as a form of payment Salvador. It was the first country to fully integrate cryptocurrency into the financial system. As of September 7, 2021, Bitcoin is a payment instrument with automatic conversion to the US dollar.
In 2022, the Central African Republic (CAR) recognized Bitcoin as an official payment method, but they postponed this decision in the spring of 2023. The reasons cited were high levels of poverty, problems with the Internet among the population and limited access to electricity.
The European Union developed and introduced in June 2023 the regulation of Markets in Crypto Assets (MiCA), which controls the issuance and provision of services related to crypto assets throughout the EU. The European Union recognizes Bitcoin and other cryptocurrencies as crypto assets.
It is not illegal to use Bitcoin within the EU, but the European Banking Authority notes that cryptocurrency transactions are outside its control and continues to warn to the public and businesses about the risks.
You can legally transact with cryptocurrencies in United States, Australia, Canada, Japan. These and other countries where cryptocurrency is legal have a tax system.
Yes, in States When selling or exchanging cryptocurrency, the investor must pay capital gains tax. The tax rate depends on the period of holding virtual money. Similar rules were introduced Canada.
THEN Great Britain Digital currency is treated like dividends and is subject to both capital gains tax and income tax depending on the transaction.
Germany it does not include capital tax on transactions with digital currency. Not subject to tax: long-term profits from the sale, exchange or consumption of cryptocurrency held for more than a year, annual income less than 600 euros and additional income less than 256 euros. In addition, you do not have to pay a fee when you buy cryptocurrency, store it or give it away.
Japan recognizes cryptocurrency as a legal means of payment. The country’s legislation allows virtual buying and selling currency and its exchange for other crypto assets. Crypto exchanges and crypto exchangers are subject to mandatory state registration. Digital currency companies pay a consumption tax on the sale of cryptocurrencies.
Where is cryptocurrency banned?
Several countries have banned the use of cryptocurrency altogether. There are several reasons for this:
- fear due to exchange rate volatility and lack of centralized control;
- cryptocurrencies are seen as a threat to national monetary systems;
- concern due to possible use to support illegal activities such as drug trafficking, money laundering and terrorism.
More than two dozen countries have banned digital currency entirely: Afghanistan, Algeria, Egypt, Bangladesh, Bolivia, Burundi, Cameroon, Chad, China, Congo, Ethiopia, Gabon, Iraq, Lesotho, Libya, North Macedonia, Morocco, Myanmar, Nepal, Qatar, Sierra Leone, Tunisia.
Therefore, the Chinese authorities believe that cryptocurrencies disrupt the functioning of the state’s financial system and are used in criminal activities and for money laundering. Although, despite the ban, 4.08% of the total population of China (58 million people) own cryptocurrency – the second place in the world.
In some countries, cryptocurrencies are not officially banned, but there are some restrictions that make them more attractive and convenient.
These can be restrictions on mining, transactions or payments, etc. There are some restrictions in Kazakhstan, Indonesia, Malaysia, Tanzania, Thailand, Israel, and Turkey.
Is it allowed to use cryptocurrency in Ukraine?
Conduct transactions with cryptocurrency in Ukraine it is not forbidden, but the rules for its use are not yet regulated.
In 2022, the law “On Virtual Assets” was signed, which should make digital currency completely legal. However, it will come into effect when changes to the Tax Code are adopted, especially regarding the regulations for cryptocurrency taxes. In 2023, two relevant bills were submitted to the RADA at the same time, but are still being considered.
In addition, the National Bank said that Ukraine, as a candidate for EU membership, intends to approve European standards for the regulation of crypto-asset markets to protect consumers. We are talking about the Markets in Crypto Asset Management (MiCA).
At the moment, the NBU does not consider cryptocurrency as a means of payment. First Deputy Head of the National Bank Ekaterina Rozhkova recalled the dangers of the digital currency market and gave an example of the situation in the United States, “when it turned out that cryptocurrencies that the right to be backed by corporate dollars without being backed by anything, and those are big risks.”
2024-05-08 05:00:00
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