We examined how the governments of different countries are solving the problem of control over the circulation of virtual assets
This fall, the Verkhovna Rada adopted in the second reading and as a whole the draft law "On virtual assets", which should legalize the cryptocurrency market in Ukraine. However, the provision of legal status to digital currency was postponed - the president vetoed the initiative. However, there is no unified approach to the regulation of cryptoassets in the world. Let's consider in more detail who is for and who is against.
USA
Despite the large number of cryptocurrency investors and blockchain firms in the US, the country has yet to develop a complete regulatory framework for virtual assets. The Securities and Exchange Commission generally treats cryptocurrency as a security, while the Commodity Futures Trading Commission classifies Bitcoin as a commodity, and the Treasury considers it a currency. However, crypto exchanges are subject to bank secrecy laws, anti-money laundering and terrorist financing laws.
United Kingdom
The United Kingdom of Britain views cryptocurrency as property, but not legal tender. The legislation obliges cryptocurrency exchanges to register with the UK Financial Conduct Authority and prohibits them from trading cryptocurrency derivatives. However, the regulator has introduced cryptocurrency-specific customer information requirements. In the country, investors pay capital gains tax on profits from cryptocurrency trading.
Japan
Tokyo is progressively approaching the regulation of cryptocurrencies, recognizing them, in accordance with the law on payment services, as property. Crypto exchanges in the country must register with the Financial Services Agency and fulfill their obligations to prevent and combat money laundering. Japan treats trading profits generated from cryptocurrencies as "miscellaneous income" and is taxed.
Singapore
The island nation classifies cryptocurrency as property, but does not give it legal tender status. The Monetary Authority of Singapore licenses and regulates exchanges under the Payment Services Act. In addition, the government taxes companies that regularly conduct cryptocurrency transactions.
Indonesia
The country demonstrates a unique approach to cryptocurrency - Jakarta first outlawed it and then legalized it. In January 2018, Indonesia banned all payment system and financial technology operators from processing virtual currency transactions. However, in 2019, the government issued regulations governing the trading of cryptoassets as commodities under the supervision of the Commodity Futures Trading Regulatory Agency. Today, any organization that trades cryptoassets as commodity futures must comply with the requirements of the legislation in the field of combating money laundering and terrorist financing.
Brazil
The country has developed a bill aimed at the legal definition of the status of cryptocurrencies. He, in particular, offers permission to freely issue, transfer and use virtual assets. In a document issued by the Brazilian Ministry of Finance, cryptocurrencies are recognized as a financial asset. Individuals and legal entities must notify the tax authorities of any cryptocurrency transactions in excess of R $ 30,000.
China
Despite the fact that China is one of the world's largest cryptocurrency markets, the Central Bank recently announced that all such transactions are illegal. The Chinese authorities consider virtual assets to be an unstable, speculative investment, as well as a way of money laundering. However, cryptocurrency trading has been officially banned in the country since 2019, but continued online through foreign exchanges. However, this time, government officials have promised to increase pressure on the market.
Efforts to ban Bitcoin, which is not controlled by governments and institutions, is viewed by many as an attempt by the authorities to deploy their own e-currency unhindered. The local regulator aims to become one of the first major central banks in the world to launch their own digital currency in order to control the transactions of their citizens.
Iran
The central bank, on the one hand, prohibits the trading of cryptocurrencies mined abroad, on the other hand, it encourages their mining within the country. Iran has offered cheap energy to licensed miners but requires that all mined cryptocurrencies be sold to the Central Bank. At the same time, unlicensed production absorbs more than 2 GW per day from the national grid, which leads to a power shortage. This forced the authorities to decide on a four-month ban on Bitcoin mining.
Russia
In July 2020, Russia adopted its first laws to regulate cryptocurrencies, recognizing them as taxable property. In addition, a law has come into force prohibiting government officials from owning any cryptoasset. President Vladimir Putin has repeatedly linked cryptocurrency to criminal activity, calling for more attention to cross-border transactions with it. The authorities plan to authorize the police to illegally confiscate cryptocurrency, probably received as a bribe.
]Salvador
In early summer, El Salvador hit the world's media after the authorities recognized Bitcoin as the official currency. Thus, most companies and service providers are required to accept it as payment. The value of bitcoin is pegged to the dollar, which has been the country's official currency since 2001. Now all financial liabilities in dollars, including taxes, can be paid with virtual assets. The country is also studying the potential of the volcano's energy for mining.
This fall, the Verkhovna Rada adopted in the second reading and as a whole the draft law "On virtual assets", which should legalize the cryptocurrency market in Ukraine. However, the provision of legal status to digital currency was postponed - the president vetoed the initiative. However, there is no unified approach to the regulation of cryptoassets in the world. Let's consider in more detail who is for and who is against.
USA
Despite the large number of cryptocurrency investors and blockchain firms in the US, the country has yet to develop a complete regulatory framework for virtual assets. The Securities and Exchange Commission generally treats cryptocurrency as a security, while the Commodity Futures Trading Commission classifies Bitcoin as a commodity, and the Treasury considers it a currency. However, crypto exchanges are subject to bank secrecy laws, anti-money laundering and terrorist financing laws.
United Kingdom
The United Kingdom of Britain views cryptocurrency as property, but not legal tender. The legislation obliges cryptocurrency exchanges to register with the UK Financial Conduct Authority and prohibits them from trading cryptocurrency derivatives. However, the regulator has introduced cryptocurrency-specific customer information requirements. In the country, investors pay capital gains tax on profits from cryptocurrency trading.
Japan
Tokyo is progressively approaching the regulation of cryptocurrencies, recognizing them, in accordance with the law on payment services, as property. Crypto exchanges in the country must register with the Financial Services Agency and fulfill their obligations to prevent and combat money laundering. Japan treats trading profits generated from cryptocurrencies as "miscellaneous income" and is taxed.
Singapore
The island nation classifies cryptocurrency as property, but does not give it legal tender status. The Monetary Authority of Singapore licenses and regulates exchanges under the Payment Services Act. In addition, the government taxes companies that regularly conduct cryptocurrency transactions.
Indonesia
The country demonstrates a unique approach to cryptocurrency - Jakarta first outlawed it and then legalized it. In January 2018, Indonesia banned all payment system and financial technology operators from processing virtual currency transactions. However, in 2019, the government issued regulations governing the trading of cryptoassets as commodities under the supervision of the Commodity Futures Trading Regulatory Agency. Today, any organization that trades cryptoassets as commodity futures must comply with the requirements of the legislation in the field of combating money laundering and terrorist financing.
Brazil
The country has developed a bill aimed at the legal definition of the status of cryptocurrencies. He, in particular, offers permission to freely issue, transfer and use virtual assets. In a document issued by the Brazilian Ministry of Finance, cryptocurrencies are recognized as a financial asset. Individuals and legal entities must notify the tax authorities of any cryptocurrency transactions in excess of R $ 30,000.
China
Despite the fact that China is one of the world's largest cryptocurrency markets, the Central Bank recently announced that all such transactions are illegal. The Chinese authorities consider virtual assets to be an unstable, speculative investment, as well as a way of money laundering. However, cryptocurrency trading has been officially banned in the country since 2019, but continued online through foreign exchanges. However, this time, government officials have promised to increase pressure on the market.
Efforts to ban Bitcoin, which is not controlled by governments and institutions, is viewed by many as an attempt by the authorities to deploy their own e-currency unhindered. The local regulator aims to become one of the first major central banks in the world to launch their own digital currency in order to control the transactions of their citizens.
Iran
The central bank, on the one hand, prohibits the trading of cryptocurrencies mined abroad, on the other hand, it encourages their mining within the country. Iran has offered cheap energy to licensed miners but requires that all mined cryptocurrencies be sold to the Central Bank. At the same time, unlicensed production absorbs more than 2 GW per day from the national grid, which leads to a power shortage. This forced the authorities to decide on a four-month ban on Bitcoin mining.
Russia
In July 2020, Russia adopted its first laws to regulate cryptocurrencies, recognizing them as taxable property. In addition, a law has come into force prohibiting government officials from owning any cryptoasset. President Vladimir Putin has repeatedly linked cryptocurrency to criminal activity, calling for more attention to cross-border transactions with it. The authorities plan to authorize the police to illegally confiscate cryptocurrency, probably received as a bribe.
]Salvador
In early summer, El Salvador hit the world's media after the authorities recognized Bitcoin as the official currency. Thus, most companies and service providers are required to accept it as payment. The value of bitcoin is pegged to the dollar, which has been the country's official currency since 2001. Now all financial liabilities in dollars, including taxes, can be paid with virtual assets. The country is also studying the potential of the volcano's energy for mining.
