Cryptocurrency has gained a lot of popularity over the years. It is accepted as an investment or a currency for many people and businesses. Also, it has attracted governments’ notice to adopt it with regulations. There are no international regulations on cryptocurrency, but there should be soon, as it gets more adapted across the world.
Some countries have given regulations to govern exchanges through crypto, and we will learn about the different rules some of these countries have to regulate crypto.
The United States
The USA has no comprehensive regulations on crypto activities. You can trade as you want in the USA, but different departments categorize crypto differently, and the rules on this categorization affect crypto activities. The financial crimes enforcement network says crypto are money transmitters. The internal revenue service categories it as digital property, and the Securities and Exchange Commission (SEC) says it is securities.
The United Kingdom
Most regulations on crypto in the UK are based on terrorism and money laundering. The business that deals in cryptocurrency must register with the FCA and must comply with the crypto asset’s regulations. You can easily buy and sell crypto in the UK with free access, but the transaction must not be used to fund terrorism. You can invest your bitcoin with FCA registered business like BitQL UK and make a good profit on your bitcoin.
Singapore is the most forefront country in technology advancement. As crypto is a new kind of tech, they had a positive attitude to it. So, with the adoption of it, Singapore signed Cryptocurrency Regulation in 2020 and will accelerate its adoption and be significantly regulated.
Cryptocurrency is treated just like a property, and it is categorized under the Capital Gain Tax. It is legal in the county to trade cryptocurrency. Australia has some regulations by the Australian Transaction Reports and Analysis Centre (AUSTRAC), which was signed into law in 2018.
Japan being one of the open to new things country legalized cryptocurrency since 2017. Trading can be carried out freely, and the financial services agency governs all the trading platforms present to use in Japan. So crypto is regulated for use in Japan.
As with their neighbors in the USA, crypto is legalized in Canada, but it is classified as a business income here as to other classifications in the US. As said of Canadians to be friendly, they exhibit it to crypto as they positively adopt it. All the organizations dealing or handling cryptocurrency has to be registered under the Canadian government.
Things are a bit interesting concerning crypto in South Korea as cryptocurrencies are not legal, but exchanges that handle them are. However, cryptocurrency transactions are expected to be taxed very soon here. There is a bit of regulation here, and more are expected soon.
Mexico has incorporated crypto into its financial system and made a new Fintech law to regulate it. This Latin American country is the only one in this region to have levied regulations about cryptocurrency effectively. They have started accepting the adoption since 2018.
One of the most technology-driven countries in the world, Germany has a favorable adoption of crypto. They are one of the few governments that have recognized crypto as a payment option you can use. So, it is highly regulated, and anyone who wants to perform transactions using crypto has to be approved by the Financial Supervisory Authority.
With more adoption of cryptocurrency, there will be more and more regulations to try and control and balance out the use of cryptocurrency. With all the laws, one thing is for sure right now; cryptocurrency is here to stay.