We at Finrazor present list of countries and updates on the legality of cryptocurrencies, updated for the fourth quarter of 2018 (full list: https://finrazor.com/trending/country)
In 2018, the blockchain industry and the cryptocurrency sector gained a fair amount of publicity; from an all-time price high to a series of market crashes. As new forms of fundraising, enterprises, startups, and use cases built on the technology emerged governments have been working on overdrive to put order in the clamor, to standardize the industry, and to secure against fraud and other criminal acts.
Here is an updated list of how governments from different parts of the world progressed in its policies for the new industry for the last quarter of 2018.
Territories and Their Updates
Bitcoin is treated 'just like money', not subject to double taxation; debating a bill to apply AML to exchanges, will prosecute exchanges without a license.
UPDATE: The Australian Securities and Investments Commission (ASIC) will monitor the crypto markets and ICOs. Will create a policy for regulation subjecting cryptocurrencies to the same scrutiny as stock exchanges.
Statement concerning cryptocurrencies, but is discouraged because of operational risks.
UPDATE: Exchange operators are required to submit monthly reports to the RFB, Brazil's tax collector, on all operations related to crypto. Non-compliance will be fined.
Cryptocurrencies must comply with AML and KYC requirements
the Bank of Montreal (BMO) announced that it would ban its credit and debit card customers from participating in cryptocurrency purchases with their cards. This is following another banking ban in Canada from Toronto Dominion. Canadian government postpones release of final regulations for cryptocurrencies and blockchain August 28, 2018.
UPDATE: House of Commons Standing Committee on Finance (FINA) wants to register crypto to fiat transactions and establish a licensing unit similar to BitLincense in the US.
Barcelona's own cryptocurrency REC (Recurso Económico Ciudadano — Civic Economic Facility).
UPDATE: Government prospects blockchain for e-voting.
Central bank considers crypto regulation. 5000 merchants can now accept crypto payments.
UPDATE: The country's Finance Minister says crypto regulation draft bill is in progress. The country’s central bank, the Ministry of Finance, and the Financial Stability Board are working together for a fair framework for the industry.
Mining firms told to orderly exit business, ICOs banned, shut down domestic exchanges, blocked 124 offshore exchanges, Baidu and WeChat restrict or ban crypto related content.
Cyprus, France, Greece, Italy, Malta, Portugal, and Spain
UPDATE: Joined 6 other Southern European countries in signing an agreement for the advancement of DLT through promotion and legislation.
#Malta 🇲🇹 leads 6 #EU🇪🇺 countries (#France 🇫🇷 #Greece 🇬🇷 #Italy 🇮🇹 #Portugal 🇵🇹 #Spain 🇪🇸 and #Cyprus 🇨🇾) in signing joint declaration on further cooperation on #DLT #Technology 🤝 Malta also to host Southern #Mediterranean Summit on #DigitalEconomy next year pic.twitter.com/Brcw99qtlE— Government of Malta 🇲🇹 (@MaltaGov) December 4, 2018
E-residency program floats the idea of issuing crypto tokens but it will not be called a currency.
UPDATE: The country will revise AML laws which will tighten cryptocurrency regulation to prevent money-laundering.
Regulatory framework for crypto exchanges and blockchain companies. Supporting fiat wallets may be covered by DLT provider license. Acquiring additional electronic money institution license may not be required. Exchanges in Gibraltar will be subject to 10% corporate tax.
UPDATE: Gibraltar Financial Services Commission licensed the Gibraltar Blockchain Exchange.
Resolve bitcoin transactions. Hong Kong Securities and Futures Commission will continue to watch over the market.
UPDATE: Securities and Futures Commission (SFC) announced draft regulations for reducing risks in crypto investing.
Indian Law Commission to recognize cryptocurrency as a payment method.
UPDATE: The Finance Minister received panel recommendations on crypto regulations. The contents are not yet revealed. And the Ministry of Finance says 'private cryptocurrencies' are banned but using DLT is encouraged. The Reserve Bank of India says Bitcoin is not recognized in the country.
Central Bank of Iran will draft a framework for crypto. No final policy for legislating crypto mining yet. Preparing to start own national cryptocurrency.
UPDATE: Iran looks into blockchain to help grow their economy. Recognized mining as an industry. Will develop a national cryptocurrency.
In October legislation will come into force, defining virtual currencies as “financial assets” and mandating licensing for related services.
UPDATE: The Israel Tax Authority will go after cryptocurrency tax evaders.
Mandatory AML and KYC for exchanges; an exchange study group established.
UPDATE: Published new draft report on ICO regulations, self-regulation, 'deemed dealers', security measures, and addressed the problem of hacking. The Financial Services agency does not consider stablecoins as cryptocurrencies based on the Payment Services Act. The FSA grants JVCEA the right to self-regulate.
Cryptocurrency regulation under development.
UPDATE: Crypto regulations will be enforced by 2019 Q1 says finance minister.
Status: Legal with Limitations
Central bank attempted to ban bank transactions in bitcoin and other cryptocurrencies.
UPDATE: Union Bank of Nigeria tells citizens to take caution against cryptocurrency transactions and says cryptocurrencies are not legal tender in the country.
Cryptocurrency legalized and exchanges regulated by central bank.
UPDATE: A draft on cryptocurrency regulations could classify cryptocurrency exchanges as traditional trading platforms.
Focus on preventing scams; to increase scrutiny for token sales and mining.
UPDATE: The draft bill ‘On Digital Financial Assets’ will return to the reading stage for revisions. State Duma said current draft has no connections with crypto or digital tokens.
Monetary Authority of Singapore warned of the risks associated with using bitcoin in 2013.
UPDATE: The Monetary Authority of Singapore (MAS) completes a basic regulatory bill for the country's payment services which includes cryptocurrencies.
To increase oversight over exchanges; planning joint oversight with Japan and China over cryptocurrency investment.
UPDATE: Incoming Finance Minister Hong Nam-ki wants to tax crypto. And Kwon Dae-young of the financial innovation bureau says the department is trying to institutionalize crypto but harm done to crypt investors must be resolved first.
Swiss regulators friendliest in the world. Exchanges need to register with Swiss Financial Market Supervisory Authority.
UPDATE: The Swiss Federal Council will take a more relaxed approach to blockchain and crypto startups so that the country can growth with the industry and be the preferred destination for fintech and innovative startups.
Taiwan government is positive towards blockchain and crypto.
UPDATE: The country will strengthen AML policies aimed at crypto exchanges. Exchanges should be able to monitor and prevent illicit transactions.
The Petro is considered legal tender. President Marudo has the power to regulate the issuance and regulation of the Petro.
UPDATE: The Petro becomes legal tender in the country. Can be used to purchase goods and services.
Cryptocurrency cannot be accepted as payment for goods and services. State Securities Commission forbid industry firms from engaging in crypto related activities.
UPDATE: Authorities are unsure of how to implement new crypto regulations. Banned mining rigs but the Ministry of Industry and Trade opposes the ban due to loss of business for the country.
Cryptocurrency is not recognized as legal tender. Binance opens crypto-fiat exchange.
UPDATE: Planning and Finance Ministry completed a draft bill. Will present the draft to parliament for debate and approval.
Financial Conduct Authority warns on the risks due to the of lack of consumer protection.
UPDATE: Financial Action Task Force (FATF) recommends the UK to regulate cryptocurrency exchanges. On 19 December 2018, the UK’s HM Revenue and Customs published the tax rule Cryptoassets for Individuals for its citizens trading in or getting paid with cryptocurrency. Citizens are required to pay taxes including Income Tax, Capital Gains Tax, and Inheritance Tax.
Treasury classified bitcoin as a convertible decentralized virtual currency in 2013; a federal judge ruled that 'bitcoins are funds' in 2016. In June 2018, Supreme Court of the United States debated bitcoin future for the first time.
UPDATE: Two US congressmen who drafted the proposed bills released a joint statement saying the country is for the protection of consumers and crypto investors. The State of Ohio accepts BTC as tax payment. The Token Taxonomy Act, H.R. 7356 was introduced by two US Congressmen on 20 December 2018. The proposed act seeks to disconnect ‘digital tokens’ from securities and grant tax exemptions for crypto-to-crypto trade and individual retirement accounts (IRA).