Update: Legality of Cryptocurrencies as for the Beginning of the Year

Update: Legality of Cryptocurrencies as for the Beginning of the Year

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


Status: Legal

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.


Status: Legal

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.


Status: Legal

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.


Status: Legal

Barcelona's own cryptocurrency REC (Recurso Económico Ciudadano — Civic Economic Facility).

UPDATE: Government prospects blockchain for e-voting.


Status: Legal

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.


Status: Illegal

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.

UPDATE: Security token offerings (STOs) are illegal. The MInistry of Industry and Information Technology calls for the acceleration of the development of blockchain related standards.

Cyprus, France, Greece, Italy, Malta, Portugal, and Spain

Status: Legal

UPDATE: Joined 6 other Southern European countries in signing an agreement for the advancement of DLT through promotion and legislation.


Status: Legal

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.


Status: Legal

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.

Hong Kong

Status: Legal

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.


Status: Illegal

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.


Status: Legal

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.


Status: Legal

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.


Status: Legal

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.


Status: Legal

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.


Status: Legal

Cryptocurrency legalized and exchanges regulated by central bank.

UPDATE: A draft on cryptocurrency regulations could classify cryptocurrency exchanges as traditional trading platforms.


Status: Legal

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.


Status: Legal

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.

South Korea

Status: Legal

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.


Status: Legal

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.


Status: Legal

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.


Status: Legal

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.


Status: Legal

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.


Status: Legal

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.

United Kingdom

Status: Legal

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.

United States

Status: Legal

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).

Related news

Spain’s BBVA Freezes Hundreds of Chinese Customer’s Bank Accounts without Warning #BitcoinUserNotAffected

Hundreds of Chinese citizens took to streets of Madrid on Friday, waving Spanish and Chinese flags in protest against BBVA, accusing the bank of blocking their accounts. Spain’s second-largest bank apologized to the Chinese customers who are demanding their accounts to be unlocked. The protestors said they have been told their bank accounts have been blocked in compliance of money laundering regulations but insisted they had done nothing wrong. The bank apologized on Saturday but denied deliberate discrimination against Chinese customers, “We are deeply sorry for any inconvenience caused by our decision to block certain customers' bank accounts over the last few days,” said BBVA spokesman Álvaro Calleja in a statement who further added, “We are sensitive to these circumstances and we have rolled out the measures required to mitigate these impacts.” “For BBVA and for everyone that works at the bank, customers are at the heart of our activity, and we absolutely and unequivocally reject any form of unjustified discrimination.” The Chinese citizens marched to a BBVA office in Madrid with some carrying signs that read, “Stop banking racism,” and “Racist BBVA.” “They closed my account the first time in August, and again two months later,” told Ting Ting, a restaurant manager in Madrid to AFP. Last year, Spain beefed up its money laundering regulations and according to the spokesman for the Spanish banking association AEB, Jose Luis Martinez Campuzano, the law requires clients to give a series of personal details and background information to the bank regardless of their nationality. However, Dawein Ding, the vice-president of a Chinese radio station in Madrid who also works for the Chinese Association in Spain (ACHE), said banks like BBVA are making the process more complicated for Chinese citizens than for Spanish nationals. “For a Spaniard to open a bank account they just have to show their identification card, whereas Chinese citizens have to deliver much more paperwork such as evidence of their work life like payslips and contracts,” Ding said. Long Bitcoin, Short the Bankers This further provides another opportunity for Bitcoin adoption as Anthony Pompliano, the founder and partner at Morgan Creek Digital took to Twitter to share, “The Spanish bank BBVA has frozen the bank accounts of hundreds of Chinese without warning. The legacy financial institutions are doing more to help the adoption of Bitcoin than they realize. Long Bitcoin, Short the Bankers! In a separate event, recently Wells Fargo went offline for about a day and affected the online and mobile services while the ATMs went out of operation, causing a nationwide outage. Moreover, Mastercard and Visa, the two of the biggest US payment companies are preparing to raise the fees levied on US merchants for processing transactions from this April onwards. Meanwhile, the Bitcoin average transaction fee has been going downwards since June 2018, currently registering around $0.20, as per Bitinfocharts.
Bitcoin Exchange Guide

Understanding Bitcoin - April 5-7 - Malta

A one of a kind Conference by Bitcoin Developers to teach non-Developers how and why to use properly use Bitcoin and participate in the Trustless Decentralized Network: http://understandingbtc.com/ by @ToneVays https://twitter.com/ToneVays Website: https://ToneVays.com Audio Podcast: https://itunes.apple.com/us/podcast/the-tone-vays-podcast/id1390209454?mt=2 Please Support via Affiliate Codes: Trading View: http://tradingview.go2cloud.org/aff_c?offer_id=2&aff_id=4905&url_id=3 TorGuard VPN 50% off code & link = tone50: https://torguard.net/aff.php?aff=3782 See Regulation overview in each state here: https://www.carltonfields.com/state-regulations-on-virtual-currency-and-blockchain-technologies/ Useful Bitcoin Sites: Full Node Set Up: https://bitcoin.org/en/full-node Lightning Node Set Up: https://medium.com/lightning-power-users/windows-macos-lightning-network-284bd5034340 Mempool: https://dedi.jochen-hoenicke.de/queue/#1w Useful Charts: http://charts.woobull.com/ State Regulations: See Regulation overview in each state here: https://www.carltonfields.com/state-regulations-on-virtual-currency-and-blockchain-technologies/ Tone Vays is available for Corporate Consulting at the rate of 0.3 btc per hour. Please email Tone@protonmail.ch for additional info.
Tones Vays

India: Police Arrest Suspects in Alleged $14 Million Crypto Scam

India: Police Arrest Suspects in Alleged $14 Million Crypto Scam Law enforcement in Mumbai, India have exposed a group allegedly involved in a cryptocurrency scam that amassed an estimated 1 billion rupees (nearly $17 million), local media outlet The Times of India reports on Feb. 17. The case reportedly led to the freezing of several […] Cet article India: Police Arrest Suspects in Alleged $14 Million Crypto Scam est apparu en premier sur Bitcoin Central.
Bitcoin Central

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.