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

India Progressing on Crypto Regulation Amid Ban Rumor

The Indian government has been progressing on cryptocurrency regulation. A recent report from the Ministry of Finance confirms some recommendations. Meanwhile, local media reported Friday that a draft bill on the regulatory framework for cryptocurrencies is being circulated among relevant government departments. Also read: Indian Supreme Court Postpones Crypto Case at Government’s Request Ministry of Finance’s Confirmation The Ministry of Finance recently published a summary report of the government’s activities in 2018. “An inter-ministerial committee under the chairmanship of Secretary, Department of Economic Affairs with representatives from concerned departments has been constituted for considering all aspects related to virtual currencies and crypto assets,” the document begins to explain. The Indian government was supposed to submit a report containing the legal framework for cryptocurrency to the supreme court in March but the court adjourned without addressing the matter. The next hearing date is July 23 and the community expects this matter to be addressed at that time. The Ministry of Finance’s report reads: Various options for treating virtual currencies and crypto assets including banning/regulating are being examined by the committee. India Working With FATF The report also reveals that India’s Department of Revenue has been working with the Financial Action Task Force (FATF) on various aspects including cryptocurrency. India is a member of the FATF, an international body which sets standards and promotes the implementation of legal, regulatory and operational measures for combating money laundering and terrorist financing globally. The Department of Economic Affairs used to work with the FATF but the work was transferred to the Department of Revenue per Gazette Notification dated Nov. 9, 2017, the Finance Ministry detailed, noting: Department of Revenue has been actively involved in the working papers being developed by the FATF on various issues (such as virtual currency, proliferation financing among) which will act as guidance for the member countries. FATF’s Recommendations The G20 countries, including India, have reaffirmed their support for the FATF as “the global anti-money laundering, counter terrorist financing, and proliferation financing standard-setting body,” according to the FAFT report submitted to the G20 this month. The G20 also asked the FATF to clarify how its standards apply to virtual asset activities. Among other recommendations, the FATF replied: Jurisdictions should apply a risk-based approach to virtual assets, virtual asset financial activities, and virtual asset service providers. The FATF further stated that it will update the “Risk-based Approach Guidance on Virtual Currencies” by June for the G20 summit. This approach will assist “jurisdictions and the private sector, in implementing a risk-based approach to regulating virtual asset service providers, including their supervision and monitoring,” the FATF wrote. Rumor of a Ban Recommendation Local media reported Friday that the Indian government is in the process of discussing a draft bill on cryptocurrency. The Economic Times claims to have reviewed the minutes of a meeting of the government committee which includes representatives of the Department of Economic Affairs, the Central Board of Direct Taxes, the Central Board of Indirect Taxes and Customs, and the Investor Education and Protection Fund Authority. According to the publication, the minutes showed that the ministries were “of the view that already there is a lot of delay in taking action against cryptocurrency. There is an urgent need to ban [the] sale, purchase and issuance of cryptocurrency.” An unnamed government official claiming to know the details told the news outlet that the draft bill entitled “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019” has been circulated to relevant government departments for discussion. The publication, however, did not explain the “Regulation of Official Digital Currencies” part. In addition to this being a draft bill and information was based on anonymous sources, the news outlet emphasized that based on the feedback: A final law will be proposed to the next government that takes charge after elections at the end of May. This is also not the first time the media have reported that the Indian government is considering banning cryptocurrency based on anonymous sources. In December last year, Cnbc TV18 reported on a ban recommendation. However, another media outlet reported soon afterward that there was also a recommendation to legalize cryptocurrency with strong riders, leaving the public confused about what the recommendations actually were. What crypto regulation do you think the Indian government will finally implement? Let us know in the comments section below. Images courtesy of Shutterstock and India’s Ministry of Finance. Are you feeling lucky? Visit our official Bitcoin casino where you can play BCH slots, BCH poker, and many more BCH games. Every game has a progressive Bitcoin Cash jackpot to be won! The post India Progressing on Crypto Regulation Amid Ban Rumor appeared first on Bitcoin News.
Bitcoin News

Hot news

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