However, in the last couple of years, crypto regulations have been the center of attention for many jurisdictions and entities.
So let’s discuss crypto laws and regulations!
1. United States
The United States is different from other jurisdictions when it comes to laws and regulations since they change in each state.
In the United States, crypto exchanges are in a grey area regarding the law. In 2018, The SEC declared cryptocurrencies to be securities. However, The CFTC labeled crypto-assets as a commodity and this enables crypto coins to be traded publicly.
In 2017, the International Revenue Service announced that crypto coins are considered property and will be taxed accordingly. Crypto-assets owned by a US citizen for more than one year will be taxed.
In the state of Arizona, innovators in the spheres of blockchain, crypto-assets and fintech have reduced regulatory burdens.
On the other hand, the laws around crypto mining are much simpler. In the states/cities where cryptocurrency is illegal, you can’t mine and vice versa.
The US citizens on the other hand are more than accepting cryptocurrency and blockchain-based networks such as Stellar. If you’d like to learn more about Stellar, take a look at XLM news.
In 2014, the Russian authorities began warning citizens against participating in crypto transactions.
However, they didn’t take any legal action until 2016, when a bill was proposed by the Ministry of Finance to ban crypto mining. In October of the same year, the bill’s progress was suspended.
In March 2018, in the State Duma, a bill regarding cryptocurrency was passed. In this bill, it was stated that cryptocurrency mining will be treated like any other business and will be
taxed in case the miner surpasses the 3 month limit of energy consumption.
Participation in ICOs is allowed only for qualified investors or in special cases established by the Central Bank of Russia. Crypto coins in Russia are classified as property, not legal tender and can not be traded for rubles or other fiat currencies.
In Russia, income from crypto coins should be recorded and is taxed by 13%.
In September 2017, The People’s Bank of China, along with six other government regulators, announced ICOs to be illegal in China due to large risks.
According to this announcement, the crypto coins that are somehow related to ICOs will not be comparable to fiat money. Afterwards, domestic cryptocurrency exchanges, platforms used for crypto coin trading, were banned too.
The usage of crypto coins by banks has been banned in China since 2013. In 2018, the People’s Bank of China also enforced regulations regarding foreign crypto exchanges, making them illegal. In addition, the country’s government is interested in setting international crypto guidelines and regulations.
In France, crypto-assets are still highly unregulated. Laws regarding blockchain passed by the French government in 2016 and 2017 allowed blockchain technology to be used in a variety of industries. Two of the authorities in the country came forward with a statement declaring that crypto coins aren’t regulated and, hence, are unsafe. Crypto coins, such as Bitcoin, are considered financial instruments in the jurisdiction.
France, along with Germany, requested a discussion about crypto-assets during the next Group of Twenty Summit.
Crypto regulations in most countries are still uncertain and many are trying to come out with harsher ones. Yet, the number of crypto traders is increasing yearly. Do you want to be a successful crypto trader? If so, check out this complete guide on crypto portfolio management. Make trading easier for you!