Over the years, Bitcoin and other cryptocurrencies have risen to prominence. Since the rise in popularity, the scrutiny on cryptocurrencies is also increasing. Regulators around the world are trying to control the use of cryptocurrencies.
Although the popularity of cryptocurrencies is increasing among users, the stance on cryptocurrencies is different in different countries. While some countries, such as El Salvador, have legalized Bitcoin, other countries, such as China, have banned it entirely.
Although Bitcoin is not legal in several countries, it does not mean that it is illegal. Several countries, such as the United States, want to build a regulatory framework around cryptocurrencies. However, the million dollar question is who will take care of it. Let’s look at some of the countries and the legality of bitcoin and cryptocurrencies in general.
Australia is home to a number of cryptocurrency supporters, and the rate of adoption has been on the rise. The country legalized cryptocurrencies in 2017 and treats them as assets by imposing a capital tax on profits.
The country has not yet drawn up a clear regulation for cryptocurrencies. The country has neither legalized cryptocurrencies nor banned them outright. Residents can purchase up to $200 worth of crypto per month.
Canada is one of the first nations to form bitcoin legislation. The country accepts cryptocurrencies as a medium of exchange and regards bitcoin as a digital commodity. Depending on the nature of the transactions, the country imposes a tax on them.
China emerged as one of the largest crypto markets in 2021. However, the country has banned ICOs and crypto trading. The country has made it clear that any type of transaction involving bitcoin and other cryptocurrencies is illegal.
The first nation in the world to recognize bitcoin as legal tender was El Salvador. The nation’s government enacted a law making bitcoin legal tender in June 2021, and it came into effect three months later.
The country has a love-hate relationship with cryptocurrencies. In 2018, the country decided to completely ban cryptocurrencies by asking the Reserve Bank of India to publish a rule to ban banks from handling cryptocurrencies. However, the stance has now changed and the country has imposed a 30% tax and a 1% TDS on cryptocurrencies.
UK residents can buy and sell cryptocurrencies. Crypto is considered property and will be included in the tax bracket depending on the trade. The country also plans to launch its CBDC.
United States of America
Regulators in the US have maintained a special interest in cryptocurrencies. The Joe Biden administration even released federal reports to urge crypto regulation in September. The White House also recently released a regulatory framework for digital assets.
The research emphasizes that cryptocurrency miners should aim to reduce greenhouse gas emissions. It was also suggested that crypto miners may seek help from government entities such as the Department of Energy and the Environmental Protection Agency to implement their efforts.