Cryptocurrency is being used all over the world. Investors are getting interested in cryptocurrency investment. If we compare the rules on different terms, countries have separate regulations. Similarly to control and regulate transactions, profits, taxes, losses, and crimes, different countries have different regulations. These regulations help direct the flow and growth of a particular country through cryptocurrency.
Let’s discuss the regulations of cryptocurrency around the world by covering a few nations:
In India, it is being considered for the legal tender of cryptocurrency. A cryptocurrency exchange works with legal effects. Till-date, cryptocurrencies are not considered legal tender. The work process and conditions are very tough for the legal cryptocurrency exchanges. The clarity part is also missing based on tax. Many nations have better plans and even some of them have started implementations too. The Indian government is taking suggestions to decide or prepare a particular plan. According to a few suggestions, it is suggested to treat profits from cryptocurrency transactions as capital gains for tax.
Exchange regulations: Crypto exchange regulations in India are comparatively harsh. RBI has also banned regulated financial institutes and banks for all types of virtual dealings. As per the decision of landmark court on March 4, 2020, an unconstitutional ban was ruled. We may expect better plans and implements in the future.
Future regulations: If we talk about some indications by the Indian government there was hope in 2017-18 for less prohibitive regulations. But the condition is still not clear and the hope was reversed with the next recommendation by an inter-ministerial committee in 2019. The recommendation was for a blanket ban on cryptocurrency. Mining, generation, selling, holding, transfer, dispose of, issue, and more of cryptocurrency was proposed for prison. The one thing that indicates a small positive wave is a bill has yet not been present in the parliament. This is the reason why people in India believe that soon they will hear any positive regulation announcement for the cryptocurrency.
In the UK also, cryptocurrencies are not legal tender but the cryptocurrency exchanges are legal. The investors have to get their registration formalities done from FCA. This investment is not a legal investment but the procedures for investment are legal.
Exchange regulations: Financial conduct activities don’t have any special provision for cryptocurrency exchange. But according to FCA the crypto asset activities should follow the guidelines of regulations created in 2017, which were approved in 2019, and came to enforcement in 2020.
Future regulations: At the starting of the year 2020, the UK left the EU officially, but the rules of the EU are still followed by the country. So the future impacts can be estimated.
Cryptocurrencies are not legal just like other countries. The cryptocurrency exchange is legal but the registration with FSS is a must. In South Korea, cryptocurrency is tax-free but the authorities have a plan for future regulations.
Exchange regulations: The exchange regulations are very strict in this nation. Financial Supervisory Service is responsible for the overlook of further measures.
Future regulations: As per a bill, the virtual currencies were categorized as digital assets. Cryptocurrency markets are working under a legal framework. According to the bill, strict supervision by the AML/CFT will comply. A bill has got approval from the national policy committee but the consideration is awaited by the judiciary committee.
In the United States, cryptocurrencies are not treated as legal tender. The cryptocurrency exchanges are working legally but the rules may differ state-wise. A consistent legal approach is missing in the US.
Exchange regulations: Through a consideration Security and Exchange Commission has indicated treating cryptocurrencies as securities. A friendlier approach is noticed by the Commodities Future Trading Commission. CFTC has allowed the cryptocurrency to derivatives trade publicly.
Future Regulations: In the year 2020 there are some indications of changes in the regulations.
Cryptocurrencies are not legal but the cryptocurrency exchanges are legal. As per regulation, the exchanges must get registered with FIN TRAC. The regulation is in action from June 1, 2020. The cryptocurrencies are subjected to tax in Canada since 2013. The cryptocurrency treatment in Canada country is comparatively fair and proactive.
Exchange Regulations: At the federal level, cryptocurrencies are subject to treat as securities in the nation. But at provincial level, regulations are inconsistent. In Canada, exchanges are regulated similarly as a money services business. Slight recent changes in amendments are done for the crime and other aspects which are followed by Canadian exchanges of cryptocurrencies from June 1, 2020.
Future Regulations: Evaluations are in process by the exchanges and the government of Canada in various aspects. We may expect some more effective regulations later on.
The regulations are continuously evolving worldwide. It will take time for proper regulation, system, and AI set up. The crime rates are also a subject of risk so the changes in regulations will be in continuity in the future. Countries are adopting cryptocurrencies and several efforts show better plans and regulations with stronger security aspects in cryptocurrencies worldwide.