There is no doubt that we are in the midst of cryptocurrency evolution. Many countries around the world are beginning to understand the value that cryptocurrencies represent for the economy, and, in connection with this, establish laws governing it. However, each country has its own view on digital currency. Some people support it in every possible way, allowing them to use it as money, pay taxes, buy goods and trade on exchanges. In other countries, even mere ownership of a crypt can lead to imprisonment. And others remain aloof and generally do not seek to regulate the legal side of the cryptosphere, leaving it in limbo.
In order to clarify the situation on this issue, we examined the various points of view of certain countries.
Countries that have banned cryptocurrencies
At the moment, cryptocurrencies are widely distributed around the world. However, there are countries that see them as a danger and a threat to their economy. Let's consider some of them.
El Banco Central de Bolivia completely banned the use of cryptocurrencies in the country. For any actions related to them, a person will be arrested and put on trial. This is due to the fact that the use of cryptocurrencies in criminal operations has been noticed. And after the hidden financial pyramid, which invested in cryptocurrencies, was declassified, the Central Bank of Bolivia issued a statement in which it reminds the population of its country that the use of digital coins is prohibited in it.
In 2017, Nepal Rastra Bank banned all possible operations with cryptocurrency, as it poses a threat to the country's economy. His decision was confirmed by the arrest of about a dozen people who were allegedly involved in the management of digital currency trading exchanges in Nepal.
The Ecuadorian government has also banned all cryptocurrencies.
The national assembly of the country recognized bitcoin and altcoins as illegal, as the state project of electronic currency (Sistema de Dinero Electrónico) is being introduced. This innovation will be under the full control of the government, and will be directly related to the dollar (local currency). With this electronic money, citizens will be able to pay for individual services and make transfers to private individuals.
On the territory of the country, a law is in force according to which any activity with cryptocurrencies is prohibited, and penalties are provided for violating it. The ban is, strangely enough, connected with religion: it is believed that the crypt is not recognized by Islam. However, recently the Egyptian authorities are considering options for easing the law - are developing a bill that will allow licensed companies to conduct crypto activities.
In addition to countries that adhere to specific polar points of view, there are a number of countries that have maintained relative neutrality in this matter, that is, they do not support cryptocurrency and do not prohibit it at the legislative level. Let's look at some of these countries.
Chinese authorities praise blockchain technology potentialand cryptocurrencies, but their use is not approved and limited, because very often crypto appears in criminal acts. So in 2017, any transactions with cryptocurrencies in financial institutions, as well as in banks, were prohibited at the legislative level. However, private individuals can make transactions among themselves, in addition, it is legal to store the crypt in their wallets. In addition to restrictions for legal entities, there is a ban in the country on the organization and conduct of ICOs (attracting investors to the project through the sale of tokens that were received by accelerated emission). At the same time, everyone, the government is trying in every way to prevent users from mining and using the crypt freely. But, in view of the fact that there are a huge number of users in the country, the effectiveness of resistance is low. Therefore, at the moment, we are developing our own state cryptocurrency in order to take control of the situation. Be that as it may, this project calls into question the main principle of digital money - decentralization, and therefore it is not known how society will accept such a coin.
By analogy with China, in Colombia there are no restrictions on cryptocurrency transactions performed by individuals. But on the other hand, the Bitcoin and cryptocurrencies in general are not recognized by the government as a means of payment. Moreover, the authorities do not plan to do this in the future. Companies, like in China, cannot legally invest in, store and dispose of a crypt.
On the territory of the Dominican Republic, citizens can carry out all transactions with cryptocurrencies at their discretion, as they are not prohibited, but not allowed. The country's authorities consider only the national currency (peso) and the dollar as the only official and permitted means of payment, and no one is going to legalize cryptocurrency. This was said in a decree of the Central Bank of the country in 2017.
In an announcement in November 2016, the Russian Federal Tax Service declared cryptocurrency illegal. Everything seems to be clear here, however, despite this, people are allowed to buy, sell or trade virtual currencies at their own risk and without any restrictions. The government does not regulate, does not support and does not control the exchange of cryptocurrencies, but on the other hand, it does not prohibit use.
In the country, residents quietly without oppression use cryptocurrency, there are even statistics according to which one in ten in Ukraine owns coins. However, this is absolutely not regulated by law, there are neither allowing nor prohibiting laws. In this regard, just the other day (September 2019), the Minister of Digital Transformation of Ukraine made a proposal for the full legalization of cryptocurrencies in order to secure the rights of users and tax them.
Although Bitcoin is now 10 years old, in many countries there are still no explicit legal systems that restrict, regulate or prohibit cryptocurrency. The decentralized and anonymous nature of digital currencies posed a difficult challenge for governments, how to allow it to be used legally, but at the same time prevent criminal transactions. Many countries are still analyzing ways to regulate cryptocurrencies. As the popular saying goes, “how many people, so many opinions.” This also applies to countries, someone legalizes the crypt and supports it, while someone tries to avoid everything that is connected with it through a complete ban on the territory of their country.