Over the years, Bitcoin and other cryptocurrencies have risen to prominence. Ever since the rise in popularity, the scrutiny over cryptocurrencies is also rising. Regulators around the globe are trying to put a leash on the usage of cryptocurrencies.
Even though the popularity of crypto is rising among users, the stance on crypto is different in different countries. While some countries, like El Salvador, have made Bitcoin legal, other countries, like China, have outright banned it.
Even though Bitcoin is not legal in several countries, it doesn’t mean that it is illegal. Several countries, like the United States, want to build a regulatory framework around cryptocurrencies. However, the million-dollar question is who will look after it. Let us look at some of the countries and the legality of bitcoin and cryptocurrencies in general.
Australia is home to several crypto supporters, and the adoption rate has been on the rise. The country made crypto legal in 2017 and treats them like assets by imposing a capital tax on the gains.
The country hasn’t framed a clear regulation yet for cryptocurrencies. The country hasn’t made crypto legal, nor has it outright banned it. The residents are allowed to buy up to $200 worth of crypto per month.
Canada is one of the first nations to form a bitcoin legislation. The country accepts crypto as a medium of exchange and considers bitcoin as a digital commodity. Depending on the nature of 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 kind of transaction involving bitcoin and other cryptocurrencies is illegal.
The world’s first nation to recognize bitcoin as a legal tender was El Salvador. The nation’s government enacted a law making bitcoin a legal tender in June 2021, and it went into effect three months later.
The country has a love-hate relationship with crypto. In 2018, the country decided to outright ban crypto by requesting the Reserve bank of India to release a rule to ban banks from dealing with crypto. However, the stance has flipped now and the country imposed a 30% tax and 1% TDS on crypto.
Residents of the UK are allowed t buy and sell crypto. Crypto is considered property and it will fall under the tax bracket depending on the trading. The country is also planning to release its CBDC.
United States of America
Regulators in the USA have kept a special interest in cryptocurrencies. The Joe Biden administration even released federal reports to urge crypt regulation in September. The White House also released a regulatory framework for digital assets recently.
The research emphasizes that cryptocurrency miners should aim to reduce greenhouse gas emissions. It was also suggested that crypto miners can seek aid from government entities like the Department of Energy and the Environmental Protection Agency to put their efforts into action.