Legality of cryptocurrency by country or territory
[1] Whereas, in the majority of countries the usage of cryptocurrency isn't in itself illegal, its status and usability as a means of payment (or a commodity) varies, with differing regulatory implications.
[11] In 2013 the G7's Financial Action Task Force issued the following statement in guidelines which may be applicable to companies involved in transmitting bitcoin and other currencies, "Internet-based payment services that allow third party funding from anonymous sources may face an increased risk of [money laundering/terrorist financing]."
The committee has submitted its report but "several sub-committees are still working on the issue" according to the Director, Banking & Payments System Department at CBN, Mr. ‘Dipo Fatokun.
[citation needed] In December 2022, Brazil established a licensing regime for virtual asset service providers with the aim of legalizing crypto as a payment method.
[66][67][68][69] As of 2017, the Israel Tax Authorities issued a statement saying that bitcoin and other cryptocurrencies would not fall under the legal definition of currency, and neither of that of a financial security, but of a taxable asset.
[80] Finance minister Arun Jaitley, in his budget speech on 1 February 2018, stated that the government will do everything to discontinue the use of bitcoin and other virtual currencies in India for criminal uses.
"The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system," Jaitley said.
[87][88][89][90] Since then the investment in cryptocurrency is considered legitimate though there is still ambiguity about the issues regarding the extent and payment of tax on the income accrued thereupon and also its regulatory regime.
As of 16 January 2021, the State Bank of Pakistan has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of virtual currencies, coins, and tokens.
[96] There have been a number of arrests by the Cyber Crime Wing of the Federal Investigation Agency (FIA) related to the mining of bitcoin and other cryptocurrencies.
[101] In early 2018 the People's Bank of China announced the State Administration of Foreign Exchange led by Pan Gongsheng would crack down on bitcoin mining.
However, our existing laws (such as the Organised and Serious Crimes Ordinance) provide sanctions against unlawful acts involving bitcoins, such as fraud or money laundering.
"[3]: Hong Kong Starting in late 2022 government bodies including the Treasury Bureau and the HKMA announced they intended to embrace digital assets, and began work on a regulatory framework based on the idea of “same activity, same risks, same regulation”.
[3]: Taiwan On 31 December 2013, Financial Supervisory Commission (Republic of China) (FSC) and CBC issued a joint statement which warns against the use of bitcoin.
"[126] In December 2013, the Monetary Authority of Singapore reportedly stated that "[w]hether or not businesses accept bitcoins in exchange for their goods and services is a commercial decision in which MAS does not intervene.
The regulation doesn't prohibit owning or trading cryptocurrencies, although commercial banks have been cautioned against direct involvement in digital assets.
[14]: 30–31 Croatia's Financial Stability Council warned investors about the risks of virtual currencies, such as digital wallet theft and fraud, on 18 December 2017.
[14]: 33 Businesses and individuals who buy, sell, store, manage, or mediate the purchase or sale of virtual currencies or provide similar services must comply with the anti-money laundering law.
[137][138] On 19 August 2013, the German Finance Ministry announced that bitcoin is now essentially a "unit of account" and can be used for the purpose of tax and trading in the country, meaning that purchases made with it must pay VAT as with euro transactions.
[148] As of March 2015, an official statement of the Romanian National Bank mentioned that "using digital currencies as payment has certain risks for the financial system".
For legal entities, the Decree confers the rights to create and place their own tokens, carry out transactions through stock markets and exchange operators; to individuals the Decree gives the right to engage in mining, to own tokens, to acquire and change them for Belarusian rubels, foreign currency and electronic money, and to bequeath them.
According to BBC News, cryptocurrency mining "is particularly popular in northern areas of Kosovo, where ethnic Serbs do not recognise the state's independence and refuse to pay electricity bills".
[167] In 2017, the Central Bank of Russia and Rosfinmonitoring in their informational appeals have repeatedly warned Russian citizens that all operations with cryptocurrency are speculative and carry a high risk of loss of value.
[170] According to Bloomberg News and Meduza, the Federal Security Service convinced the Central Bank to ban cryptocurrencies in Russia, as they are used to finance the opposition and independent media.
[3]: Malta In 2017, the country's prime minister Joseph Muscat announced the approval of a national strategy to promote bitcoin and blockchain technology.
Muscat specifically addressed the bitcoin blockchain's ability to handle, store and process sensitive data in an immutable and decentralized ecosystem.
In 2016, the National Bank of the Republic of North Macedonia published a press release regarding an investigation it made into ONECOIN, and discouraged the citizens from investing in it since it was most likely a scam.
[3]: Belgium The French Ministry of Finance issued regulations on 11 July 2014 pertaining to the operation of virtual currency professionals, exchanges, and taxation.
[3]: Ireland The Commission de Surveillance du Secteur Financier has issued a communication in February 2014 acknowledging the status of currency to the bitcoin and other cryptocurrencies.
[199][200] In December 2013, the governor of the Reserve Bank of Australia (RBA) indicated in an interview about bitcoin legality stating, "There would be nothing to stop people in this country deciding to transact in some other currency in a shop if they wanted to.
