As the trading of cryptocurrency has become very popular all around the world, there are some regulations that have been put in place as so to govern them and protect the traders from being misguided. Below are some of the regulations that have been put to guide the exchange of cryptocurrencies across the world.
In the United States, Cryptocurrencies are not considered as a legal tender since 2013 and the exchanges have been considered as money transmitters. The IRS considers it as property and has tax guidance for it. The regulation is different from state to state.
The Securities and Exchange Commission (SEC) has also indicated that it considers cryptocurrencies to be securities and that it was looking to apply securities laws comprehensively for cryptocurrencies.
In Canada the Cryptocurrencies are not also considered as legal tenders but the exchanges are legal, varying from province to province. The Canada Revenue Agency taxes them. The regulations are also inconsistent and The British Columbia Securities Commission registered the first cryptocurrency as an investment.
In Singapore the Cryptocurrencies are also not a legal tender and the Cryptocurrency exchanges are legal, with no registration required. Although cryptocurrencies are not considered a legal tender, Singapore’s tax authority treat bitcoins as goods and therefore applies the goods and services tax regulations.
In Australia, Cryptocurrencies are legal, and treated as property. The cryptocurrency exchanges is also legal and must be registered with AUSTRAC. In 2017, the Australian government declared that they were legal, especially bitcoin. They are also treated as property and are subject to Capital Gain Tax
In Japan Cryptocurrency is a legal tender and the cryptocurrency exchanges is also considered legal, and must be registered with the Financial Services Agency. Japan has been reported to be one of the progressive country when it comes to cryptocurrency trading. It recognizes bitcoin and other cryptos as a legal tender and they are taxed as miscellaneous income.
In South Korea, Cryptocurrencies are not a legal tender but the cryptocurrency exchanges are and must be registered with FSS. The exchanges are closely monitored. In South Korea, cryptos are neither considered as currencies nor as financial assets and the transactions are currently tax free.
In China the cryptocurrencies are not a legal tender and the exchange is also illegal. In 2013, The People’s Bank of China (PBOC) banned its financial institutions from handling Bitcoin transactions. And in 2017, it also banned ICOS and all domestic cryptocurrency. The crypto trading is not recognized in china and has very harsh reputation regarding crypto trading.
When it comes to India, cryptocurrencies is also not legal tender but the exchanges are effectively illegal, with regulations being considered. The government has also made it very hard for Indians to trade in the cryptocurrency market and anyone making profits from bitcoin must pay taxes in terms of capital gains.
In the UK the cryptocurrencies are also not a legal tender but the exchanges are and must be registered with FCA. There are no laws governing the crypto trading in the UK but the profits made from crypto trading are subject to capital gain tax.
In Switzerland the trading of cryptocurrencies is legal, and accepted as payment in some contexts. The exchange is also legal and regulated by Swiss Federal Tax Administration. The SFTA considers cryptocurrencies as assets and has a very remarkable stand towards the regulation of crypto trading.