The attitude to cryptocurrencies in the world is ambiguous. In some countries, projects using cryptocurrencies and blockchains are actively developed, in others, mining and operations with cryptocurrencies are prosecuted. More developed countries seek to adapt the legal framework for regulating the cryptocurrency market.
Cryptocurrency regulation in the United States
The regulation of cryptocurrencies in the USA is connected with the peculiarities of the state system. There are both federal laws and local state laws that can introduce their own rules for using cryptocurrencies. For example, in addition to the necessary licenses obtained from the main regulators. In the state of New York, cryptocurrency business owners are required to obtain a special BitLicense.
The main supervisor for financial regulation in the United States is the Financial Crimes Network. They has determined which companies should register as cash exchange operators.
California became the first state to legalize cryptocurrencies. For instance since 2015, there has been a law in the state that allows individuals and legal entities to conduct operations with currencies other than traditional. Now the United States owns the largest number of bitcoin ATMs in the world.
Cryptocurrency regulation in Japan
Japan is considered one of the leaders in the cryptocurrency market. Which was the first in the world to introduce regulation of cryptocurrency exchange activity. After the collapse of the infamous cryptocurrency exchange MtGox, the state organized an independent Commission on digital currencies in Japan.
In 2017, Japan recognized cryptocurrencies as a legal means of payment, equating virtual currencies with fiat.
Cryptocurrency regulation in Canada
The National Bank of Canada noted that cryptocurrencies do not fall under the definition of modern currencies. Their regulation should have certain specifics. The Canadian Center for Financial Operations Analysis and Reporting is responsible for the regulation of crypto sites.
In addition since 2015, the Senate Standing Committee on Banking has stated the best solution. That would be to monitor the development of the cryptocurrency market. However introducing regulation only when a need arises.
Canada ranks second in the number of crypto ATM. Government authorities have decided and are working to create a national virtual currency, which acts as a digital counterpart to the Canadian dollar.
The EU also has progressive views on the cryptocurrency market. Back in 2012, the European Central Bank issued a report indicating that cryptocurrencies cannot obey the same rules and regulations that were developed to regulate cash.
In Europe, the term “digital currencies” has become established, which is regarded as a medium of exchange.
The European Parliament’s Committee on Economic and Monetary Issues has decided that cryptocurrencies do not need to be directly regulated. Rules should be established to counter illegal money circulation. The final decision was to recognize cryptocurrencies as a means of making payments. The coins themselves should not be subject to value added tax.
Until 2017, the Chinese government imposed a ban on operations with cryptocurrencies in the country. Platforms are actively closing, engaged in electronic cash exchange. The first law that established the rules for regulating the cryptocurrency market entered into force on October 1, 2017. Digital currencies were defined as a form of ownership. Also, representatives of state bodies noted that the prohibitions did not concern cryptocurrencies. Trading floors that poorly complied with the requirements put forward.
In a separate administrative region of China – Hong Kong, cryptocurrencies were assigned the status of virtual goods back in 2013.
The Australian authorities, which are developing blockchain solutions for implementation in public services, are no less thorough in regulating the issue. One such service is ground transportation management. Mining is not subject to mandatory licensing, but is taxed in accordance with the rules of the law.
Taxation is regulated by the Australian Revenue Service. Cryptocurrencies are subject to the same taxes as fiat currencies, i.e. income tax and income tax. Legislation allows employers to pay wages to hired workers in cryptocurrency, of course, only with their consent.
The Republic of Belarus became the first country to fully legalize cryptocurrencies. The president of the republic at the end of 2017 signed a decree “On the development of the digital economy”. Which established the rules for crypto business in the state. The goal of the enterprise is to attract foreign personnel to develop blockchain solutions.
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