With the rise in crypto usage, it has been incredibly difficult for many to keep up with the various rules and regulations for the various cryptocurrencies around the world. This article aims to provide you with some insight into the basic rules and differences around the globe.
There is currently a patchwork of global regulations and no uniformity of the laws that govern the establishment, usage, and profits made off cryptocurrencies, and this presents as a flaw in what has been a very profitable system.
A license is required in certain countries
Although the beauty and advantage of crypto has been seen as its independence from a central authority and banking system, with over 300 million crypto users worldwide, many national governments and international baking authorities have sought to regulate the sector.
Meaning that the cryptocurrency itself still needs a license to operate in most countries around the globe. Only in places such as Brazil, India, Chile, and Argentina is a license not required by the crypto. While in some Latin American countries like Bolivia, crypto has even been banned. It is important to know this so that you are always legitimate and within the law when trading in crypto.
Commonly accepted as a form of payment
Mexico, Argentina, Brazil, Venezuela, and Chile all accept most cryptos as a form of currency and accepted means of payment. In comparison, China won’t classify crypto as a form of legal tender and has, in fact, banned crypto exchanges from happening in the country. The state in China prefers to have strong control over any and all currency trading, and crypto is threatening as it is so discreet and hidden. Binance launched in China as one of the world’s largest crypto exchanges, only to have to move their headquarters to Malta or the Cayman Islands to avoid the Peoples Bank of China from cracking down on the crypto exchange.
Entertainment and online usage
The flexibility of bitcoin, though, allows you to be able to play at the bitcoin casino from wherever you are. As long as the casino accepts cryptocurrencies, then you can play anonymously. This is the one defining factor of crypto use that makes it so difficult to regulate. It is anonymous, and as such, how do the central banks know who has used it and for what.
Taxation legislation for cryptocurrencies?
The biggest difference across the globe in the application of taxation laws and regulations on crypto. South Africa and areas of South America are the only places in the world where the taxation laws include crypto. In the UK, it depends on what you have used the cryptocurrency to do as to whether the proceeds can be taxed or not.
The bottom line is that the cryptocurrency regulatory framework is still a work in progress and that if you are going to invest and work in this sector, then you will need to know the various regulations and differences in policy around the world.