While in some countries it can not be determined not only with the legal status of the crypto currency, but also with the fact that such a bitcoin is, regulators of other countries are working in this direction much more efficiently. For example, in a number of countries bitcoin has somehow been introduced into the legal field, equating to the calculated monetary unit, classifying as virtual currency, immaterial value, virtual goods and the like. Other countries, on the contrary, restrict or completely prohibit operations with crypto-currencies. So, trading bitcoins for dummies, let’s go.
Governments-opponents of cryptocurrency
Once, one of the world’s largest cryptornics, China, has been most widely known in recent years for its regulatory measures. So, in the country since September, 2017 officially carrying out ICO and activity of crypto-exchange exchanges are officially forbidden. Recently, local and foreign alternative platforms that provide exchange and trade in digital currencies were also banned. Currently, regulators insist on the termination of operations for the production of crypto-currency in the country. Because of the low cost of electricity, China has long been the world’s main mining center – it accounts for about three quarters of the total production of bitcoin. Not surprisingly, such plans of the authorities have greatly shaken the cryptornics.
The ban on operations with crypto-currencies also operates in several small countries, including Kyrgyzstan, Vietnam, Indonesia, Bangladesh, Nepal, Morocco, Algeria, Bolivia, Ecuador. Recently, the chief mufti of Egypt has prohibited trade in crypto currency. The same situation is with trading bitcoins in South Africa.
It is noteworthy that some governments have already managed to change their anger at mercy. For example, previously negatively-minded authorities in Malaysia are actively developing and discussing with the public bills on the regulation of the Crypto-currency. The same thing happens in Thailand. But the most revealing in this respect is the example of Nigeria. In January last year, the country’s central bank banned the implementation of crypto-currency transactions. However, during the year the regulator softened his position.
Limitations and regulation of trading bitcoins: UK, US and EU
In the US, crypto-currencies are treated as property and, accordingly, are taxed. At the same time, ICO tokens are regarded by the SEC in fact as securities. Thus, the organizers of the ICO in the States are required to comply with the regulator’s requirements.
The European Union has not yet reached the creation of a general legal and regulatory document on crypto-currencies, although the governments of the member states, in particular Germany and France, are actively calling for this. Nevertheless, the decision of the European court for October, 2015 concerning taxation is enough indicative for world practice. The judges ruled that bitcoin should be regarded as a means of payment, and therefore it is impossible to tax it. The ECB, in turn, classifies bitcoin as a convertible decentralized virtual currency. Nevertheless, at present a number of countries in Europe have ordered crypto-exchanges to verify users, and sometimes even request documents confirming the origin of the funds they invest.