In January 2019, Law No. 30/2019 clarified that from 2019, income from the trade in “virtual currency” will be classified as “income from other sources”. In addition, there is a new sub-item, Article 116(2)(c), stipulating that income tax of 10% is levied only on the `positive difference between the sale price and the purchase price` (and not on the total amount received from a sale). In addition, profits of less than RON 200 per transaction that amount to less than RON 600 in a financial year are exempt from tax. [140] On January 8, 2014, the Minister of Financial Services and Finance of the Legislative Council turned to Bitcoin and stated, “Hong Kong currently has no legislation that directly regulates Bitcoins and other virtual currencies of a similar nature. However, our existing laws (such as the Regulation on Organised and Serious Crime) provide for sanctions against illegal acts involving Bitcoins, such as fraud or money laundering. [3]: Hong Kong According to the Library of Congress, “The central bank does not yet recognize cryptocurrencies as a means of payment. However, it is working on new regulation for retail payment services that introduces the concept of tokens that could be used for payment purposes. [28] A number of countries have or will soon introduce some form of cryptocurrency as a legal tender national currency. So, which countries undertake such a large economic enterprise? Bitcoin is arguably the most beginner-friendly cryptocurrency, and the Central American nation of Panama has taken clear steps to adopt Bitcoin as its national currency. In fact, the country drafted a law to make BTC legal just one day after the cryptocurrency officially launched in El Salvador. Although no laws have yet been passed, Panama is the most advanced country in the race for the second country to accept Bitcoin as legal tender.
Regardless, a growing number of governments are choosing to embrace digital innovation and play a role in the industry. At the same time, jurisdictions that oppose the emerging industry run the risk of being left behind. Ironically, these countries are already among the poorest countries in the world, and widespread raids on Bitcoin and cryptocurrency do not seem to produce favorable results to improve the situation. Quite the contrary; The adoption of cryptocurrency companies with favorable regulations offers a great opportunity to bring innovation, capital and tax revenue, and improve the standard of living of the entire population. There are liquidity and regulatory risks around the crypto market that a country assumes when it uses it as legal tender. Since the crypto market is highly correlated with the United States. Stock markets will be affected by the Federal Reserve`s policy changes on cryptocurrency prices. In December 2013, the Monetary Authority of Singapore reportedly stated that “this is a business decision in which MAS does not intervene to find out whether or not companies accept bitcoins in exchange for their goods and services.” [3]: Singapore on 5. In February 2021, the Central Bank of Nigeria issued a circular informing Nigeria`s financial institutions that after its January 2017 circular, trading in cryptocurrencies or facilitating payment of cryptocurrencies would remain prohibited and would result in a severe penalty. [19] Now, Cuban citizens can use cryptocurrency to make money transfers, and they can even be paid for their work in crypto. In addition to problematic transaction fees, more than 70% of El Salvador residents do not have a bank account (according to Statista), making it more difficult to receive remittances. Since cryptocurrency transactions don`t require a traditional bank account, people don`t need to have one open to access their funds from abroad.
In 2018, FINMA said it would take a “balanced approach” to the cryptocurrency industry, allowing “legitimate innovators to navigate the regulatory landscape”. As of June 2021, a record number of 100 exchange-traded products (ETPs) and crypto-structured products with a total value of CHF 4.6 billion had been offered on the SIX Swiss Exchange. [149] Cryptocurrencies, including Bitcoin, are not officially regulated in Pakistan; [92] [93] However, this is neither illegal nor prohibited. As of January 16, 2021, the State Bank of Pakistan has not authorized any person or organization to sell, buy, exchange and invest virtual currencies, coins and tokens. [94] There have been a number of arrests by the cybercrime wing of the Federal Investigation Agency (FIA) in connection with the mining of Bitcoin and other cryptocurrencies. These arrests were made for money laundering. [95] The Central Bank of Jordan prohibits banks, bureaux de change, financial companies and payment service providers from trading Bitcoins or other digital currencies. [72] Although he warned the public about the risks of bitcoins and they are not legal tender, bitcoins are still accepted by small businesses and merchants.
[72] This serves to prove that no government has the power to truly ban Bitcoin unless it bans the use of the Internet for the entire nation. For this reason, many people are still wary of trustless systems and rely instead on traditional banks. Ukraine`s leaders and supporters simmered on social media after Elon Musk tweeted a proposed peace plan that included Ukraine`s abandonment of Crimea. Shortly after El Salvador announced its bill to make bitcoin legal, a member of the Paraguayan Chamber of Deputies proposed a bill to legalize and regulate cryptocurrency in the South American nation. The same politician, Carlitos Rejala, plans to run for president in 2023, and part of his platform would be to make Bitcoin the official currency of the country. In early 2018, India`s central bank, the Reserve Bank of India (RBI), announced a ban on the sale or purchase of cryptocurrency for companies regulated by the RBI. [80] On August 19, 2013, the German Ministry of Finance announced that Bitcoin is now essentially a “unit of account” and can be used for tax and business purposes in the country, which means: that purchases made from it must pay VAT, as in the case of transactions in euros.
