While some countries categorically do not recognize cryptocurrency or introduce it into everyday life very carefully, others are fully implementing it in their financial systems.
Belarus
In this country, the legalization of cryptocurrency took place at the end of 2017. That’s when the government issued the “On the Digital Economy” law. At the same time, the cryptocurrency market was exempted from taxes until 2049. Citizens of the country can store and exchange digital money, as well as buy and sell it. Crypto transactions don’t have to be declared. In 2020, the Central Bank of Belarus launched an online service to exchange virtual assets.
Germany
Here, cryptocurrency assets are defined as private money. They can be used in transactions between commercial companies and banking structures. In this case, for all purchases paid in Bitcoin, it is necessary to pay VAT. Cryptocurrency transactions themselves are not yet taxed. At the same time, Germany is one of the first EU countries that legally regulate digital assets. It is legally allowed to issue, own and trade digital currency, as well as to mine it. At the same time, certain regulations apply to cryptocurrency issuance and licensing. In 2017, this country officially recognized digital currency as a financial instrument. Now it is possible to pay in Bitcoin virtually anywhere in Germany.
Spain
Here, cryptocurrency became a legal form of electronic payments back in early 2014. In 2016, the state passed laws that required miners to register for a license and required them to pay taxes.
Italy
Among the 27 countries of the European Union, Italy can be called the leader in the use of Bitcoin in transactions. According to Coinmap, more than 15% of all the stores in the world that accept payments in crypto operate in this country. Also in Italy there are 39 cryptomats and a project that focuses on the development of the payment system in Bitcoin. It is already actively replacing the euro in domestic payment transactions. The future prospect is still not entirely clear: eventually, there will emerge either a completely new blockchain-based digital asset or a Bitcoin-based stablecoin.
Canada
Bitcoin and other digital assets are not legally considered a means of payment here. However, it is possible to pay for goods and services with cryptocurrency. There are several Bitcoin ATMs operating in this country. Taxes will have to be paid on the income earned from investing in digital assets.
Malta
In this country, cryptocurrency is accepted as a full-fledged market instrument. The Ministry of Finance has even developed a law with new provisions that regulate the circulation of electronic currency. In addition, bills on the regulation of ICOs were developed. Also, cryptocurrency companies have been legalized here, and citizens of the country can use crypto coins as a means of payment.
Norway
Here, cryptocurrencies were recognized as a digital asset back in 2013. And in 2017, the government abolished VAT for all transactions involving the purchase and sale of Bitcoin and other digital assets.
El Salvador
Here, cryptocurrency was officially recognized in September 2021. Moreover, it was equated with the dollar as a means of payment. That happened despite all the protests and heavy criticism within the country. Commercial organizations and other companies are actively introducing Bitcoin as a form of payment for services and goods. The citizens can download the Chivo app that the government specifically designed to promote the virtual currency. New users get a $30 worth Bitcoin welcome bonus for installing it.
The USA
The United States legalized cryptocurrency back in 2017. However, all altcoin and Bitcoin transactions are taxed. Both local and federal taxes must be paid on the income that was generated by mining, investing, or exchanging goods for crypto. There are major cryptocurrency exchanges operating in the U.S., including Poloniex, Bittrex and others.
Ukraine
In September 2021, Ukraine adopted the law “On Virtual Assets” that spelled out the regulation of transactions with virtual currency. Moreover, changes to the tax code, which will regulate the taxation of transactions with e-assets, are being prepared.
The Philippines
Here, they began regulating the cryptocurrency market back in 2017. All cryptocurrency exchanges must be registered and licensed to operate. It is also necessary to submit special reports to the regulatory authorities on an annual basis. In the Philippines, any type of electronic currency has the status of a financial instrument that can be used to make any kind of payment.
Czech Republic
Here, too, the circulation of cryptocurrency is allowed. At the same time, the Central Bank of the country believes that transactions with digital assets do not need to be licensed or taxed. The only requirement of the country’s government is that the owners of crypto exchanges, Bitcoin ATMs and other companies that exchange currencies for fiats must verify their customers.
Switzerland
The country’s parliament first started talking about regulating cryptocurrency back in 2013. In 2016, the city of Zug began to accept Bitcoin as a means of payment for public services. Already in 2017, the first legal platforms for the development of cryptocurrency startups were created. This made the work of crypto-asset and blockchain companies much easier. Thanks to the country’s progressive legislation, crypto business has become very popular here. In some regions, e-currency is being actively implemented in everyday life. For example, in Zug, Bitcoin can be used to pay for utilities and other services since 2017.
Estonia
This country is very progressive in terms of jurisdiction in the direction of cryptocurrencies. Its residents have a positive attitude to the blockchain technology and are happy to accept digital assets. However, they do not equate them to the traditional means of payment and view them as alternative ones. The legal regulation of crypto is also quite well-developed there.
Japan
In Japan, the regulatory framework for cryptocurrency regulation began to develop back in 2017, after the fall of the Mt.Gox exchange. At that time, traders lost about 850,000 Bitcoins. Then, in the spring of 2017, the authorities officially recognized the digital currency as a means of payment that can be used to pay for goods and services. However, Bitcoin was not legally considered a currency until the spring of 2017. Then it was recognized as a legal means of payment and was no longer considered an asset. Cryptocurrency exchanges also have an official status. They must be licensed and must comply with the anti-money laundering laws. Japan can be called one of the key states in the development of digital coins. It is also home to the headquarters of the popular online service Bitcoin.org that was developed by the blockchain creators Martti Malmi and Satoshi Nakamoto. Today Japan is one of the most liberal countries in the field of cryptocurrency regulation. The Forbes magazine even called it an advanced Bitcoin state.
Brazil
In Brazil, Bitcoin can be used as a means of payment and an investment asset. A law that granted it that status was signed by the president in 2022.
The head of the state approved the document proposed by the Congress without any changes. It will go into effect 180 days after it was signed. The law describes Bitcoin as a digital representation of value.
The Bank of Brazil is expected to be responsible for the use of the first cryptocurrency as a means of payment. The Securities and Exchange Commission will take responsibility for overseeing digital gold as an investment asset.
We have listed the largest countries that are currently ready to innovate in the financial sector. However, the situation is changing rapidly, and it is likely that there will be many more in the near future.
