Crypto-industry has been one of the most controversial innovations and many countries have different attitudes or regulations regarding buying and selling crypto. If you have BTC worth of million dollars, you may find yourself in a not favorable situation if you live in a country, where the crypto-regulations are very strict or even banned.
If you live in India, your asset will be left without the opportunity to withdraw because the banks are no longer providing services to exchange crypto into cash. In China, you might even not be able not only to exchange crypto but get the Initial Coin Offerings (ICO) too. It is vivid that people all around the world are in different circumstances when it comes to buying and selling crypto. While others are having trouble with that, some countries are having open arms towards crypto.
If we take into consideration that Satoshi Nakamoto was of Japanese origin who invented BTC, it is no surprise that Japan is very loyal to the crypto-industry and in numbers, 10% of the total exchange of crypto, comes from Japan.
In 2017, Japan even recognized cryptocurrency as an asset and created The Japanese Virtual Currency Exchange Association which consists of several other organizations and they have the collective authority to pass and enforce regulations.
Switzerland even has a canton which is named after crypt – “Crypto Valley”. It was caused by the mitigation of the crypto regulations and law. The Swiss state railway is now even accepting payments with BTC.
In Singapore, bitcoin and digital currencies generally are viewed as goods and not as money. This means that the companies which are operating in this field, are paying only 7% in tax.
Luxembourg has one of the first EU domestic financial regulators to provide people with proper commentary and services regarding cryptocurrencies. They are treated as intangible assets and all the transactions or exchanges are free from VAT. (Value-added tax).
Not everyone would expect that tiny European island, Malta and its parliament would impose a pro-Bitcoin stance. It is even believed to be the inevitable future of money. The parliament passed new bills providing a framework for blockchain technology. Malta is one of the countries, where active development and advancements in the iGaming industry happened. iGaming, involves virtual poker, online casinos, gambling, slot games. The companies which are involved in this sector are creating games for casinos and since the popularity of BTC in this industry caused the increased number of Bitcoin casinos online, they started developing more crypto-oriented games to supply the high demand in the market. The iGaming sector always needs new ideas, fresh talent, exhilarating opportunities and follow up to date technology. Apparently the country shows no signs of being irrelevant and stays on top of it’s game regarding very modern fintech and other tech innovations.
There are some other islands that you might not know about their crypto regulations. They have a progressive pro-crypto stance and among them are Bigraltar, Bermuda, Vanuatu, Puerto Rico, Seychelles, and others. Vanuatu even has implemented payments with Bitcoins.
Why do countries have different regulations on cryptocurrencies?
Some of you might have a question about the different regulations all over the world and what is the reason, that some of them have welcomed the crypto-currency and some of them have even banned it.
First, let’s start with the fact that not the whole society agrees on what cryptocurrencies are and what they can be used for. For example, buying BTC has different reasons, such as keeping it for the future, having it as an asset, or others.
Since the regulations are up to the governments to impose or not, it depends on their perception of the crypto-industry. For example, in 2017 India was among the top crypto exchanges market, but the government was terrified due to the high demand and banned buying crypto in the country. Some of the governments are concerned about security issues and this is why they limit the usage of blockchain technology. However, in countries, which see the potential of cryptocurrency in the future, the regulations are pro-crypt and they even implement the cryptos as payment methods.
Crypto-industry is one of the most discussed markets all over the world. There are still lots of rumors regarding its advantages and disadvantages because not everyone has a clear knowledge of what it means and what it is used for. Countries, which have their focus on the development of this field are advancing in the technologies and have imposed the regulations, which are working in favor of those who are involved in the market. It is probable that once the general opinion will be agreed upon usage of the cryptocurrencies, countries which are limiting their exchange, might change their regulations. This is a matter of only several years because nobody would have imagined 10 years ago that today we would be talking about cryptocurrencies and blockchain.