In the past few decades, there has been a growing interest in cryptocurrency. As cryptocurrencies like Bitcoin become a popular way of making transactions and investments, the lack of government regulations is becoming clear. Most governments are still catching up on bitcoin, so regulations are being frequently updated. Right now, there is no international standard on how to deal with cryptocurrencies. This guide explains how they are treated in various locations.
China – China has a fairly harsh outlook on cryptocurrency. It is not considered to be legal tender, and no exchanges are allowed. This makes cryptocurrency trading illegal, and the government plans to crack down on private trading organizations.
European Union – Due to European Union regulations, no member state in the EU is capable of creating its own currency. This means that the likelihood of cryptocurrency becoming legal tender is fairly low at the time. However, cryptocurrency exchanges are allowed in most member states of the EU.
Japan – Half of all bitcoins are traded in Japan. This nation is a big market for bitcoin because it is a legal tender. As long as exchanges are registered through the Japanese Financial Services Agency and carried out through licensed companies, bitcoin is seen as a legal form of money. Since bitcoin is regulated heavily here, it is seen as a fairly reliable place to get involved with cryptocurrency markets.
Switzerland – Switzerland is known as being one of the friendliest places to deal with cryptocurrency. It is legal tender in the nation, and exchanges are also legal. There are clear guidelines in place for dealing with cryptocurrency thanks to the Swiss Financial Market Supervisory Authority.
United Kingdom – Though cryptocurrency is not legal tender in the United Kingdom, it is still seen as valid form of investment in the region. Exchanges are legal as long as the register with the UK’s Financial Conduct Authority. This means that crypto exchanges have to meet some rigorous anti-money-laundering and counter-terrorism regulations.
United States – The United States is somewhat divided because different states have different policies for cryptocurrency exchanges. According to federal agencies, cryptocurrencies are not a legal tender. Instead, the Securities and Exchange Commission says it is a security while the Commodity Futures Trading Commission defines it as a commodity.