Cryptocurrencies Regulation in Different Countries

  • November 25, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Cryptocurrencies Regulation in Different Countries

Subject – Science and Tech

Context – The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is listed for introduction in Parliament’s Winter Session

Concept –

  • The stance of countries and regulators has ranged from a total ban on these financial assets, to allowing them to operate with some regulations, to the other extreme of allowing virtual currency trading in the absence of any guidelines.

Country

Status

CANADATreats cryptocurrency like a commodity for purposes of the country’s Income Tax Act.
ISRAELDefines cryptocurrency as an asset and demands 25% on capital gains.
GERMANYQualify virtual currencies as “units of account” and therefore, “financial instruments”.
UNITED KINGDOMDoes not consider crypto assets to be currency or money.
USFederal government does not recognise cryptocurrencies as legal tender.
THAILANDDigital asset businesses are required to apply for a licence, monitor for unfair trading practices.
EL SALVADORApproved bitcoin as legal tender.
CHINATotal clamp down on both cryptocurrencies and service providers.
Cryptocurrencies Regulation in Different Countries Science and tech