Cryptocurrency has become one of the most popular investments in the world. However, different countries have different rules in place when it comes to cryptocurrency. Some countries are more welcoming than others, and some have not made a clear decision yet. The following article explains how different countries are treating cryptocurrencies. If you are interested in crypto trading, it is imperative to know the position of your country.
Let us take a look at some of the countries and their rules in regard to cryptocurrency.
The Russian government has been working since 2011 to create a new legal framework for cryptocurrency. So far, the main regulation that is in place is about ICOs and not Bitcoin. There are regulations regarding how much money you can use to invest in an ICO and there are certain limits to prevent scams. Russia also has its own cryptocurrency called CryptoRuble. The currency will be launched on March 1st of this year and will be used by future state projects such as Ethereum-based smart contracts or registers, voting, tax collection, public services, etc. The currency will be held by the Central Bank of Russia and will be accepted by legal entities, individuals, or organizations.
Russia is supposed to have its own exchange where you can transfer your cryptocurrency into regular money. The Russian authorities see cryptocurrencies as a way for businesses to pay lower taxes. Russia also has some very good mining facilities that tend to produce around 5% of the world’s Bitcoin supply on average making it one of the biggest Bitcoin producers in the world.
The United States
In 2014, America had started paying more attention to cryptocurrencies since they saw how fast it was moving overseas and wanted to get involved themselves. In 2014, The US passed an anti-money laundering act where all exchanges needed proper government identification for accounts. This is one of the regions where cryptocurrency has not been fully accepted due to the fact that it is a decentralized financial system.
In 2017, the American Securities and Exchange Commission rejected a Bitcoin ETF but then in March 2018, they allowed it to happen. The US government is definitely warming up to cryptocurrency, thanks to secure platforms like the Bitcoin System app. However, they want to make sure that their citizens are safeguarded which is brilliant of them since there were several huge cryptocurrency hacks earlier this year.
Mars once had rivers before its water supply dried out later on in its life cycle. Cryptocurrency seems like mars when we look at how far along different countries are with technology. Even though some companies have been hacked and people’s money was lost, does not mean that there cannot be proper security set up for all exchanges using blockchain technology so nobody can hack into anything even if they wanted to.
China, on the other hand, made the news when they banned all ICO’s and asked their citizens to make sure that they do not participate in anything like this which is a genius move because there have been several cryptocurrencies created with the purpose of making quick bucks. China implemented the ban way before other countries thought about doing so and it looks like if you want to invest in an ICO, you will be looking at Chinese companies only.
China has made huge moves toward regulating cryptocurrency exchanges and restricting how people can invest using them. The government has also decided to forbid its citizens from trading on foreign exchanges. It looks like Crypto will thrive as usual in China.
It goes without saying that cryptocurrency is gaining traction all over the world. Most countries are working on policies and legal frameworks for regulating the industry.