Cryptocurrency is increasingly gaining popularity each day and more people are tempted to integrate blockchain technology into their businesses. However, over a decade has passed and only a few countries have embraced cryptocurrency. Some have banned cryptocurrency while others have regulated it. So which countries have regulated cryptocurrency so far? We have listed them right here.
List of cryptocurrency regulated countries.
1. the United Kingdom
In the U.K. using cryptocurrency isn’t illegal; however, all crypto-asset-related activities have to first register with the UK’s Financial Conduct Authority. This is on the ground that the UK High Court recently recognized bitcoin and other crypto-assets as property under UK common law. Upon registration, crypto-asset businesses will be given the “Authorized Payment Institutions” license and are expected to comply with combating the financing of terrorism (CFT) and anti-money laundering (AML) norms under UK law.
2. Indonesia
Surprised? Don’t be. Yes, Indonesia is among the many countries that initially banned virtual currency transactions. This happened in January 2018. However, a year later, the Indonesian government deemed it fit to regulate crypto-asset trading as commodities under the watch of its Commodity Futures Trading Regulatory Agency. Like in the UK, businesses that get a license to trade crypto assets are required to comply with CFT/AML measures and also to report to the Indonesian Financial Transaction Reports and Analysis Center.
3. Australia
The Australian government is quite lenient towards the cryptocurrency industry. They’ve always had little or no fear of allowing their citizens to make use of virtual currencies. In Australia, cryptocurrencies will be treated like traditional money without subjecting it to double taxation.
4. South Korea
South Korea is one of the Asian countries that have regulated local cryptocurrency exchanges. This East Asian country regulates its cryptocurrency by using a “real-name system”. Any trader or exchange must register with a verified bank account before providing exchanging services. Bithumb, Upbit, and Korbit are currently providing this service in South Korea.
5. Canada
The CSA (Canadian Securities Administrators) in 2018 issued a notice clarifying that a business offering coins or tokens will be required to comply with securities law. In 2020, every crypto-business is required to register with the FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), comply with Canada money laundering law to implement the CFT/AML measures.
6. Germany
In Germany, individuals or businesses that trade virtual currencies are required to obtain approval from BaFin (The German Federal Financial Supervisory Authority). After amendments were adopted into Germany’s anti-money laundering rules, the cryptocurrency industry took a new turn. In 2020, the German government approved German banks and other regulated financial institutions to operate bitcoin and other cryptocurrencies on behalf of their clients.
7. Singapore
Singapore is another country that legalizes cryptocurrency trading. However, it is regulated by the Monetary Authority of Singapore under Singapore’s Payment Services Act, 2020. As such, cryptocurrency businesses are expected to obtain a license to operate a cryptocurrency exchange. Singapore is benefitting from cryptocurrency exchanges as more crypto exchange companies in India are migrating to Singapore.
NB: India is yet to regulate cryptocurrency.
8. Switzerland
Like Australia, the government of Switzerland has little or no issues with accepting cryptocurrency or blockchain technology. In Switzerland, the finance regulator classifies virtual currency as assets that need to be disclosed on the owner’s annual return. This has contributed to the handful of blockchain or cryptocurrency-related businesses in Switzerland, estimating $44 billion. By offering favorable conditions to crypto startups like low tax rates or tax exemptions, Switzerland aims to encourage crypto trading in the country.
Instead of banning cryptocurrency and losing from its enormous benefits, the aforementioned countries have introduced laws to regulate crypto trading which is aimed to manage money laundering activities and financial fraud. So far, India is losing gigantic crypto firms to Singapore – they should consider subjecting cryptocurrency businesses to their respective AML/CFT norms.
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