Various countries have dealt with cryptocurrency in their own unique ways. Some countries have regulated digital currencies by enforcing different laws while in other countries the use of cryptocurrency is either uncertain or developing. In this article, we will highlight the countries that have proposed to regulate cryptocurrency.
Countries Proposed To Regulate Cryptocurrency
1. USA
When it comes to cryptocurrency adoption, the United States is among the global leaders. Like Australia, the US government has kept an open mind about cryptocurrencies. However, listing the United States of America in this content is a little awkward. Here’s why. Some states in the United States have regulated cryptocurrencies while others are proposing laws to regulate. This is because the laws regarding crypto differ from state to state as the regulators have different opinions as to how cryptocurrencies should be managed or handled.
For instance, the United States government has classified cryptocurrencies as Money Services Business (MSB). The country’s FinCEN (Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department has categorized cryptocurrencies as “money transmitters”, hence, bounding them by certain laws/legal terms. FinCEN has issued a draft law requiring digital currency operators to maintain records and verify the customer’s identity in any transaction involving digital assets. Crypto investors have the choice of purchasing not only bitcoin but also other digital assets across the country. Also, the IRS (Internal Revenue Service) has classified crypto assets as value and property, thus digital currencies are taxable entities in the U.S.
So far, Oklahoma has introduced a bill authorizing the use, sale, and exchange of cryptocurrencies within government agencies. New York has also proposed a conditional licensing framework to make it easier for start-ups dealing in virtual currencies to operate. In the meanwhile, Wyoming has passed a bill allowing the creation of a bank. The purpose is to allow businesses to hold digital assets legally and safely. Promoting law enforcement awareness and consulting expertise in cryptocurrency technology are future strategies deployed by the US Department of Justice to efficiently combat illicit uses of cryptocurrencies.
2. Pakistan
In April 2018, an announcement issued by the State Bank of Pakistan (SBP) advising banks, payment systems operators, and the general public not to facilitate cryptocurrency transactions was made. The press release further stated that digital currencies are not recognized as legal tender. However, the SBP reportedly stated that the press release was to caution the general public against cryptocurrency’s unregulated use, and not to ban virtual currencies. Currently, there are no specific laws that regulate cryptocurrencies or crypto trading in Pakistan. What we know is that in November 2020, the Securities and Exchange Commission of Pakistan published a position paper suggesting measures for the regulation of cryptocurrency.
3. Brazil
As of the time of writing this post, Brazil has not yet regulated cryptocurrencies. However, the Brazilian Parliament is aiming to define cryptocurrencies, hence, regulating them. This bill which allows digital currencies to be used, traded, and transferred is currently under discussion. Brazil’s finance ministry classifies cryptocurrencies as a financial asset according to the document issued. The document requires businesses and even individuals to report any crypto transactions above $7,600 (30,000 Brazilian real) to tax authorities. In the coming years or even months, we could list Brazil among the countries that have regulated cryptocurrency.
4. South Africa
Coming to Africa, South Africa is considering regulating cryptocurrency with sufficient checks and balances. The government will soon move towards a more streamlined regulatory approach to crypto.
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Countries That Have Regulated Cryptocurrency
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