There is absolutely no doubt about digitization taking over the global economy and our lifestyle, the only question is, how soon we will adopt it? Cryptocurrency is the obvious next step towards the embracing of a digital era, this is a technology that allows us to bring more transparency, efficiency, and security into our business. With this fintech solution, we can get rid of all the complex problems that have restricted ourselves in taking an advanced step. But this is going to be possible only when the governments of different countries understand the significance of cryptocurrency and legitimize it for their citizen.
So far, we have seen a mixed reaction from different nations across the globe, while some cracked down on it, a few embraced it with all its potentials. Most of the nations have neither rejected the power of this technology nor have accepted it with open arms. This ambiguous stance has left the experts speculating their next move around the world. The latest developments in this domain certainly suggest that we could see some positive moves made towards the induction of crypto into the mainstream.
Recently, the social media giant Facebook made it official that it is going to launch its own crypto. In a first, the Internal Revenue Service (IRS) also gave an inkling that would set up a framework for levying taxes on the transactions of digital assets.
A couple of countries have legalized cryptocurrency which is certainly a laudable move but considering a large number of hostile ones, that could be equated with a drop in the ocean. We can only hope that more nations would be forthcoming about the implementation of cryptocurrency this year. If we are to accept crypto as a pioneering solution that could break new ground in different domains, then it has to be a unanimous step.
In this article, we will discuss the stance of different countries towards this fintech solution including the possible steps they could take for incorporating it into their economy.
1. Malta
It became the first country to regulate cryptocurrencies by approving the Virtual Financial Assets Bill on July 4, 2018. It is certainly a big step that has prodded many other nations to think about the implementation and positive effects of this technology. Historically, this island nation’s economy has majorly depended on port trading for obvious reasons. However, the government is resolute to incorporate more ways to increase the revenue and the induction of cryptocurrency is certainly going to lay a positive impact.
2. Bermuda
Another country that took a solid step towards making crypto a ‘virtual currency’ for its citizens. The government of Bermuda has also passed the Virtual Currency Business Act that regulates the working of digital assets in the country. With this step, the startups and enterprises of this country have got greatly benefitted, they have found a new way to deal with assets. Not only that, they can acquire more transparency and execute voluminous deals as there is no charge on the crypto transactions. The country is already known for being a tax haven across the globe with levies on wealth, capital, income or VAT. It only has the provision of payroll tax that is 10% on certain goods and services.
Related: Top 5 Trends In Cryptocurrency For 2020
3. Switzerland
Probably the biggest safe haven for those want to save taxes in their country. Switzerland has always been the prime destination for various industrialists, politicians, and celebrities who surreptitiously wanted to evade taxes in their country. But that’s not the reason it became an entrant in our list, with the policy of armed neutrality, Switzerland has always worked towards maintaining peace and healthy economy across the globe. With its stance towards cryptocurrency, this country has once again proved that it is ahead of others in bringing prosperity and innovation in the world. It can soon introduce the Bitcoin taxation law in 2020 or in the next few years.
4. Gibraltar
A British Overseas Territory, known for the Rock of Gibraltar and a minuscule population of 32,000 people, this is the next country in our list that introduced a law that recognized the existence of cryptocurrency. In 2018, the government of Gibraltar drafted and passed the Distributed Ledger Technology Regulatory Framework that legalized the buying and selling of cryptos in the country. It provides the freedom to the entrepreneurs who want to launch their ICOs with the legal backing of the government. With this step, the country becomes a hub for various entrepreneurs who want a successful and seamless launch of their crowdfunding campaign.
5. Slovenia
A country located in Europe and known for an impressive human development and economy index, the Republic of Slovenia has also been a step ahead from many countries in recognizing the potential of this technology. According to its policy framed in 2017, the country doesn’t levy any taxes on Bitcoin or any other digital currency, a fact that gives plenty of opportunities to the crypto traders. However, if you have made profits with your crypto trading, then you will have to pay the income tax under the relevant laws.
6. Singapore
Another highly-developed country with a remarkable GDP and human development index as well. The government of Singapore deems Bitcoin and other cryptocurrencies as goods and not currency. This brings regulations in the working of cryptos as they come under the ambit of Goods and Services Tax (GST), the current rate of which is 7%. The leaders of the country have taken a positive stance towards this technology and said that they must do some experiments to gauge its efficiency. While warning the citizens about the risks involved in crypto trading, the Monetary Authority of Singapore (MAS) maintained a welcoming gesture for any sort of discussion over it.
7. Estonia
Located on the eastern coast of the Baltic Sea in Northern Europe, this developed nation has a high-income economy along with a noteworthy development index. It is also considered as one of the most digitally-advanced countries in the world and the first nation to hold elections over the internet and to provide e-residency. With these technological advancements, it is no wonder if you hear that the country has an inclination towards crypto. In this country, crypto is considered an alternative currency, not security which makes the earning through crypto trading taxable under the capital tax of 25%.
8. Georgia
A developing country thriving hard to attain the superior status, the Republic of Georgia is located in the Caucasus region of Eurasia. Like all the other developing, this one is also making maximum efforts to attract foreign investment and cryptocurrency gives it a chance to amp up the rate of progress. The efforts for economic reforms and modernization also engulf this technology and makes it a primary focus for the country. The preferential taxation scheme introduced by the government allows more crypto users to indulge in this trade.
9. Belarus
A landlocked country in Eastern Europe, Belarus is one of the nations that has made trading of crypto easier in its territory. Being a manufacturing-centric economy, this country has worked well on digital assets and come up with measures that make trading even easier. It has waived all taxes on the crypto transactions until January 2023 which means that the miners can also indulge in minting as many coins they want till this period. Besides trading, the law also encompasses the gifts and inheritances given in cryptos.
10. Hong-Kong
As an administrative region of the People’s Republic of China, Hong Kong has done an impressive job of inducting new technologies for the good of its citizens. Currently, this entire region is embroiled in violent protests against the amendment in one of the key laws that snatch the autonomy out of the country’s hands and bring it under the jurisdiction of China. However, as far as its stance towards Bitcoin and other cryptocurrencies is concerned, the country has friendly regulations that allow the citizen to enjoy the benefits of this technology.
Besides these countries, there are others that are likely to take some positive steps soon to incorporate this technology into their economy:
- Japan
- United States
- Germany
- France
- Canada
- Holland
- Vietnam
When we talk about a cryptocurrency’s acceptance as currency in the economy of a nation, there are a few things to talk about.
Taxation and Regulations
First of all, that nation has to come up with a separate framework that regulates the dealing of crypto coins. Whether it is buying and selling between two different parties or their exchange on a specific platform. The government has to decide the strictures on which the crypto users will go about buying and selling their assets. And the framework needs to be designed in such a manner every token holder gets equal opportunity to make a profit and there is no scope for monopoly. Countries that have levied a tax on cryptos are currently charging 10% to 15%, the number will come down as more countries start to accept it.
Bottomline
Cryptocurrency gives us ample opportunities to ingrain efficiency, transparency, and safety in our business opportunities. You can also get it if you have a reliable cryptocurrency development company by your side. Coin Developer India promises the most cutting-edge products and services for your crypto-based business with a team of seasoned developers. We are able to gauge the precise degree of implementation of this technology for your business, thus, we become excellent consultants as well. With us, you cannot launch your venture based on a decentralized mechanism, you can also make it an absolute success.
