0

0

0

0

0

0

0

0

0

This article is more than 2 month old.

From the US to India: How major countries are looking at Bitcoin from regulatory perspective

Mini

The regulatory landscape remains hazy and uncertain for Bitcoin and cryptocurrencies. While El Salvador has accepted Bitcoin as its legal tender, many other advanced economies are still hesitant. Here is how Bitcoin is placed in different economies:

From the US to India: How major countries are looking at Bitcoin from regulatory perspective
Recently, Central American country, El Salvador, has accepted Bitcoin as a legal tender in its jurisdiction. This has sparked a debate that other countries should follow suit.
Ever since then, cryptocurrencies have gone through the roof in both price and positions. Nevertheless, Bitcoin has kept up with its stellar position throughout the past decade since its launch in 2009.
However, the regulatory landscape remains hazy and uncertain for Bitcoins and cryptocurrencies.
Here is how Bitcoin is placed in different economies:
USA:
 During the pandemic, the use of Bitcoin as a medium of payment and remittances has increased significantly among black and marginalised communities in the USA, making a stronger case for greater acceptance of the digital coin. The USA has been issuing guidelines to regulate Bitcoin and other digital coins since 2013. The country’s regulations regard digital coins as money services business (MSB) and make them disclose important details under Bank Secrecy Act. Also, Bitcoin derivatives have made their way to the US financial markets.
Singapore: The country has emerged as a preferred destination for many crypto exchanges and other crypto businesses from other countries where the regulatory landscape is not favourable. Crypto transactions in Singapore are regulated by the Payment Services Act, 2020, and the Securities and Futures Act, 2021. The country’s central bank Monetary Authority of Singapore has been quick in recognising the importance of crypto trading and has provided an appropriate regulatory framework for the sector.
El Salvador: A Central American country with 6.5 million people and the self-proclaimed “coolest dictator in the world”, Nayib Bukele as the president, is the first country in the world to accept Bitcoin as a legal tender. The country’s Legislative Assembly passed the bill to this effect on June 8, and the move came into force on September 7, 2021. A day before, on September 6, the El Salvador government bought 400 Bitcoins. Although about 1000 protestors came out to oppose the move, Bukele’s popularity has not declined since his election to the top post in 2019.
European Union, Canada, Australia: Some countries have generally been positive towards Bitcoin and cryptocurrencies but fall short of accepting them as legal tender. These countries include Canada, Australia, and the EU nations. They treat digital coins as an asset class, commodity, or money business and regulate and tax the profits made through crypto transactions.
Nigeria, India, China: Some countries have taken a strong posture vis-à-vis Bitcoin and other digital coins. China doesn’t allow any crypto infrastructure in the country, including mining facilities that have contributed significantly to the growth of Bitcoin over the past decade. It doesn’t allow any crypto trade but doesn’t stop people from holding cryptocurrencies. Nigeria, which is the 2nd biggest crypto market after the USA, has formally banned all digital coins. India is yet another major economy, is planning to bring in a law to regulate cryptocurrencies.


Taxation
All those countries, from the USA, Singapore, Australia to the countries in the European Union that allow crypto traders have put in place appropriate regulations and watch out for further developments in the crypto space through various regulatory agencies. Some countries that don’t have proper regulations for the crypto trade, such as France and India, are working out and coming up with effective policies and rules for this tech-savvy novel and emerging sector.
Acceptance of Bitcoin by businesses and stores
Many leading companies have started accepting Bitcoin and some other digital coins for payments. Microsoft, Virgin Atlantic, Shopify, Microstrategy, Subway, Burger King are among the top companies that accept payments in Bitcoin. However, the list is long, and the adoption of Bitcoin and other digital coins continues to increase.
What does the future hold?
Despite governments maintaining a distance, Bitcoin has emerged as a more powerful store of value than gold. Apart from common investors, even big corporations and some nations have invested in Bitcoin to protect their money from inflation and devaluation. Bitcoin as an asset class is all well accepted, but Bitcoin as a legal tender has a long way to go. Governments will cede control over money and let private companies dictate terms to governments is unlikely to happen anytime soon.
But as they say, “No force on earth can stop an idea whose time has come.” Keep your fingers crossed.


 
next story