Cryptocurrency has gained incredible momentum throughout the years. The digital currency has become very popular due to it’s profitable investing and value. Because it has become so popular with the masses in recent years, many countries have been debating on certain regulations and laws that must be put in place. Much of the digital currency is not ruled by any central government, which leaves countries around the world with different standards and regulations:
According to FinCen, a bureau of the Treasury Department, “virtual currency does not have legal tender status in any jurisdiction.” Depending on the state, an exchange of cryptocurrency is legal. The United States currently has the second largest collection of Bitcoins around the world. Because the United States views its cryptocurrency as security, it has been looking to apply new securities laws with cryptocurrency exchange to digital asset storage companies. The IRS does not view cryptocurrency as actual currency, but instead as property.
Cryptocurrency exchange in the United Kingdom is legal, but it must be registered with the Financial Conduct Authority. They are also required to meet the same anti-money-laundering counter-terrorism standards as other financial institutions in the UK. However, Bitcoin is not legal tender, only sterling is still legal. The UK is looking to hold cryptocurrency up to the same standards as traditional currency. They view digital currency as high-risk and too unpredictable.
In Japan, Bitcoin has just become legal tender. Exchanges of cryptocurrency are legal when registered with the Japanese Financial Services Agency. They currently hold the biggest market for Bitcoin and trade nearly half of the digital currency’s volume in the country’s currency. Hacking has become a major issue, forcing them to adopt a national system to regulate cryptocurrency trading exchanges. Japan also issued punishment notices to multiple exchanges which lead to some business to come to a halt after the cryptocurrency giant exchange Coincheck was hacked and robbed of $530 million.
Bitcoin is not legal tender in Singapore. The cryptocurrency exchange is legal but may fall under the regulatory purview of the Monetary Authority of Singapore. Singapore has become one of the most friendly countries towards cryptocurrency and has no case to ban digital currency. Although they recognize the risk of cryptocurrency, they are eager to see how it could improve their economy.
Switzerland has allowed Bitcoin to be legal tender and it must be registered with the Swiss Financial Market Supervisory Authority. They are also very friendly towards cryptocurrency exchange and welcomes digital currency. Many initial coin offerings have taken place in Switzerland. Due to the country becoming a hub for blockchain-based companies, there are guidelines put in place by the Swiss Financial Market Supervisory Authority. In Switzerland, cryptocurrency is viewed as a smart investment.