In Pics | Countries that have legalised cryptocurrencies

Japan is one of the fastest-developing technology markets in the world. Hence it does not come as a surprise that Japan has legalized crypto currencies. In fact, Japan has set up a specific PSA (Payment Services Act) based framework which allows some crypto currencies and a number of exchanges to be used for payment and trading purposes. The country is now a hub for crypto currency trading/exchange in the Asian continent.

Bitcoin was accepted by the US government in 2013 as a decentralised virtual currency that can be used for performing transactions. It was later classified as a commodity by Commodity Futures Trading Commission (CFTC) in September 2015. However, in a country where BTC is legalised and taxable, the status of other cryptocurrencies remains unclear. 

Following the worldwide trend of trading in crypto currency, the Indian government has made some special provisions and regulations and levied a tax on virtual currency trading. 

The Canadian government in 2017 accepted Impak Coin as its first legalised cryptocurrency. Earlier, under the Quebec regulation, authorities had legalised BTC for some limited business models, including ATMs and exchanges. However, the Bank of Montreal and some other Canadian states do not allow customers to use their bank cards to perform cryptocurrency transactions.

El Salvador was among the first few countries to use crypto currency. It was also the first country in the world to accept BTC as a legal tender. El Salvador, which aims to achieve large scale transformation for its digital economy, has recently introduced regulations for relieving foreign investors from income or capital gains taxes on crypto currencies. 

The Bank of Thailand in 2017 legalised the use of BTC. Only licensed Bitcoin exchanges in Thailand are allowed to exchange cryptocurrencies for Thai Baht. However, the Central Bank of Thailand doesn’t allow its users and associated financial institutions to indulge in any kind of cryptocurrency-related business.

Unlike several countries which view crypto currency as asset, Germany considers it as private money. Germany also gives long-term investors freedom from long-term capital gains tax. Hence, people holding crypto currency for over a year would receive waivers on the capital gains taxes. 

The use and trading of BTC and other virtual currencies are legal in Singapore. The Singaporean government doesn’t control the operation or price of these currencies. Hence, merchants and consumers do not face a problem using crypto currency freely in Singapore. Though the use of BTC in Singapore is taxable in some cases.

Switzerland allows cryptocurrency usage, with maximum tax benefits on cryptocurrencies. The country has adopted BTC as a legal tender. Additionally, Switzerland also features an exclusive crypto mining industry, which offers a viable opportunity for many crypto startups.

Since 2014, France has legalised the operation of virtual currencies such as BTC, along with cryptocurrency exchanges, and taxation.