Disputes about the advantages and disadvantages of cryptocurrencies are still relevant: some countries recognize them as a means of payment, while others categorically deny. The issue of regulating cryptocurrencies in the world comes down, therefore, to only two things - allow or permit.
In those countries where cryptocurrency is recognized, they have already developed or are just starting to develop an appropriate regulatory framework for introducing them into the economy. The cornerstone in this matter is taxation. And here in different countries they begin to approach the interpretation of digital currency differently. In practice, there are two main scenarios for the state to evaluate cryptocurrencies: as a valuable property, or as a means of payment and a full-fledged currency.
For example, in the United States, cryptocurrencies are treated as valuable property, such as objects of art or precious metal. In 2014, Americans developed a guide to taxing transactions and cryptocurrency transactions. According to this guide, those who purchase cryptocurrency as an investment, selling it, profit from capital gains, and not from exchange rate differences. And hence the capital gains tax. Almost the same scenario went in Canada, where cryptocurrency is considered as valuable property, and taxation depends on the purpose of using virtual currency - a purchase, sale or investment. In Israel, in early 2017, cryptocurrency was assigned property status. There, digital currency cannot be a means of payment, and its sales are considered the sale of property. Accordingly, income is taxed by VAT and income tax.
In Japan, on the other hand, cryptocurrency has been considered an official means of payment since 2016, and since 2017 its sale has been exempted from consumption tax. Profits from transactions and cryptocurrency transactions are equated to profits from doing business. Therefore, it is taxed only on capital gains. In Bulgaria cryptocurrencies are considered a financial asset. In 2014 this country recognized the legitimacy of digital money, for which there is only one condition - payment of tax at 10% of the sale or exchange. This is nothing, unlike Norway, where the tax on the so-called small winnings on the exchange should be 25%. In Sweden cryptocurrency has also been equated to currency. At the same time, the income from its extraction is considered labor rather than entrepreneurial.
At the same time, there are very specific cases of cryptocurrency regulation in the world. For example, in Germany cryptocurrencies are given the status of private money. In the UK today cryptocurrencies are regarded as foreign currency, and hence the corresponding taxation. In Australia digital currency transactions are defined as barter relationships. Companies that work with virtual money must keep mandatory records, and tokens received as a payment are equated to ordinary income and are valued in Australian dollars.
However, not all countries share optimism about the development of the cryptocurrency market. Icelanders are forbidden to buy bitcoins on exchanges, although you can mine them. In China cryptocurrencies were initially accepted without enthusiasm, as well as in Romania, Kyrgyzstan, Ecuador, Taiwan, Vietnam and Bangladesh. Despite this experience, in Russia there is still ongoing talk about the status of cryptocurrencies, which are still not allowed, but not prohibited.
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