Financial institutions are not allowed to facilitate Bitcoin transactions. [14] Regulators have warned the public that Bitcoin does not enjoy legal protection „because the currency is not issued by any monetary authority and therefore is not entitled to any legal claims or conversion guarantees.” [109] In June 2021, China banned all domestic cryptocurrency mining and banned cryptocurrencies completely in September 2021. The new regulation effectively banned the use of all cryptocurrency exchanges (foreign and domestic) and resulted in a massive token sale. Although domestic cryptocurrency exchanges are subject to a blanket ban in China, workarounds are possible through certain foreign platforms and websites that China`s internet firewall does not capture. A number of crypto initiatives with potentially significant regulatory implications have been discussed in Estonia, including a speculative government plan to launch a national cryptocurrency called „Estcoin”. In December 2021, Estonia published a draft law to extend AML/CFT regulation to cryptocurrency exchanges: the use of private cryptocurrency wallets provided by VASPs will be effectively banned. The bill raised fears that Estonia would ban private ownership of cryptocurrencies and prompted the government to issue a press release in January 2022 clarifying that the law would only apply to private wallets issued by VASPs. Following the 2020 legislative changes, all South Korean stock exchanges must comply with AML/CFT regulations and obtain an operating license from the Financial Services Commission`s Financial Intelligence Unit (FIU). In March 2021, the South Korean government introduced a law requiring cryptocurrency investors to use the same name on their virtual wallet accounts as they do on their bank accounts – and requiring cryptocurrency exchanges to exchange information with banks to verify the identity of customers. The FIU also removed all privacy coins from South Korean exchanges in 2021 (effectively banning token trading).

In 2019, a leaked alleged bill suggested that a blanket ban on cryptocurrencies was in the works — but made an exception for a proposed official digital currency. The bill even proposed prison sentences for people who „mine, generate, hold, sell, exchange, spend, transfer, dispose of or use cryptocurrency within the territory of India.” In Singapore, cryptocurrency exchanges and exchanges are legal, and the city-state has taken a friendlier stance on the issue than some of its regional neighbors. Although cryptocurrencies are not legal tender, Singapore`s tax authority treats bitcoins as „goods” and therefore applies the goods and services tax (Singapore`s version of VAT). In 2017, the Monetary Authority of Singapore (MAS) clarified that although its position is not to regulate virtual currencies, it would regulate the issuance of digital tokens if these tokens were classified as „securities”. „The government does not recognize cryptocurrency as legal tender or currency and will take all measures to prevent the use of these crypto-assets to fund illegitimate activities or as part of the payment system,” Jaitley said. [79] There is no specific legislation on bitcoin or cryptocurrency in North Macedonia. In South Korea, cryptocurrencies are not legal tender and exchanges, although legal, are part of a tightly monitored regulatory system. Taxing cryptocurrencies in South Korea is a grey area: since they are considered neither a currency nor a financial asset, cryptocurrency transactions are currently exempt from tax. However, the Ministry of Strategy and Finance has indicated that it is considering imposing a tax on income from crypto transactions and plans to announce a tax framework in 2022. As of December 2021, El Salvador was the only country in the world to allow Bitcoin as legal tender for monetary transactions. In the rest of the world, cryptocurrency regulation varies by jurisdiction.

The Maltese government has also indicated that it will focus on integrating AI into cryptocurrency regulation and may implement specific guidelines for security token offerings. With these strategies in mind, further Maltese regulations are likely in the near future. Any investor can buy cryptocurrency from popular crypto exchanges such as Coinbase, apps such as Cash App or brokers. Another popular way to invest in cryptocurrencies is to use financial derivatives such as CME`s Bitcoin futures or other instruments such as Bitcoin trusts and Bitcoin ETFs. Germany also agrees with the position of the European Court of Justice that exchanging bitcoins for fiat currency is exempt from VAT. At the same time, based on the analysis of the Ministry of Finance documents for 2014, business activities for the sale of BTC and other digital currencies should be taxed. According to the legal definition: „Legally, the purchase and sale of Bitcoin is a private sale transaction according to § 23 paragraph 1 sentence 2 of the Income Tax Act, which (according to § 2 paragraph 1, sentence 1, No. 7 EStG is classified as income tax”, which means that the tax is initially intended only for a small time difference in the accounting.

This means that Bitcoin as an investment is not taxed in Germany. There is a wide range of cryptocurrency wallets available right now. Current types of cryptocurrency wallets include: (i) a software wallet with a device where you hold the private keys (example: BitPay wallet); (ii) a multi-device web wallet where you hold the private keys (example: blockchain wallet); (iii) an online wallet for multiple devices for which you do not hold the private keys (example: Coinbase wallet); (iv) a USB hardware dongle wallet where you hold the private keys (example: Trezor wallet); and (v) a „paper wallet” where private and public keys are noted (which can then be loaded into a software wallet of your choice to be spent). Bitcoin was legal tender in the country by the Bitcoin law, which was passed on June 8, 2021,[40][41] and came into effect on September 7, 2021. [42] [43] Cryptocurrencies are not legal tender in Canada, but can be used to purchase goods and services online or in stores that accept them. Canada has been very proactive in its treatment of cryptocurrencies, regulating them primarily based on provincial securities laws. Canada placed businesses that trade in virtual currencies under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) in 2014, while the British Columbia Securities Commission registered the first pure cryptocurrency mutual fund in 2017. In August 2017, the Canadian Securities Administrators (CSA) issued a notice on the applicability of existing securities laws to cryptocurrencies, and in January 2018, the head of Canada`s central bank referred to them as „technically” securities.

The Canada Revenue Agency has been taxing cryptocurrencies since 2013 and Canadian tax laws apply to cryptocurrency transactions. Cryptocurrencies are not legal tender in India and the status of exchanges remains unclear as new regulations are considered. Although there is currently uncertainty about the tax status of cryptocurrencies, Finance Minister Bhagwat Karad hinted in February 2022 that cryptocurrency transactions could be subject to a 30% tax. Australia is considered a reasonably stable jurisdiction for cryptocurrency agencies and, in line with the government`s hands-off and relatively passive approach, cryptocurrency regulation is largely tied to existing domestic legislation (such as AML/CFT 2006).