Value added tax/GST and other taxes (such as income tax) continue to apply to transactions with bitcoins for goods and services. The fatwa also prohibits trading and holding cryptocurrencies unless these cryptocurrencies meet Sil`ah`s Islamic standards of tradable and possessable goods such as physical form, clear value, known number, can be truly owned, transferable and not entirely speculative.  On December 23, 2013, the Slovenian Ministry of Finance issued an announcement stating that Bitcoin is neither a currency nor an asset. There is no capital gains tax on Bitcoin, but Bitcoin mining is taxed and companies that sell goods/services in Bitcoin are also taxed. In 2013, the Bank of Portugal stated that Bitcoin was not a safe currency because its issuance had no oversight or regulatory requirements. In 2014, Portugal did not have a specific legal framework for Bitcoin. : Portugal The Jordanian government has issued a warning advising against the use of Bitcoin and other similar systems.  Antigua and Barbuda. A law has been passed to protect crypto exchanges and users. Bitcoin could soon become legal tender in the country, as you can use Bitcoin to pay for citizenship.
Australia. Bitcoin and other cryptocurrencies have been legal in the country since 2017 and are subject to capital gains tax. Barbados. Cryptocurrencies operate legally in Barbados. Barbados has its own digital currency, DCash, which was active in 2021. Belgium. Cryptocurrencies are “another income tax”. Crypto is not considered legal tender, although it is recognized as a “possible alternative to money”. Bulgaria.
Licenses are not required to operate crypto businesses, and they are treated as income from the sale of financial assets. Cayman Islands. New laws regulating cryptocurrencies have been passed. They have favorable tax laws for businesses, including cryptocurrency companies. Chile. Cryptocurrencies are subject to the country`s monetary policy. There are protections for cryptocurrency exchanges in Chile. Croatia. There is a tax exemption threshold of HRK 3800 and a capital gains tax of 12%-18%. The government warns of the high risk of crypto.
Dominica. Plans to test a cryptocurrency, DCash, are positive in the country. There was a project to distribute Bitcoin to the population but was canceled. Estonia. Crypto is considered a virtual currency and has digital value as a payment method, although it is not considered legal tender. Finland. Crypto is legal and is considered a virtual currency. The Financial Supervisory Authority is the authority for virtual currencies. Germany. Crypto assets can be bought, sold and held as long as they originate from an accredited institution. Indonesia.
Cryptocurrencies have been legal in Indonesia since 2019. It is considered a commodity and not a payment method when trading. Italy. Cryptocurrencies are considered a virtual currency and are subject to corporate and income tax. Ireland. Crypto is considered a virtual currency and is taxed differently due to several scenarios. Japan. Crypto assets fall into the “Other income” category. Lithuania. Lithuania was one of the first countries to have a framework for cryptocurrencies and taxation, with income of up to 2500 euros considered tax-exempt. Malta. Malta is known for being home to some of the largest cryptocurrency exchanges such as Binance and OKEx, as they are open when it comes to crypto.
Mauritius. Their settlements fall into the category of digital assets. Marshall Islands. SOV or Sovereign is the legal tender of the Marshall Islands and is powered by blockchain. New Zealand. Cryptocurrencies are compared to gold and are subject to tax. Norway. Cryptocurrencies are considered assets and are taxed.
Philippines. Cryptocurrencies belong to the categories of securities and investment contracts and are subject to SEC regulations. All financial services related to cryptocurrencies, such as exchanges, are subject to the guidelines of the Central Bank of the Philippines. Serbia. Crypto is considered a digital asset for tax purposes. Cryptography services require a license. South Korea. Crypto is legal and subject to anti-money laundering laws, while it is strictly regulated by the government. Financial institutions are required to report cryptocurrency transactions. Sweden.
Bitcoin trading is considered a financial service. Profits are taxed as operating income. Switzerland. Already in 2017, crypto was accepted by the commercial register as a means of payment. Institutions need licenses to mine cryptocurrencies. There is extensive regulation with a very positive outlook on crypto as a whole. Ukraine. Crypto is classified as property in the country. This is the growing target of several crypto companies. United Kingdom. Exchanges must meet certain FCA requirements.
Bitcoin is “private currency” in the United Arab Emirates. The UAE is considered a crypto-friendly country and has its own Emirates Blockchain 2021 strategy to shift much of its transactions to blockchain and become a blockchain-powered government. United States. Crypto is subject to tax laws in the United States. It is regulated when the sale of securities involves cryptocurrencies. Uzbekistan. Crypto is now legal in the country. Cryptocurrency revenues are not taxed and exchanges require specific requirements and licenses to operate. Venezuela. After Venezuela created its own oil-backed cryptocurrency in 2017, it seemed like a prime candidate for widespread adoption of crypto. It was declared illegal in 2018 and efforts were made to make it legal again in January 2020.
Mining that was illegal and those who did so were charged. Cryptocurrency activities are now legal in Venezuela. The Library of Congress identified 42 countries with implicit bans on certain cryptocurrencies in its November 2021 update. Some of the countries it lists are: In October 2017, the National Tax Administration Agency (ANAF) stated that there was no legal framework for Bitcoin and therefore it was not able to create a tax regulatory framework for it (which implies no taxation).  The Decree on the Development of the Digital Economy — the decree of Alexander Lukashenko, President of the Republic of Belarus, which contains measures to liberalize the conditions for doing business in the field of high technology. We spent dozens of hours compiling the most relevant and useful information about cryptocurrency and its legal status around the world. The viability, legality and even practicality of cryptocurrencies continue to be hotly debated. As more and more countries become more receptive to crypto, albeit to varying degrees, a deeper understanding of the legal status of the crypto where you live will help you make the right decisions when determining whether this asset is right for you.
Before we take a look at the legal status of crypto in the world, let`s start with its beginnings. Germany`s unique approach to cryptocurrencies is a valid reason to add them to this list. Germany views cryptocurrencies as private money, unlike many other countries that adopt cryptocurrency as an asset. Long-term investors could find a safe haven in Germany to be exempt from long-term capital gains tax. Therefore, people holding cryptocurrency for more than a year would benefit from capital gains tax exemptions. In addition, Berlin has also become a hub for many popular blockchain companies such as EOS. There are liquidity and regulatory risks surrounding the crypto market that a country assumes when it uses it as legal tender. Since the crypto market is highly correlated to the US stock markets, the Federal Reserve`s policy changes will have an impact on crypto prices. In 2016, Zug added Bitcoin to pay city fees, in a test and attempt to push Zug as a region driving future technologies.  Swiss Federal Railways, Switzerland`s state-owned railway company, sells bitcoins at its ATMs.  The use of Bitcoin is not regulated in Cyprus.
: Cyprus Despite the many controversies surrounding virtual currencies, prominent Pakistani bloggers and social media influencers are publicly involved in Bitcoin trading and regularly post content on social media in favor of cryptocurrency regulation. In December 2020, the government of Khyber Pakhtunkhwa became the first province in Pakistan to pass a resolution to legalize cryptocurrency in the country.  Unless citizens can prove that they do not have access to the required technology, they can use Bitcoin as a means of payment if BTC is considered legal tender in their respective jurisdictions.