Ever since the concept of cryptocurrency was introduced, there has been a constant rise in the number of cryptocurrencies and trading platforms that are becoming prominent. But lack of regulation in Bitcoin version was a deterring factor. But now there are regulations being introduced to make the system safe and credible.

More on cryptos

Cryptocurrencies are, by nature, decentralized. No central authority can rule over them or control them. It is no secret that this can be a bother to governments around the world. Therefore, governments do their best to exercise as many regulations as they can on such digital forms of currency. It can be confusing to start trading cryptos because of the various rules involved in the process. One common form of regulation is taxation. Just like any other transaction, crypto transactions are also equally taxed. Maybe you should try checking out apps or websites such as bitcoinx to help simplify the process. However, each country has a different opinion on cryptocurrency, every country has its own way of classification and taxation policies when it comes to such digital currencies.

Cryptocurrency regulations in different countries

All around the globe, cryptos are not controlled by any bank or government. However, there is a bit of regulation that all governments exercise on cryptocurrencies. Let us look at the different countries and their policies.

United States

It is one of the prominent nations investing in cryptocurrency. In fact, there are 2300 companies in the US accepting Bitcoin payments. This highlights a positive inclination toward cryptos, in fact, it has also initiated regulations in the crypto trading world.  Bank Secrecy Act (BSA) regulates crypto transactions.

United Kingdom

The United Kingdom does not yet consider cryptocurrency as legal tender or money. Instead, they identify crypto as a property. It is now mandatory to register the cryptocurrency exchanges on Financial Conduct Authority (FCA) and are prohibited from offering crypto derivatives trading. Investors choosing to invest in crypto must still pay capital gains tax on the profits they gain from trading in crypto. However, general taxation policies depend on the kind of activity being performed and the person performing said activity. Several cryptocurrency-specific requirements must complied with that relate to knowing your customer (KYC) as well as the AML and CFT.

Singapore

The regulations imposed in Singapore are quite similar to that of the United Kingdom. The Monetary Authority of Singapore (MAS) of the country is the entity that licenses and regulates all crypto exchanges and transactions according to the guidelines present in the Payment Services Act (PSA). Singapore also identifies cryptocurrency as property and not legal tender or money. Singapore offers a safe cryptocurrency trading ecosystem. This is owing to their advantageous taxation policy. Singapore does not include tax investors on their capital gains made long-term. Instead, taxes are levied on the companies that regularly engage in cryptocurrency transactions.

India

India has still given a yes to cryptos, but yes, it has introduced taxation on it. Despite them not recognizing it as a legal tender, India’s Central Board of Direct Taxation obligates all investors to pay taxes on the profits incurred by trading in cryptocurrencies. The Reserve Bank of India (RBI) banned transactions of virtual currencies. Despite all this, regulations imposed on cryptocurrencies remain unclear even now. For example, the country recently proposed some laws that could make all transactions and ownership of cryptocurrencies illegal.

Wrapping it up !!!

From the above discussion, we can say that there is a positive inclination toward the acceptance of cryptocurrencies. However, with the regulations, this market will become more organized. It will also help in creating more trust in decentralized transactions. With the growing number of companies accepting crypto payments, this is the right time to start investing in cryptocurrencies. With these regulations, investors will have more trust in the system. In fact, there are some countries that China that has introduced there a national cryptocurrency that has the backing of the government that a more secure. Hence if you have decided to take a step ahead, you can register yourself on a trading platform. Thorough research on the crypto market helps in making an informed decision when it comes to crypto trading.