China: Central explicits Bitcoin status Prohibit financial institutions involving Bitcoin businesses
While private parties can hold and trade bitcoins in China, regulation prohibits financial firms like banks from doing the same.
On 5 December 2013, People’s Bank of China (PBOC) made its first step in regulating bitcoin by prohibiting financial institutions from handling bitcoin transactions. In a statement on the central bank’s website the PBOC said financial institutions and payment companies cannot give pricing in, buy and sell bitcoin or insure bitcoin-linked products.
On 16 December 2013 it was speculated that the PBOC had issued a new ban on third-party payment processors from doing business with bitcoin exchanges,however a statement from BTC China suggests this isn’t accurate, and rather payment processors had voluntarily withdrawn their services.
On 1 April 2014 PBOC ordered commercial banks and payment companies to close bitcoin trading accounts in two weeks.Trading bitcoins by individuals is legal in China.
On 9 February 2017, multiple bitcoin exchanges in China delay or pause bitcoin withdraw service, with or without announcement. Some of the announcements,if not all, claim that regulation activities have been or are to be taken. News resources,also show that, although such activities were carried out by PBOC, they were not done via legal approaches, but by “appointment” instead. None of the exchanges presented or have claimed to receive any lawful paperwork.
America:Bitcoin becomes legal currency
The United States have taken a positive approach towards bitcoin. At the same time, it has several government agencies working on preventing or reducing the use of bitcoin for illegal transactions.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has been issuing guidance on bitcoin since the beginning of 2013. The Treasury has defined bitcoin not as currency, but as a money services business (MSB). This places it under the Bank Secrecy Act which requires exchanges and payment processors to adhere to certain responsibilities like reporting, registration, and record keeping. In addition, bitcoin is categorized as property for taxation purposes by the Internal Revenue Service (IRS).
Germany:Germany government admits Bitcoin
On August 19, 2013, the legal “currency” status of Bitcoin was officially recognized by the German government, which would be used for tax and other legal purposes. Germany becomes the first country to recognize Bitcoin.
At present, the definition of Bitcoin which is made by the German Ministry of Finance is: a “accounting unit”, neither electronic money, nor foreign currency, but similar to the “private currency” can be used for “multilateral settlement circle.”
At the same time, the German Ministry of Finance on the special currency tax has more specific description: as a private use of the special currency tax, for commercial purposes of the bit currency will have to pay taxes, for example, if someone within a year By earning a profit of $ 2, you will be entitled to 25% of the capital gains tax. If you hold a bit currency for one year, you will be treated for private purposes.
If an enterprise wants to use bitcoin in a transaction, it must obtain permission from the German financial regulator. This means that bitcoin has been incorporated into the German financial system while being recognized as a “bookkeeping tool”. The initiatives have created favorable conditions for further promotion of bitcoin.
France:Bitcoin trading is not illegal
The French Ministry of Finance issued regulations on July 11, 2014 pertaining to the operation of virtual currency professionals, exchanges, and taxation.
Thailand:Thailand fully blocked Bitcoin in 2013
Bank of Thailand declared bitcoin illegal in 2013, but some bitcoin companies have been able to obtain business licenses.One startup denied a business license was reportedly told that “buying and selling bitcoins, using bitcoins to buy or sell goods and services, and transferring bitcoins in and out of Thailand were all currently illegal.”
In 2013, the Thai monetary authority, the Bank of Thailand, “issued a preliminary ruling that using bitcoins as described was illegal.”A bitcoin startup denied a business license was reportedly told that “buying and selling bitcoins, using bitcoins to buy or sell goods and services, and transferring bitcoins in and out of Thailand were all currently illegal.”
Japan:Japan wants to be the most friendly country for Bitcoin
Japan officially recognizes bitcoin and digital currencies as money.
On 7 March 2014, the Japanese government, in response to a series of questions asked in the National Diet, made a cabinet decision on the legal treatment of bitcoins in the form of answers to the questions. The decision did not see bitcoin as currency nor bond under the current Banking Act and Financial Instruments and Exchange Law, prohibiting banks and securities companies from dealing in bitcoins. The decision also acknowledges that there are no laws to unconditionally prohibit individuals or legal entities from receiving bitcoins in exchange for goods or services. Taxes may be applicable to bitcoins.
According to Nikkei Asian Review, in February 2016, “Japanese financial regulators have proposed handling virtual currencies as methods of payment equivalent to conventional currencies”.
The city of Hirosaki is officially accepting bitcoin donations with the goal of attracting international tourists and financing local projects. In 2017, the country’s government officially recognized bitcoin as a method of payment.
Korea:Korean government cools for Bitcoin
While not illegal in the country, Korean authorities will prosecute illegal activity involving bitcoin and have indicted at least one individual for purchasing drugs with bitcoin.
There are no laws in South Korea regulating the use of bitcoin at present.South Korea On December 12, 2013, the president of the Bank of Korea recommended at a press conference that bitcoin be regulated in the future.
India:India’s central bank proclaimed it will not control bitcoin temporarily
On 28 December 2013, the Deputy Governor of the Reserve Bank of India, K. C. Chakrabarty, made a statement that the Reserve Bank of India had no plans to regulate bitcoin.
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