Top 10: Find Out If Its Legal to Trade Cryptocurrencies in Your Country
The legality of cryptos varies depending on the legislation of each country. To find out if its legal to trade cryptocurrencies in your country, keep on reading this article.
The United States
The United States generally supports crypto trading, even though several government agencies are working to prevent the use of Bitcoin illegal transactions. Many prominent businesses accept payments in cryptos, and even the U.S. derivatives markets have begun to gain legal status.
Guidance on Bitcoin has been issued constantly since 2013, the U.S. Department of Treasurys Financial Crimes Enforcement Network (FinCEN). Crypto trading is legal in U.S., and it is subjected to taxation purposes by the Internal Revenue Service (IRS).
Canada also has a supportive attitude towards crypto, and it implements preventive measures against money laundering by the use of cryptocurrencies.
The Canada Revenue Agency (CRA) categorized cryptos as a commodity, stating on their webpage that you can use digital currencies to buy goods and services on the Internet and in stores that accept digital currencies. You may also buy and sell digital currency on open exchanges, called digital currency or cryptocurrency exchanges. However, cryptocurrencies, including Bitcoin, are not considered legal tender in Canada; only the Canadian dollar is considered official currency in Canada.
Crypto transactions are also taxed depending if the individual has a buying-selling business or only wants to use the coins for investing purposes.
The United Kingdom does not recognize cryptocurrencies as legal tender but allows the trading of digital assets. All crypto exchanges that operate in the country must have licenses from the Financial Conduct Authority (FCA) – though some crypto businesses might instead use an e-license.
In 2019, the FCA has started updating its guidelines for cryptocurrencies, with a series of consultations on crypto regulation scheduled to be released towards the end of the year.
Crypto trading is also subjected to capital gains taxes, and this tax is punishable to any gain made through a cryptocurrency.
If you are living within the Commonwealth space, it is probably legal to trade cryptocurrencies in your country. Australia is one of those countries that allow its residents to trade, mine, or buy cryptocurrencies legally.
All crypto exchanges in the country are required to register with the AUSTRAC (Australian Transaction Repo ...