Legality of Cryptocurrency
Now Cryptocurrency is going mainstream all over the world. The attraction, profit or risk of cryptocurrency are of top concern. How do countries in the world accept crypto and impose any regulations on it? Let’s figure out in the article.
Popular types of cryptocurrency
What is cryptocurrency?
Cryptocurrency is a digital currency that is created by complex encryption algorithms based on open source software. Cryptocurrency is exchanged through internet-connected devices instead of any intermediary.
Some coins such as Bitcoin, Ethereum, Ripple, or Litecoin,… that we often call “virtual money”, actually is cryptocurrency
Legality of Cryptocurrency in the world
The virtual currency was born very long time ago. In the United States, the first virtual currency that attracted much attention in the 1990s was e-gold.
In recent times, many kinds of virtual currencies, new cryptocurrencies appeared in the world. This quick and super-profit invesment makes cryptocurrency receive much attention from the state agencies in many countries.
Bitcoin is accepted in Japan. (Source: Reddit)
Many nations in the world accept Crypto as a mean of payment such as the US, EU, Japan,…Each country has the different legality of cryptocurrency. For example, in Europe, trading Bitcoin and other currencies is tax-exempt. Many countries have legalized crypto, and they also build legal frameworks and policies to manage the business of this currency. In Japan, cryptocurrencies such as Bitcoin or Ticket Camp are accepted and used to pay for the ticket and electronic products.
Large corporations are also catching up on this trend and accepting crypto as their means of payment such as Microsoft, Paypal, Amazon, Dell … Crypto is also used to pay the bill in many stores around the world.
Besides, many nations in the world and have rejected and banned using and trading this currency because it is very hard to manage this currency, many users use it to deceive others. While the price of Crypto increases, in some countries that of the fiat money and the shares decrease dramatically. Exchanges by Crypto can cause many crimes such as money laundering, tax evasion, smuggling.
Some countries such as China, Malaysia, India,…has prohibited Cryptocurrency from any exchanges, all transactions and payment. While in Sweden, Cryptocurrency is only banned in trading scrap metal and waste.
Bitcoin is prohibited from trading in the Vietnamese market.
Legality of Cryptocurrency in Vietnam
Prior to February 2014, Cryptocurrency in Vietnam was not restricted or regulated by law, so the transaction and the use of Crypto were very developed. However, after February 2014, the State Bank of Vietnam officially announced the legality of Crypto. The State prohibits the use of crypto in credit institutions, the use of crypto is not protected and accepted by the State, all risks are entirely user-responsible. The use of crypto in Viet Nam at this time is not illegal or breaks the laws.
This doesn’t affect the operation and investment of cryptocurrency in Viet Nam. Most of Vietnamese crypto trader trade in foreign exchanges. Instead of being considered as currency, cryptocurrency is considered as a commodity in some activities such as game farming or decoding to sell for money.
Although cryptocurrency is not widely accepted in many countries, we can not deny the value of the crypto and the development of the currency. So, if you are planning to invest in cryptocurrency, then thoroughly research and continually update the information to make the investment decision based on a clear and profound knowledge base.