A Review Of G20 Bitcoin Regulation. – Cryptocurrency Trading Log?

C O N T E N T S:


  • What Bitcoin Did is a podcast that chronicles the accidental entry into cryptocurrency trading by Peter McCormack.(More…)
  • Two of Russia’s largest banks — Alfa-Bank and Sberbank — are preparing to test cryptocurrency trading solutions for their clients.(More…)


  • This presents a risk to users of the currency because there is no protection or legal recourse available from any institution including the Central Bank in the event that the user suffers financial loss from the use of Bitcoin or any other cryptocurrency.(More…)
  • Cryptocurrency and Oil Crypto-currencies such as Bitcoin represent both a new form of global currency and an investment vehicle.(More…)


A Review Of G20 Bitcoin Regulation. - Cryptocurrency Trading Log?
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What Bitcoin Did is a podcast that chronicles the accidental entry into cryptocurrency trading by Peter McCormack. [1] Wierzycka expects more regulations to follow after the South African Revenue Service (SARS) introduced an income tax on cryptocurrency trading. [2]

Press Release, Government of Hong Kong, LCQ4: Regulation of Trading Activities of Bitcoins (Mar. 25, 2015), http://www.info.gov.hk/gia/general/201503/25/P201503250463.htm, archived at http://perma.cc/WK74-B453. [3] On March 25, 2015, the Secretary responded to another question on the regulation of bitcoin trading activities raised at the meeting of the Legislative Council. [3]

With respect to tax treatment, in January 2018 Malaysia’s Inland Revenue Board (IRB) froze the Malaysian bank account of a UK-based cryptocurrency trading platform, apparently for the purpose of conducting an audit to determine whether the company has complied with the Income Tax Act 1967, which requires tax to be paid on the income of any person accruing in or derived from Malaysia. [3] According to the IRB’s chief executive, ” ll traders should adhere to the Malaysian tax requirement by keeping proper records for audit purposes and disclose any transactions from the cryptocurrency trading when requested by IRB.” [3] Irish Tax Guide to Cryptocurrency Trading & Investing, Liam Burns & Co. Accountants and Tax Advisers, http://liamburnsandco.ie/cryptocurrency-tax-guide/ (last visited Apr. 18, 2018), archived at http://perma.cc/LH8P-E3GD. [3] Taylor Suffers 2,500 ETH Hack : Taylor, a company that recently launched an initial coin offering (ICO) to raise funds to help develop a smart cryptocurrency trading assistant, has recently been hacked for 2,578 ETH (about $1.5 million) as well as 7% of its TAY tokens. [4] Cryptocurrency trading is steadily becoming a highly used investment option. [5] On February 20, 2018, the chief of South Korea’s Financial Supervisory Service, Choe Heung-sik, said that the government would support “normal” cryptocurrency trading and encouraged financial institutions to facilitate transactions with cryptocurrency exchanges. [3]

Since launching it has grown into one of the largest non-technical resources for beginners to the cryptocurrency space including Bitcoin Basics, Bitcoin trading tips and techniques and even information about mining Bitcoins. [1] In addition to the ongoing news, there is an evergreen educational section where you can learn everything from mining an trading Bitcoin to how to create your own cryptocurrency. [1]

These new public exchanges will be trading in Bitcoin, Ethereum, Litecoin and Ripple, and the fact that they have passed the regulations and welcomed by the Tokyo Stock exchange should help inspire some investor confidence. [6]

It is a very basic interface, and there are no charts or charting tools, but it is a good way to get familiar with cryptocurrency trading so you can later transition to a real exchange using real money. [1] Two of Russia’s largest banks — Alfa-Bank and Sberbank — are preparing to test cryptocurrency trading solutions for their clients. [7] The New York Department of Financial Services has allowed cryptocurrency Stellar Lumens to trade on itBit, a cryptocurrency trading platform for institutional investors. [7]

The world’s economic leaders gathered in Buenos Aires, Argentina for the G20 summit, and sought for proposals of cryptocurrency regulations to come by July 2018 according to the G20 communique. [8] In answering these concerns from a global perspective, at the G20 Finance Ministers? meeting held in 2017, which set July 2018 as deadline for a unified cryptocurrency regulation, Japan’s Finance Minister Taro Aso was quoted as saying ” I told my G20 counterparts that no country would benefit from inward-looking policies based on protectionism [9]

Two of Russia’s largest banks — Alfa-Bank and Sberbank — are preparing to test cryptocurrency trading solutions for their clients. [10] Hinman commented that bitcoin is, and always would be, a commodity, and is thus subject to regulation from the Commodity Futures Trading Commission (CFTC) due to its stance as a “fiat replacing” currency. [11] Cryptocurrency Trading Bible Three: Winning in Sideways and Bear Markets All trading is gambling.Some people refuse to believe it but that doesn?t change it.As a society we?ve managed to dress up the big stock exchanges with an air of refined superiority. [12] According to regional news outlet Business Standard, Flintstone Technologies Private Limited — operator of cryptocurrency trading and storage platform MoneyTrade Coin — last week filed a plea before the Dehli High Court, arguing that the Reserve Bank of India’s (RBI) new policy is “arbitrary, unfair, and unconstitutional.” [13]


This presents a risk to users of the currency because there is no protection or legal recourse available from any institution including the Central Bank in the event that the user suffers financial loss from the use of Bitcoin or any other cryptocurrency. [3] The Bank also warned that “whoever wishes to invest their hard earned savings in Cryptocurrency forms such as One-coin, Bitcoin, Ripple, Peercoin, Namecoin, Dogecoin, Litecoin, Bytecoin, Primecoin, Blackcoin or any other forms of Digital Currency is taking a risk in the financial space where there is neither investor protection nor regulatory purview.” [3]

Id. 4, Bank of Israel Capital Market, Insurance and Saving Branch, Tax Authority, Securities Authority and the Prevention of Money Laundry and Financing of Terrorism Authority, Public Announcement Regarding Possible Risks Contained in Virtual Coins Such as Bitcoin (Feb. 19, 2014), http://taxes.gov.il/About/PublicAnnouncements/ PublishingImages/190214/odaa190214.pdf (in Hebrew), archived at http://perma.cc/VQ7Z-GDRQ. [3] The National Bank of Serbia made two announcements, one on October 2, 2014, and the other on May 4, 2016, to clarify that “anyone investing in bitcoins or engaging in any other activity involving virtual currencies shall do so at their own liability, bearing all financial risks and risks in terms of noncompliance with regulations governing foreign exchange operations, taxation, trade, etc.” [3] The Bank of Israel said in a January 2018 statement that “it would not recognize virtual currencies such as bitcoin as actual currency and. it was difficult to devise regulations to monitor the risks of such activity to the country’s banks and their clients,” according to Reuters. [3] In its statement the Financial Supervisory Authority emphasized that it has evaluated the use of the bitcoin system and found that it does not fall under any of the financial services categories, including the issuing of electronic money, payment for services, currency exchanges, or the issuing of mortgages; thus, bitcoin activity is not covered under current financial regulations. [3] The Swedish Skattertsnnden (Swedish Tax Board) issued a preliminary ruling in 2013 on value-added tax (VAT) and bitcoins, stating that trade in bitcoins is not subject to Swedish VAT, but is instead subject to Financial Supervisory Authority regulations and treated as a currency. [3]

The notice states that bitcoin transactions “are not authorized by the Bangladesh Bank or any regulatory agencies, and do not conform with the provisions under the Foreign Exchange Regulation Act, 1947; Anti-Terrorism Act, 2009; and the Money Laundering Prevention Act, 2012.” [3]

In 2017 the Tax Authority issued additional recommendations, stating that the exchange rate is determined at the time of realization of the bitcoin (i.e., when it becomes cash), and that cryptocurrency records should be kept for six years. [3] In 2014, the Central Bank of Iceland, in anticipation of the launch of the Icelandic peer-to-peer cryptocurrency Auroracoin, announced that bitcoin was not a recognized currency and even if it was, purchases of bitcoins would still be illegal as such purchases would have violated the foreign transactions restrictions then in place. [3] Individuals who engage in cryptocurrency transactions are advised to keep records of the date of transactions; the amount in Australian dollars (“which can be taken from a reputable online exchange”); what the transaction was for; and who the other party was (“even if it’s just their bitcoin address”). [3] Artem Petrov, Bitcoin and Others, Monetary Authorities of the Kyrgyz Republic Warn about the Risks of Using Cryptocurrency, RG.ru (Oct. 4, 2017), http://rg.ru/2017/10/04/nacbank-kr-predupredil-o-riskah-ispolzovaniia-kriptovaliut.html (in Russian), archived at http://perma.cc/BN5S-K6QL. [3] Cahal Milmo, Bitcoin: How The Isle of Man is Leading a Cryptocurrency Revolution, Independent (London) (Jan. 3, 2016), http://www.independent.co.uk/news/uk/home-news/bitcoin-how-the-isle-of-man-is-sparking-a-cryptocurrency-revolution-a6794756.html, archived at http://perma.cc/NUY8-XTS4. [3] The governor of the Bank stated, ” asically, we will let the cryptocurrency promoters including bitcoin, ethereum and ripple to be more transparent, the methods to be more transparent and people behind the scene are to be more transparent too. [3]

The Central Bank of Finland issued a statement in 2014 declaring that cryptocurrencies, especially bitcoin, are inherently associated with risks, noting that ” he use of Bitcoin is not currently supervised or regulated in any way,” nor does it not amount to a payment service as defined in the Payment Services Act. [3] The Central Bank also stated, however, that the purchase and sale of cryptocurrencies such as bitcoin through the internet are not forbidden, but it reiterated that bitcoin is not legal tender and is not an authorized payment method for goods and services according to the Cigo Orgico Monetario y Financiero (Organic Monetary and Financial Code). [3]

The Bank’s statement follows an earlier press release in 2014, in which it encouraged caution with respect to virtual currencies and stated that ” n view of the Act No. 7 Year 2012 concerning Currency and Act No. 23 Year 1999 which has been amended several times, the latest with Act No. 6 Year 2009, Bank Indonesia states that bitcoin and other virtual currency are not currency or legal payment instrument in Indonesia.” [3] According to that statement, bitcoin is a type of virtual commodity that is neither legal tender nor a financial instrument subject to the supervision of the AMCM. The AMCM warned the general public that trading in virtual commodities such as bitcoin “involves considerable risks, including but not limited to those relating to money laundering and terrorist financing.” [3] The Central Bank of Egypt issued a warning in January 2018 against the trading of cryptocurrencies, such as bitcoin, due to the extremely high risk associated with such currencies. [3] On December 29, 2017, India’s Ministry of Finance released a press statement that cautioned investors about the “real and heightened” risks of trading in cryptocurrencies such as bitcoin, saying virtual currency investments are similar to “Ponzi schemes.” [3]

Press Release, Financial Supervisory Commission Warns General Public Once Again about Risks of Investing in Virtual Commodities Such as Bitcoin (Dec. 19, 2017), http://www.fsc.gov.tw/ch/home.jsp?id96&parent path0,2&mcustomizenews_view.jsp&dataserno201712190002&aplistdnounews,oumultisite,ouchinese,ouap_root,ofsc,ctw&dtableNews (in Chinese), archived at http://perma.cc/R56Q-Z2KM. [3] On December 19, 2017, Taiwan’s Financial Supervisory Commission (FSC) issued a statement warning the general public about the risks of investing in virtual commodities such as bitcoin. [3] Denmark’s Finanstilsynet (Financial Supervisory Authority) issued a statement in 2013 rejecting the bitcoin as a currency and stating that it will not regulate bitcoin use. [3]

The Austrian National Bank (Oesterreichische Nationalbank, OeNB) does not qualify bitcoin as a currency, because it does not fulfill the typical functions of money due to a strict limitation on quantity and no stabilizing central authority. [3] Transactions to exchange a traditional currency for bitcoin or other virtual currencies and vice versa are therefore exempt from VAT. Bitcoin or other virtual currencies that are used as a means of payment for services or goods are treated the same as traditional means of payment. [3] On October 22, 2015, the European Court of Justice (ECJ) held in its decision Hedqvist that transactions to exchange a traditional currency for bitcoin or other virtual currencies and vice versa constitute the supply of services for consideration, but fall under the exemption from value-added-tax (VAT). [3]

On January 9, 2018, the Central Bank of Bosnia and Herzegovina announced that the convertible mark (the currency of Bosnia and Herzegovina) is the only legal means of payment in the country, and it is not possible to exchange bitcoins and other cryptocurrencies for convertible mark. [3] Steven Scheer, Bitcoin Is an Asset, Not a Currency – Israel’s Central Bank, Reuters (Jan. 8, 2018), http://www.reuters.com/article/uk-bitcoin-israel/bitcoin-is-an-asset-not-a-currency-israels-central-bank-idUSKBN1EX18E, archived at http://perma.cc/3458-ZY58. [3] Press Release, National Bank of Hungary, Warning: It Is Extremely Risky for Consumers to Use Bitcoin (Sept. 11, 2014), http://www.mnb.hu/fogyasztovedelem/sajtoszoba/figyelemfelhivas-rendkivul-kockazatos-a-fogyasztoknak-a-bitcoin (in Hungarian), archived at http://perma.cc/GY27-A73N. [3] Press Release, Finlands Bank, Bitcoin Involves Risk (Jan. 14, 2014), http://www.suomenpankki.fi/en/media-and-publications/news/2014/bitcoin-involves-risks/, archived at http://perma.cc/T634-EMZM. [3] Press Release, Bank Negara Malaysia, Statement on Bitcoin (Jan. 2, 2014), http://www.bnm.gov.my/index.php? chen_announcement&pgen_announcement&ac49&langen, archived at http://perma.cc/6ZXJ-W2ZR. [3] Press Release, National Bank of Slovakia, NodnBanka Slovenska’s Warning to the Public on Bitcoin (Nov. 26, 2013), http://www.nbs.sk/en/press/all-press-releases/press-release/_narodna-banka-slovenska-s-warning-to-the-public-on-bitcoin, archived at http://perma.cc/9A5B-3PCR. [3] Press Statement, Central Bank of Swaziland, Public Statement on Virtual Currencies (“Bitcoin”) (Aug. 25, 2017), http://www.centralbank.org.sz/media/releases/cbsbitcoin.jpg, archived at http://perma.cc/GF5L-MYJ5. [3] Caution to the Public on Virtual Currencies such as Bitcoin, Central Bank of Kenya (Dec. 2015), http://www.centralbank.go.ke/images/docs/media/Public_Notice_on_virtual_currencies_such_as_Bitcoin.pdf, archived at http://perma.cc/EE4P-UZ57. [3]

CoinJournal brings you the latest Bitcoin, cryptocurrency and blockchain news from around the world. [5] It further clarified that the bitcoin, as a cryptocurrency, is not backed by any authority, because its value is based merely on speculation. [3] Then finally, realize that practically speaking most of the electricity used for bitcoin mining and cryptocurrency mining is excess electricity around hydroelectric dams. [14]

Cryptocurrencies may be considered assets for capital gains tax purposes, with the guidance stating: “Where you use bitcoin to purchase goods or services for personal use or consumption, any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) provided the cost of the bitcoin is $10,000 or less.” [3] In December 2017 the acting President of the Bank of Guatemala, Sergio Recinos, confirmed that both Bitcoin and other types of cryptocurrencies are not legal tender in the country and do not have regulatory backing. [3] The Bank explained that bitcoin is not legal tender in Serbia and cannot be subject to sale and purchase by banks or licensed exchange dealers. [3] General Public is advised that Virtual Currencies/Coins/Tokens (like Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond etc.) are neither recognized as a Legal Tender nor has SBP authorized or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such Virtual Currencies/Coins/Tokens in Pakistan. [3]

In February 2018 the Supervision and Control of Financial Institution Division at Qatar’s Central Bank issued a circular to all banks operating in Qatar warning against trading in bitcoin. [3] On April 22, Iran’s Central Bank banned trading of digital currencies identified by Iran’s anti-money laundering body in December 2017, including Bitcoin, citing money laundering concerns. [15] It stated that virtual currencies like bitcoin and trading platforms are neither regulated nor supervised by the FMA. The FMA does not qualify them as legal tender payment instruments or as tradable foreign currencies. [3] Gramegna publicly welcomed the establishment of BitFlyer, a major bitcoin trading platform, as a fully licensed payment service provider in Luxembourg. [3] VULLO: Well, it certainly hasn?t taken New York long to establish a framework because New York was involved in this beginning in 2013–my agency, the Department of Financial Services–when actually bitcoin was trading at $100. [14]

He also added that cryptocurrencies such as bitcoin cannot be monitored by any legitimate financial authority. [3] This document notes that bitcoin and other cryptocurrencies are not considered financial instruments under French law, and therefore do not fall under the regulatory framework of actual currencies or under the AMF’s supervision. [3] Iran’s CB Issues Warning over Bitcoin and Other Cryptocurrencies, Financial Tribune (Nov. 14, 2017), http://financialtribune.com/articles/economy-business-and-markets/76148/irans-cb-issues-warning-over-bitcoin-and-other, archived at http://perma.cc/U8W7-VH3. [3] No Bitcoin Trade for Moneychangers, Financial Tribune (Dec. 23, 2017), http://financialtribune.com/articles/ economy-business-and-markets/78454/no-bitcoin-trade-for-moneychangers, archived at http://perma.cc/8EM7-XESG. [3] CBI Governor Urges Caution on Bitcoin Trade, Financial Tribune (Dec. 31, 2017), http://financialtribune. com/articles/economy-business-and-markets/78986/cbi-governor-urges-caution-on-bitcoin-trade, archived at http://perma.cc/7HZM-DFMF. [3]

Maja Zivanovic, Serbian Bank Advises Caution Over Bitcoin Fever, BalkanInsight (Dec. 26, 2017), http://www.balkaninsight.com/en/article/serbian-national-bank-advise-caution-with-bitcoin-12-25-2017, archived at http://perma.cc/5RM3-ZUWU. [3] Vivina Vishwanathan, Bitcoin Regulations in India, Livemint (Dec. 21 2017), http://www.livemint.com/ Money/uQIHZ7521LBgHClnuP66YM/Bitcoin-regulations-in-India.html, archived at http://perma.cc/527R-43SG. [3] CFTC staff recommends DCMs and SEFs set the threshold for filing large trader reports under Part 17 of the CFTC’s regulations at five bitcoin (or the equivalent for other virtual currencies) for virtual currency derivatives. [15]

According to an unofficial statement from the Central Bank of Chile virtual currencies have no specific legal recognition in the country and trade and transactions involving cryptocurrency are not subject to the regulation or supervision of the monetary authority. [3] On February 15, 2018, the National Bank of Moldova issued a statement recommending that Moldovans be as cautious as possible in deciding whether to invest in crypto-assets, given the technical characteristics of cryptocurrency, its high volatility, and the absence of any regulation that would protect investors. [3] He also stated that there was currently no regulation “from a monetary perspective” regarding cryptocurrencies, but that cryptocurrency dealers in Luxembourg are bound by the same rules as any other financial service providers with regards to the fight against money laundering and the financing of terrorism. [3] Kazakhstan President Calls for UN Cryptocurrency Regulations : The president of Kazakhstan, Nursultan Nazarbayev, is urging the global community to work together to draft common rules regarding the use of cryptocurrencies. [4] Malaysia’s Central Bank Issues Cryptocurrency Regulation, The Economist Intelligence Unit (Feb. 5, 2018), http://www.eiu.com/industry/article/1426386726/malaysias-central-bank-issues-cryptocurrency-regulation/2018-02-05, archived at http://perma.cc/E986-K2GA. [3]

The position of the Bank of Latvia and the State Revenue Service is that cryptocurrency is a contractual, not statutory, means of payment that can be used in transactions of exchange. [3] The Korea Financial Intelligence Unit (KFIU) issued guidelines on such reporting by banks to prevent money laundering via cryptocurrency transactions. [3] Following a crypto fraud resulting in the loss of 15 trillion Vietnamese dong ($658 million), the Vietnamese government issued a directive to six government ministries, in addition to financial institutions including Vietnam’s central bank, to tighten oversight and management of cryptocurrency activities within the country. [15] The government of Gibraltar has expressed concern over the use of tokenized digital assets (tokens) and cryptocurrency given by companies to raise capital and bypass the traditional, regulated, capital-raising process required by financial institutions or venture capitalists. [3] The MFSA would be the regulator for the financial services contained in the Virtual Currency Bill, and would have regulatory and investigatory powers that reflect those contained in the country’s other financial services laws, including the authority to suspend an ICO or trading of a cryptocurrency. [3]

Which cryptocurrencies remain unregulated in Russia, the country’s Ministry of Justice has Alexander Konovalov has indicated that he considered cryptocurrency to be “other property” under the law and that digital coins should not be considered electronic money. [15] The FCA does not currently regulate cryptocurrencies unless they are part of other regulated products or services; however, cryptocurrency derivatives could be considered financial instruments under the EU’s Markets in Financial Instruments Directive II (MiFID II). [15] Duncan Hughes, ATO Creates Specialist Task Force to Tackle Cryptocurrency Tax Evasion, Financial Review (Jan. 10, 2018), http://www.afr.com/news/policy/tax/ato-creates-specialist-task-force-to-tackle-cryptocurrency-tax-evasion-20180109-h0fyaz, archived at http://perma.cc/VNY2-R6G3. [3] Romanian Banks Stop Working with Cryptocurrency Platforms, Romania-Insider.com (Feb. 19, 2018), http://www.romania-insider.com/banks-stop-working-cryptocurrency-platforms/, archived at http://perma.cc/Z5HE-SA2G. [3] On January 15, 2018, the National Bank of Tajikistan issued a statement warning the citizens of the republic about the risks associated with the use of cryptocurrency. [3] On July 13, 2017, the Bank of Albania declared that the legal and regulatory framework then in place did not envisage carrying out operations with cryptocurrency in Albania and users were exposed to certain risks. [3]

The exchange of cryptocurrency for fiat money must be approved by the National Bank. [3] The exchange of a cryptocurrency for fiat money or a different cryptocurrency as well as the offering of services to transfer tokens if the service provider maintains the private key (custody wallet provider) equally trigger the due diligence requirements according to the Anti-Money Laundering Act. [3] The FMA has also published commentary on initial coin offers (ICOs) and cryptocurrency services (including exchanges, wallets, and brokering). [3] Value added tax (VAT) (approximately equivalent to U.S. sales tax) is only chargeable from suppliers for any goods or services sold in the UK in exchange for cryptocurrency. [3] The Bank also clarified that in Tajikistan cryptocurrency cannot be considered an official means of exchange or savings, or a unit of account. [3]

It also refers to Bank Indonesia Regulation No. 18/40/PBI/2016 on Implementation of Payment Transaction Processing and Bank Indonesia Regulation No. 19/12/PBI/2017 on Implementation of Financial Technology in affirming that, as the payment system authority, the Bank forbids all payment system operators and financial technology operators in Indonesia from processing transactions using virtual currencies. [3] The Office called on the persons concerned to abide by the exchange regulations, which provide that financial transactions with foreign entities must be effectuated through approved intermediaries and with foreign currencies listed by the Bank Al-Maghrib. [3] The SARB warned of various risks associated with the use of VCs, including issues relating to payment systems and payment service providers, price stability, money-laundering and terrorism financing, consumer risk, circumvention of exchange control regulations, and financial stability. [3]

Proceeds of Crime (Miscellaneous Amendments) (Jersey) Regulations 2016, R&O 63/2016, http://www.jersey law.je/laws/enacted/PDFs/RO-063-2016.pdf, archived at http://perma.cc/F2H5-2KNV ; Proceeds of Crime (Supervisory Bodies) (Virtual Currency Exchange Business) (Exemption) (Jersey) Order 2016, Revised Laws of Jersey, http://www.jerseylaw.je/laws/revised/PDFs/08.785.80.pdf, archived at http://perma.cc/A8W9-7753. [3] The Central Bank further stated that converting instruments in and out of the Bahamian currency would be governed by Exchange Control Regulations, and that ” he Securities Commission of The Bahamas would reserve the right to supervise any non-payments aspect of crypto currency operations domiciled in The Bahamas.” [3] Despite not having legislation specifically designed to addresses cryptocurrencies, the Central Bank of the Bahamas has stated that regulations it issued in 2017, which provide a framework for a system of national electronic payments services, also apply to cryptocurrencies. [3] Top financial policymakers in South Korea, including the country’s Financial Supervisory Service (FSS), have agreed to recognize cryptocurrencies as financial assets and regulate them based on the unified regulations set forth by the G20 nations. [15] A review of Russia’s “On Digital Financial Assets” draft bill specifies that large crypto to fiat exchanges are subject to certain regulations, local sources re. [16] To facilitate such activities in our market and put in place appropriate einvestor safeguards, SC is reviewing relevant regulations and guidelines to facilitate functional and effective use cases of digital assets in the capital market, including secondary market trading of established crypto currency and digital assets. [3] Bangkok Bank halted transactions involving the trading of cryptocurrencies with a private Thai company, Thai Digital Asset Exchange (TDAX), on February 24, 2018. [3]

The notice further stated that companies that negotiate bitcoins are not regulated, authorized, or supervised by the Bank; that such virtual currency offers no security, being vulnerable to fraud and other crimes perpetrated using computer means; that its price is highly volatile; and that it allows for the execution of anonymous transactions, favoring criminal activities. [3] He also said that, based on studies by the BNB and the European Central Bank, bitcoin does not present any significant risks to price stability, to the financial system in general, or to its individual users. [3] The President of the European Central Bank (ECB), Mario Draghi, warned that bitcoin and other digital currencies are “very risky assets” due to their high volatility and speculative prices. [3] South Africa Insists on Calling Cryptocurrencies ‘Tokens’ : South Africa’s central bank is choosing to call cryptocurrencies like bitcoin as “cyber-tokens? rather than currencies, arguing they do not “meet the requirements of money?. [4] Due to this, the statement said, Bitcoin and similar cryptocurrencies are not recognized as legal tender in the country and do not have the backing of the Central Bank or the state of Costa Rica. [3] Statement, Central Bank of Iraq, Bitcoin (Dec. 3, 2017), http://cbi.iq/news/view/512 (in Arabic), archived at http://perma.cc/JG54-PDHV. [3] Omar Obeidat, Central Bank Warns Against Using Bitcoin, Jordan Times (Feb. 22, 2014), http://www.jordan times.com/news/local/central-bank-warns-against-using-bitcoin, archived at http://perma.cc/LJ9J-7FS7. [3]

Sana Elouazi, Bye-Bye Bitcoin: Morocco Bans Cryptocurrencies, Morocco World News (Nov. 21, 2017), http://www.moroccoworldnews.com/2017/11/234382/bitcoin-morocco-cryptocurrencies-economy/, archived at http://perma.cc/2SEL-XLAU. [3] Jonathan Underhill, IRD Sets its Sights on Bitcoin and Cryptocurrencies, New Zealand Herald (Dec. 22, 2017), http://www.nzherald.co.nz/business/news/article.cfm?c_id3&objectid11964722, archived at http://perma.cc/M8PB-J5R3. [3] Religious Decree No. 4205, The Status of Transactions in Bitcoins and other Cryptocurrencies under Islamic Law, Egypt’s Dar al-Ifta (Dec. 28, 2017), http://www.dar-alifta.org/ar/ViewFatwa.aspx’secfatwa&ID14139 (in Arabic), archived at http://perma.cc/432D-NHE5. [3] Under the circumstances, the citizens have been asked to refrain from performing, assisting, and advertising all kind of transactions through virtual currencies like Bitcoin to avoid financial and legal damages. [3] The Financial Market Authority of Liechtenstein (Finanzmarktaufsicht, FMA) has issued a factsheet on virtual currencies like bitcoin. [3] For example in 2014 it published a binding reply (a response to a public question from a taxpayer that is binding on the interpretation of the Tax Authority) in which it declared that an invoice amount cannot be issued in bitcoins, but must be issued in Danish kroner or another recognized currency. [3] Bitcoins are not legal currency strictly speaking, since they are not issued by the government monetary authority and are not legal tender. [3] In December 2017, the governor of the BNB, Jan Smets, repeated in an interview that bitcoin is not an actual currency, as it is not guaranteed by a central bank or a government as a means of payment. [3] Press Release, Government of Hong Kong, LCQ1: Monitoring the Use of Bitcoins (Jan. 8, 2014), http://www. info.gov.hk/gia/general/201401/08/P201401080357.htm, archived at http://perma.cc/AY9N-B58F. [3] The Hong Kong Government and financial regulators will also keep a close watch on the development of bitcoin and other virtual commodities, he said. [3] In the statement, the Secretary reiterated there were no specific regulatory measures on virtual commodities such as bitcoin in Hong Kong, but existing laws provide for sanctions against unlawful acts such as money laundering, terrorist financing, fraud, pyramid schemes, and cybercrimes, with or without virtual commodities being involved. [3] In the statement, the regulators said bitcoin is not a real currency, but a “highly speculative virtual commodity.” [3]

Cryptocurrencies, including Bitcoin, are not considered legal tender in Canada; ” nly the Canadian dollar is considered official currency in Canada.” [3] The Superintendencia Financiera (SF) (Financial Superintendency) of Colombia warned in a June 2017 circular that bitcoin is not currency in Colombia and therefore may not be considered legal tender susceptible of cancelling debts. [3] Financial transactions with bitcoins are not controlled, supervised, or regulated by any Ecuadoran entity, and therefore they represent a financial risk for those who invest in them. [3] On December 19, 2013, the Banque du Liban (BDL), the Lebanese Central Bank, issued a notice to the country’s banks and financial institutions warning them of the dangers of using cybercurrencies, especially bitcoin. [3] The governor of the Central Bank of Bahrain, Rasheed Al Maraj, has issued a warning against cryptocurrencies, especially bitcoin. [3] The response stated that cryptocurrencies such as bitcoin, ethereum, litecoin, and other similar cryptocurrencies do not have the backing of the Central Bank of Honduras. [3] The government of India stated in early 2018 that cryptocurrencies such as bitcoin are not legal tender in India. [3]

In November 2014 the Central Bank of Montenegro reportedly issued a warning saying that individuals may own bitcoins at their own risk, although virtual currencies are not legal tender in Montenegro. [3] Previously, on December 30, 2013, Taiwan’s Central Bank and the FSC jointly issued a statement warning the public about the risks inherent in dealing with bitcoin. [3] Previously, on June 17, 2014, the AMCM issued a statement warning about the risks of bitcoin transactions. [3] The Norwegian Tax Authority has issued a principle statement that bitcoins will be treated as capital property, at least for tax purposes. [3] The Finnish Tax Authority (Vero Skatt) issued instructions for the income taxation of virtual currencies, including bitcoin, in 2013. [3] The Icelandic Tax Authority has issued guidelines for filing income taxes for the tax year 2017, requiring that bitcoins be included under section 4.4, ” Aar eignir ur aldar ” (Other Assets). [3]

Marin Marinov, Legal and Tax Treatment of Bitcoin in Bulgaria, Ruskov & Colleagues (Nov. 20, 2017), http://www.ruskov-law.eu/bulgaria/article/legal-tax-treatment-bitcoin.html, archived at http://perma.cc/ZA9H-4RGF. [3] Stan Higgins, Icelandic Lawmaker Floats Bitcoin Mining Tax, Coindesk (Feb. 12, 2018), http://www.coindesk. com/icelandic-lawmaker-floats-bitcoin-mining-tax/, archived at http://perma.cc/WZ2B-BTXD. [3] India Turns Against Bitcoin but Embraces Blockchain, Bloomberg (Feb. 1, 2018), http://www.bloomberg. com/news/articles/2018-02-01/india-to-curb-cryptocurrency-use-while-embracing-blockchain, archived at http://perma.cc/A5QP-YPBB. [3] El Banco Central Argentino Considera Riesgoso Operar con Bitcoins, Infotecnolog’a (May 28, 2014), http://www.infotechnology.com/internet/El-Banco-Central-argentino-considera-riesgoso-operar-con-bitcoins-20140528-0003.html, archived at http://perma.cc/746A-JBYG. [3] Banco Central de Bolivia Prohibe el Uso del Bitcoin y Otras 11 Monedas Virtuales, Enlaces Bolivia (Apr. 2017), http://www.enlaces bolivia.net/9263-Banco-Central-de-Bolivia-prohibe-el-uso-de-bitcoins-y-otras-11-monedas-virtuales, archived at http://perma.cc/GFR6-7JSK. [3]

Rohan Pearce, Government Cracks Down on Bitcoin Money Laundering, Computerworld (Aug. 17, 2017), http://www.computerworld.com.au/article/626134/government-cracks-down-bitcoin-money-laundering/, archived at http://perma.cc/PW5D-U3SD. [3] That report explained that bitcoin cannot be considered a real currency or means of payment under current French law, and criticized it as a vehicle for speculation as well as an instrument for money laundering and other illegal activities. [3] Bank Indonesia affirms that virtual currencies, including bitcoin, are not recognized as legitimate instrument of payment, therefore not allowed to be used for payment in Indonesia. [3] According to the notice, banks and payment institutions in China are prohibited from dealing in bitcoins. [3] Stine Jacobsen, Danish Central Bank Head Issues Stark Warning on “Deadly” Bitcoin, Reuters (Dec. 2017), http://in.reuters.com/article/bitcoin-denmark/danish-central-bank-head-issues-stark-warning-on-deadly-bitcoin-idINKBN1EC19R, archived at http://perma.cc/QSM3-QGJZ. [3] Golam Mowla, Central Bank Issues Notice Banning Bitcoin in Bangladesh, Dhaka Tribune, (Dec. 27, 2017), http://www.dhakatribune.com/business/banks/2017/12/27/bangladesh-bank-ban-bitcoin/, archived at http://perma.cc/T6DH-Y9G5. [3]

Cryptocurrencies such as Bitcoin are not regulated and therefore, the Central Bank warns about the possible losses that people using them are exposed to. [3] Canada allows the use of cryptocurrencies, including Bitcoin. [3] On January 8, 2014, in replying to a question raised at the meeting of the Legislative Council on the use of bitcoin, the Secretary for Financial Services and the Treasury said virtual currencies such as bitcoin are not considered as legal tender but are virtual commodities in Hong Kong, and warned about the risks of using virtual currencies. [3] The new law treats virtual currencies, including Bitcoin, as “money service businesses” for the purposes of the anti-money laundering law. [3] Christine Duhaime, Canada Implements World’s First National Bitcoin Law, Duhaime Law (June 22, 2014), http://www.duhaimelaw.com/2014/06/22/canada-implements-worlds-first-national-bitcoin-law/, archived at http://perma.cc/Z3AQ-SKME. [3] Minister of Finance: Bitcoin is Not in Line with the Law, Kementerian Keunangan, (Jan. 25, 2018), http://www.kemenkeu.go.id/en/publications/news/minister-of-finance-bitcoin-is-not-in-line-with-law/, archived at http://perma.cc/3MEJ-HHUP. [3] Ministry of Finance Says Does Not Recognize Virtual Currency Bitcoin, Arab Times (Dec. 18, 2017), http://www.arabtimesonline.com/news/ministry-finance-says-not-recognise-virtual-currency-bitcoin/, archived at http://perma.cc/DBZ9-E66N. [3] ” Bitcoin Is Not a Virtual Currency, ” German Bundesbank (Feb. 20, 2018), http://www.bundesbank.de/ Redaktion/EN/Topics/2018/2018_02_19_diskussion_bitcoin.html?http1, archived at http://perma.cc/K8EK-VZJM. [3]

On January 8, 2018, the Mozambican Federal Reserve Bank (Banco de Mombique), issued a notice (Comunicado) in its role as supervisor of the financial system in the country informing citizens that a decentralized and convertible virtual currency called bitcoin is circulating in the national territory. [3] The Saudi Arabian Monetary Agency (SAMA) has issued a warning against bitcoin because it is not being monitored or supported by any legitimate financial authority. [3] On March 23, 2018, the U.S. Securities and Exchange Commission (” SEC “) issued an order instituting proceedings to determine whether it will approve or disapprove a proposal for Bitcoin futures exchange-traded funds (” ETFs “) (the ” Order “). [15] In early October 2017, a police team from the Central Investigation Bureau (CIB) of the Nepal Police “for the first time arrested seven persons for allegedly running bitcoin exchange business from various parts of the country,” the Kathmandu Post reported. [3] If an entity is in the business of mining bitcoin, or buying and selling bitcoin as an exchange service, any income derived must be included in its assessable income, and any expenses incurred may be deducted. [3] We provide regulatory investigations and compliance counseling, litigation support, consumer protection counseling and business transaction assistance on a range of bitcoin and digital currency systems, services and products. [15] AMCM, Caution Against Engagement in Bitcoin Transactions (June 17, 2014), http://www.gcs.gov.mo/show News.php?DataUcn79457&PageLangC (in Chinese), archived at http://perma.cc/U5ET-8ZFW, English translation at http://www.gcs.gov.mo/showNews.php?DataUcn79459&PageLangE, archived at http://perma.cc/EWM6-GKK5. [3] PBOC, MIIT, CBRC, CSRC, and CIRC Notice on Precautions Against the Risks of Bitcoins (Dec. 3, 2013), http://www.miit.gov.cn/n1146295/n1652858/n1652930/n3757016/c3762245/content.html (in Chinese), archived at http://perma.cc/S4DN-DXHD. [3] CBCG: You Can Possess Bitcoins but at Your Own Risk, Vijesti (Nov. 30, 2014), http://www.vijesti.me/vijesti/ cbcg-mozete-posjedovaati-bitkoine-ali-na-sopstveni-rizik-807566 (in Montenegrin), archived at http://perma.cc/SNH7-6MKK. [3] Mara Laudonia, El Vac’o Legal del Bitcoin, Es o No Es Dinero?, Tam (Feb. 28, 2018), http://www.telam.com.ar/notas/201702/180185-el-vacio-legal-del-bitcoin-es-o-no-es-dinero.html, archived at http://perma.cc/P2WE-L8F9. [3] The circular defined bitcoin as “by nature a special virtual commodity,” which “does not have equal legal status as currencies” and “cannot and should not be circulated in the market as a currency.” [3] Whatever legal status bitcoin has is under ordinary law relating to contracts, tax obligations etc. [3] The general guidance follows the finalization, in December 2014, of various rulings relating to the application of tax laws to bitcoin and other cryptocurrencies. [3] Central Bank of Bangladesh, Cautionary Notice on Bitcoin Transactions, supra note 589 (English translation from the original Bengali provided by Law Library Reference Librarian Shameema Rahman). [3] Egypt’s Dar al-Ifta, the primary Islamic legislator in Egypt, has issued a religious decree classifying commercial transactions in bitcoin as haram (prohibited under Islamic law). [3] PAGLIERY: The term that I keep hearing from the law enforcement folks is that this is prosecution futures, right? I mean, if you are using something like bitcoin to commit crime, and you cash out at some point, like you?ve got to realize that this public ledger has all these transactions in there permanently. [14] The general public was warned about the specific risks associated with accepting, trading, or holding bitcoin. [3] On May 14, the New York Department of Financial Services (DFS) authorized Gemini Trust Company, LLC to offer custodial services and trading of Zcash, Litecoin, and Bitcoin Cash. [15] Recently, a global phenomenon of trading a virtual currency called bitcoin became active around the world. [3] According to data as of a May 22, 2018 trading date, the trading volume for CME bitcoin futures contracts (BTC) in prospective lead months is also low, with as few as 5 trades for September 2018 contracts. [15]

The CBK has asked the Ministry of Commerce and Industry to warn consumers about the risks of cryptocurrencies such as bitcoin. [3] Pete Rizzo, Plan to Distribute Bitcoin in Dominica Shelved, Coin Desk (Feb. 10, 2015), http://www.coindesk. com/plan-distribute-bitcoin-dominica-shelved/, archived at http://perma.cc/ZV5K-6NQP. [3] Artem Yerkanyan, Bitcoin of Armenian Origin, New Time (Feb. 10, 2018), http://nv.am/bitkoin-armyanskogo-proishozhdeniya/ (in Russian), archived at http://perma.cc/C6T9-ZFBX. [3] Sok Chan, Bitcoin a Risky Business, NBC Warns, Khmer Times (Dec. 6, 2017), http://www.khmertimeskh. com/5094114/bitcoin-risky-business-nbc-warns/, archived at http://perma.cc/8UC3-4HFK. [3]

Daniel Palmer, Finland Mandates Cold Storage, Public Auctions of Seized Bitcoins, Coindesk (Feb. 20, 2018), http://www.coindesk.com/finland-releases-new-guidelines-for-storage-of-confiscated-bitcoins/, archived at http://perma.cc/GT87-C7EF. [3] Steuerverwaltung, Kryptowrungen (Bitcoin, Ethereum, Tokens usw.): Merkblatt Steuern f Privatpersonen (Nov. 30, 2017), http://www.zg.ch/behoerden/finanzdirektion/steuerverwaltung/krypto waehrungen/download/Kryptowaehrungen%20-%20Merkblatt%20def.%20-%2030.11.2017.pdf/download, archived at http://perma.cc/VGX2-C5HS. [3] Press Release, Stadt Zug, Von Bitcoin zu Blockchain-Anwendungen (Nov. 15, 2016), http://www.stadtzug.ch/de/ueberzug/ueberzugrubrik/aktuelles/aktuelles informationen/welcome.php?actionshowinfo&info_id351680&ls0&sq&kategorie_id&date_from&date_to, archived at http://perma.cc/LZL9-CNHR. [3] Press Release, Sveriges Riksbank, Bitcoin inte pengar (Mar. 14, 2018), http://www.riksbank.se/sv/press-och-publicerat/nyheter-och-pressmeddelanden/nyheter/2018/bitcoin-ar-inte-pengar/, archived at http://perma.cc/KXK7-PPW8. [3] Press Release, Finanstilsynet, Advarsel mod virtuelle valutaer (bitcoin m.fl.) (Dec. 17, 2013), http://www.finanstilsynet.dk/da/Nyheder-og-Presse/Presse meddelelser/Arkiv/Presse-2013/Advarsel-mod-virtuelle-valutaer-bitcom-mfl-2013, archived at http://perma.cc/UZ2E-G7S7. [3]

HM Revenue & Customs, Revenue and Customs Brief 9 (2014): Bitcoin and Other Cryptocurrencies (Mar. 3, 2014), http://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies, archived at http://perma.cc/MP2E-GQKV. [3] JosTrecet, Declaraci de Impuesto a la Renta: Co Tributan los Bitcoins en la Renta, Bolsaman’a (Mar. 1, 2018), http://www.bolsamania.com/declaracion-impuestos-renta/como-tributan-los-bitcoins-en-la-renta/, archived at http://perma.cc/G4Y7-A59M. [3] Gabriel Serberg, Ekonomiska kommentarer, r Bitcoin och andra kryptotillggar pengar?, Sveriges Riksbank (Mar. 14, 2018), http://www.riksbank.se/globalassets/media/rapporter/ekonomiska-kommentarer/svenska/2018/ar-bitcoin-och-andra-kryptotillgangar-pengar, archived at http://perma.cc/PDP4-X2HU. [3] Raymond Orta, Efectos sobre el Bitcoin y otras Criptomonedas del Decreto sobre Creaci del PETRO y la Superintendencia de los Criptoactivos, TuAbogado.com ( Dec. 28, 2017), http://www.tuabogado. com/venezuela/secciones/derecho/informatico/efectos-sobre-el-bitcoin-y-otras-criptomonedas-del-decreto-sobre-creacion-del-petro-y-la-superintendencia-de-los-criptoactivos-raymondorta, archived at http://perma.cc/3RU6-ANVU. [3] Achats de Bitcoin: l’AMF et l’ACPR mettent en garde les argnants, AMF, ACPR (Dec. 4, 2017), http://acpr.banque-france.fr/sites/default/files/medias/documents/ 20171204-cp-bitcoin.pdf, archived at http://perma.cc/CM6Q-EGUH. [3] ACPR, Position de l’ACPR relative aux opations sur Bitcoins en France (Jan. 29, 2014), http://acpr.banque-france.fr/sites/default/files/20140101_acpr_ position_bitcoin.pdf, archived at http://perma.cc/M6YT-EG6J. [3] Attention l’argent virtuel, comme Bitcoin, BNB, FSMA (Jan. 15, 2014), http://www.nbb.be/fr/articles/attention-largent-virtuel-comme-bitcoin, archived at http://perma.cc/H457-2T49. [3] Momsfritagelse og lsumsafgift – K og salg af Bitcoins, SKAT (Jan. 26, 2016), http://skat.dk/skat.aspx?oid2225268, archived at http://perma.cc/XZG2-WB6J. [3] Bitcoins, ikke erhvervsmsig begrundet, anset for skilt virksomhed, SKAT (Apr. 1, 2014), http://www.skat.dk/SKAT.aspx?oId2156173, archived at http://perma.cc/6B89-6WQ2. [3] Jima Augustin, A&B Looking to Embrace Bitcoin, The Daily Observer (Apr. 28, 2017), http://antiguaobserver. com/ab-looking-to-embrace-bitcoin/, archived at http://perma.cc/KLV5-8VXM. [3] Finance Minister Plans to Start Taxing Bitcoin, The Slovak Spectator (Jan. 8, 2018), http://spectator.sme.sk/ c/20733083/financial-minister-plans-to-start-taxing-bitcoin.html, archived at http://perma.cc/NN5W-JEJY. [3] Bitcoin Event in Dominica Cancelled, Dominica News Online (Feb. 11, 2015), http://dominicanewsonline. com/news/homepage/news/business/bitcoin-event-in-dominica-cancelled/, archived at http://perma.cc/6T86-CC65. [3] Carl-Ludwig Thiele, Beware Bitcoin, FAZ (Feb. 4, 2018), http://www.bundesbank.de/Redaktion/ EN/Standardartikel/Press/Contributions/2018_02_04_thiele_fas.html, archived at http://perma.cc/X9UM-GYPE. [3] Possibilitdi pagamento imposte in Bitcoin, Comune di Chiasso (Feb. 1, 2018), http://www.chiasso.ch/possibilita-pagamento-imposte-bitcoin/, archived at http://perma.cc/2VR9-STWR. [3] Golam Mowla, Police on the Hunt for Bitcoin Users in Bangladesh, Dhaka Tribune (Feb. 19, 2018), http://www.dhakatribune.com/bangladesh/crime/2018/02/19/police-hunt-bitcoin-users-bangladesh/, archived at http://perma.cc/M782-EKLR. [3] Bitcoin mining og tilrighedsstillelse af datakapacitet – moms og godtgelse af elafgifter, SKAT (June 27, 2017), http://skat.dk/skat. aspx?oid2249418, archived at http://perma.cc/N772-UTZQ. [3] Gevinst og tab ved afstlse af bitcoins, SKM2018.104.SR, Case No. 17-1369067, SKAT (Feb. 27, 2018), http://skat.dk/skat.aspx?oid2271294, archived at http://perma.cc/PT9E-BZ3R (emphasis added). [3] Banque de France, Les dangers li au deloppement des monnaies virtuelles: l’exemple du bitcoin, Focus No. 10 (Dec. 5, 2013), http://publications. banque-france.fr/sites/default/files/medias/documents/focus-10_2013-12-05_fr.pdf, archived at http://perma.cc/K93L-HLAC. [3] Un ancien de la Banque de France chargd’une mission sur le bitcoin, AFP / Le Point (Jan. 15, 2018), http://www.lepoint.fr/economie/un-ancien-de-la-banque-de-france-charge-d-une-mission-sur-le-bitcoin-15-01-2018-2186834_28.php, archived at http://perma.cc/R6CD-GCV9. [3] Comment mieux contrer le bitcoin? Koen Geens a un plan, RTBF.be (Apr. 15, 2017), http://www.rtbf.be/info/economie/detail_comment-mieux-controler-le-bitcoin-koen-geens-a-un-plan?id9581709&utm_sourcedlvr.it&utm_mediumtwitter, archived at http://perma.cc/3VNZ-CA5W. [3] Patrik Sk, Skattefvaltningen: Bitcoin ger miljoner i skatteintter, YLE (Sept. 24, 2017), http://svenska.yle.fi/artikel/2017/09/24/skatteforvaltningen-bitcoin-ger-miljoner-i-skatteintakter, archived at http://perma.cc/2VSH-ZQ3V. [3] Jeremy Kahn, Greetings From Bitcoin Island, Bloomberg Markets (Sept. 7, 2015), http://www.bloomberg. com/news/features/2015-09-07/isle-of-man-tax-haven-with-tailless-cats-becomes-bitcoin-hub, archived at http://perma.cc/4MMD-C3CH. [3] Mubarak Zeb Khan, FBR Goes After Bitcoin Trader, Dawn (May 25, 2017), http://www.dawn.com/news/ 1335184, archived at http://perma.cc/7VBW-LL6C. [3] Skattertsnnden, Fhandsbesked, Mervdesskatt: Handel med bitcoins (Oct. 14, 2013), http://skatterattsnamnden.se/skatterattsnamnden/forhandsbesked/2013/forhands besked2013/mervardesskatthandelmedbitcoins.5.46ae6b26141980f1e2d29d9.html, archived at http://perma.cc/AET4-3T4N. [3]

Goods and services tax (GST) is also payable and is calculated on the market value of the goods or services, which is “ordinarily equal to the fair market value of the bitcoin at the time of the transaction.” [3] In a 2013 statement the Norwegian Tax Authority determined that the sale of bitcoins by a commercial actor was subject to a 25% VAT as the trade in bitcoins on a web-based site is an electronic service subject to VAT and not a VAT-exempt financial service. [3] The Swedish Financial Supervisory Authority (Finansinspektionen) has made the determination that bitcoins are subject to its authority, as trade in bitcoins (i.e., offering a site where bitcoins can be bought and sold similar to an exchange) is a financial service ( annan finansiell verksamhet ) and thus subject to mandatory reporting requirements. [3]

Chinese Bitcoin exchanges have begun to demand users to provide detailed information on the origin of their funds and how they intend to use the funds they acqu. [16] In 2017 the Director of the Danish Central Bank issued warnings against the use of bitcoin. [3] On January 2, 2014, Bank Negara Malaysia (Malaysia’s central bank) issued a statement saying that ” he Bitcoin is not recognised as legal tender in Malaysia. [3] In 2014, it issued an initial statement declaring that bitcoin is not a currency. [3] Referred to in some reports as “Bitcoin Island,” many establishments across the Island already accept bitcoins as payment alongside its national currency. [3] According to Dirk Schrade, Bundesbank expert in the area of payments, bitcoin is neither a virtual currency nor digital money, because it does not fulfill the typical functions of a currency, nor is it part of the national monetary system. [3] Bitcoin is currently not covered by the E-Money Act or the Payment Services Act. [3] The Central Bank of Ecuador has stated that Bitcoin is not an authorized payment method in Ecuador. [3] Hinman also said that, in his view, Bitcoin is not a security either, reinforcing what SEC Chairman, Jay Clayton, stated in his remarks recently on CNBC. The main topic of Hinman’s speech focused on whether a digital asset offered as a security can, over time, become something other than a security. [15]

Blockchain technology has always been focused on disruption, from the financial overalls promised by Bitcoin. [5] They have developed several prototypes to study the way the bitcoin software can be adapted and used for financial market infrastructures. [3] During a parliamentary session that took place in the Shura Council, Al Maraj declared that the bitcoin is not recognized by any financial institution. [3]

Since the SEC charged a former bitcoin exchange and its founder in February 2018 with fraud, more and more crypto exchanges have voluntarily shuttered. [17] Clayton divided cryptoassets into two categories: (i) a “pure medium of exchange,” e.g. Bitcoin, which he indicated is considered to not be a security; and (ii) tokens, which are used to finance projects. [15] Swiss authorities have given the first Bitcoin business an operator licence in accordance with AML/KYC regulations. [16] One bill addresses this issue and would amend the Civil Code to include regulation of cryptocurrency payments; the second involves legalizing initial coin offerings (ICOs). [15] The Maltese government has actively encouraged the development of cryptocurrency and issuing many consultations and papers that discuss its regulation and development. [3] On January 24, 2018, Prime Minister Morawiecki stated that Poland will either ban cryptocurrency or introduce regulations to ensure that it does not turn into a pyramid scheme. [3] Digital currency operators and users say cryptocurrency requires relaxation of these regulations to function efficiently. [16] It is expected that the legislative framework for cryptocurrency regulation will be enacted by July 1, 2018, after which the rules on the taxation of cryptocurrency operations will be introduced. [3]

Bulgaria Central Bank Warns Consumers of Cryptocurrency Risks, Reuters (Feb. 14, 2018), http://www.reuters.com/article/crypto-currency-bulgaria/bulgaria-central-bank-warns-consumers-of-cryptocurrency-risks-idUSL8N1Q45KW, archived at http://perma.cc/YKZ9-9F6R. [3] SFC Warns of Cryptocurrency Risks, Securities and Futures Commission (Feb. 9, 2018), http://www.sfc.hk/ edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo18PR13, archived at http://perma.cc/K72W-NUTC. [3] Press Release, Canadian Securities Administrators, Canadian Securities Regulators Outline Securities Law Requirements That May Apply to Cryptocurrency Offerings (Aug. 24, 2017), http://www.securities-administrators.ca/aboutcsa.aspx?id1606, archived at http://perma.cc/4KL4-YSEV. [3] Frankie Crowhurst, Thailand to Introduce New Cryptocurrency Laws, Crypto Daily (Mar. 18, 2018), http://cryptodaily.co.uk/2018/03/thailand-introduce-new-cryptocurrency-laws/, archived at http://perma.cc/BX79-JJ24. [3] P. Suchetana Ray, Govt Plans to Bring in Law to Regulate Cryptocurrency Trade, Forms Panel, Hindustan Times (Jan. 14, 2018), http://www.hindustantimes.com/india-news/government-plans-to-bring-in-law-to-regulate-cryptocurrency-trade/story-SpAO63DDfk6Gg7lo5yNKCJ.html, archived at http://perma.cc/6HLK-G9LD. [3]

VULLO: Yeah, I don?t think we know on that, but I wanted to comment on your anonymity point because there’s a way that potentially–and I?m not a technology person so–but there’s a way that actually, you know, blockchain and other technology behind cryptocurrency could actually aid–but it’s an after-the-fact thing–in sort of law enforcement purposes. [14] Though the government expects new laws regarding cryptocurrencies will be enacted in the future, it decided to implement temporary measures to protect cryptocurrency investors. [3] On April 28, a government minister of Iran stated that the country has developed an experimental local cryptocurrency, which would not be affected by the country’s wider ban on cryptocurrencies. [15] On February 12, 2018, the chairman of the board of Azerbaijan’s Central Bank, Elman Rustamov, stated that cryptocurrency is a very volatile instrument and urged the population to be more careful in dealing with cryptocurrencies. [3] The Central Bank of Iceland has not commented on whether cryptocurrency transactions are transactions “carried out between residents and nonresidents without the intermediation of a financial undertaking.” [3] Because the Cabinet delegates its authority over most of the matters under the Payment Services Act to the Financial Services Agency (FSA) ( id. art. 104), the FSA is the regulatory agency of cryptocurrency transactions. [3] The exchange business must keep accounting records of its cryptocurrency transactions and submit a report on the business to the Financial Services Agency (FSA) annually. [3]

The Bank believes that, due to their anonymity, many cryptocurrency transactions can be used for conducting doubtful operations. [3] After one of Malta’s largest banks, the Bank of Valletta, blocked cryptocurrency transfers, the government of Malta stated that it does not “interfere with individual banks’ operational policies, which are dictated by circumstances which they are best placed to assess.” [3] On December 20, 2017, the National Bank of Georgia confirmed that cryptocurrency is not legal tender in Georgia and is not regulated by Georgian law. [3] On February 6, 2018, Romania’s National Bank announced that it discourages any involvement of local credit institutions in the cryptocurrency sector because of reputational risks. [3] Section 2A of the Bank of England Act 1998 specifies that the Bank of England has responsibility to both protect and enhance the stability of the financial system of the UK. Pursuant to this objective, the Bank has considered the risk cryptocurrencies pose to the stability of the UK’s financial markets and determined that the size of the cryptocurrency market is currently not large enough to pose a “material risk to monetary or financial stability in the UK.” [3] The Act and the guidelines also mandate that cryptocurrency dealers and banks verify traders’ identification and other information. [3] The State Bank of Vietnam issued a decree on cryptocurrency on October 30, 2017. [3]

Press Release, Central Bank of the Republic of Uzbekistan, On Cryptocurrency (Sept. 16, 2017), http://cbu.uz/uzc/press-tsentr/press-relizy/2017/09/93262/ (in Uzbek), archived at http://perma.cc/K9CS-FB9G. [3]

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18. (7) Cryptocurrency CRYPTOBUDHA.COM

19. (7) Bitcoin News & Cryptocurrency News – CoinJournal.net

20. (6) Millionaire founder of crypto exchange: I thought Bitcoin was a Ponzi scheme – BlockAsia.io

21. (5) india The Coinsters

22. (5) BitStreet Exchange – Home | Facebook

23. (5) 3 Developments in the Far East Tipped to Inspire the next Crypto-Sprint

24. (4) Highlights from CFR event ‘Legal Tender? The Regulation of Cryptocurrencies’

25. (3) BTC ETH XRP Down Today – Crypto currency Daily Roundup: June 18

26. (3) Regulation Archives | Alextones

27. (3) New Indian regulatory framework for cryptocurrencies will be presented in the first half of July

28. (3) Financial Action Task Force to Set Cryptocurrency Regulations in June | Finance Magnates

29. (2) Coss.io

30. (2) Financial Action Task Force To Introduce Binding Cryptocurrency Guidelines – BlockTribune

31. (1) Crypto – Bloomberg

32. (1) Germany Believes Cryptocurrencies Pose No Risk to Financial Stability – CoinWire

33. (1) Cryptocurrency Crypto

34. (1) Trader IvanLabrie — Trading Ideas & Charts — TradingView

35. (1) Korean Federation Of Banks (KFB) Using Blockchain To Verify Customers ID