Blockchain Technology is Regulated Differently in Various Countries
Blockchain has developed at a very fast pace from being just a technology that interested a small group of Darknet specialists. In the present time, Google and PayPal are trying to apply blockchain network in various fields.
Right from the beginning, there have been huge contradictions between the conservatism of state system and innovativeness of blockchain. Different countries are already using blockchain technology successfully in recent times.
Let us get some insight on how this technology is regulated in different countries where blockchain is implemented to the financial infrastructure.
This country is the global centre of the cryptocurrency industry where entrepreneurs come each and every year. 4 out of the largest 6 ICO’s actually took place in this country and over 200 blockchain companies operate in Switzerland. The local authority has worked to decrease the risks that are involved with unregulated ICOs on financial supervision. But there is no consensus among Swiss banks on this particular problem. Experiments are done successfully with products of cryptocurrency along with trading services.
Poland recognized the sale and purchase of Bitcoin as an official economic activity. Crypto assets are considered as a part of the tax code of the country. The Blockchain Technology Accelerator team of Poland created national digital PLN in this year. This team is also working on a type of cryptocurrency but the government is slow in adopting the standards which will make this thing running.
A bill on regulation of digital assets has been proposed by the Ministry of Finance in Russia this year. This bill redefines virtual currency in terms of financial assets and it allows trading in only official exchanges. It also asks for compliance with different other laws using a principle which is known as “Know Your Customer”. Around the end of 2018, BITEX will begin the first official financing of trade with Cryptoruble, Ethereum and Bitcoin.
A group was assigned by the Ministry of Economy this year whose purpose was to analyze all possible regulations that will actually help to clear out all the financing of terrorism. The ‘Highest Court of Administrative’ – the French State Council, said to the authorities of this country that all kinds of digital currency sales must be divided like an inflow of capital from a movable property. This dramatically changes the order of taxation for investors in bitcoin. For crypto investors, an annual tax can be up to 45 percent without taking into account the total social contribution which is 17 percent.
In Italy, the cryptocurrency industry is growing without encountering obstacles in the government work structure. The most recent decree did not impose any kind of tax and does not presuppose any kind of regulation on exchange transactions. Acceptance of Bitcoin as payment by various enterprises is increasing. The local tax authorities said that when someone buys any digital currency, it won’t generate any kind of taxable income and that it is not subject to gaining of taxes by the capital.
These are the regulations related to blockchain network followed in countries where blockchain technology has made an impact. Several other countries are gradually opening up to this new technology and making an effort to adapt blockchain technology in their financial system.