This report surveys forty foreign jurisdictions bitcoin mining news sa the European Union, reporting on any regulations or statements from central banks or government offices on the handling of bitcoins as well as any significant use of bitcoins in business transactions. Of those countries surveyed, only a very few, notably China and Brazil, have specific regulations applicable to bitcoin use. There is widespread concern about the Bitcoin system’s possible impact on national currencies, its potential for criminal misuse, and the implications of its use for taxation. Overall, the findings of this report reveal that the debate over how to deal with this new virtual currency is still in its infancy.
Updates and additional countries have been added below. There are no official statements on the Alderney government’s website regarding its position towards the bitcoin, and it appears to be unregulated on the island. Bitcoins are not legal currency strictly speaking, since they are not issued by the government monetary authority and are not legal tender. He said that there was nothing to stop people holding or transacting in other currencies in Australia, including the bitcoin. Draft Ruling, and four draft taxation determinations on the taxation treatment of Bitcoin and other virtual currencies. ATO’s view is that Bitcoin is neither money nor a foreign currency. According to the guidance paper and draft rulings, Bitcoin transactions will be treated “like barter transactions with similar taxation consequences.
The Belgian Finance Minister, in response to a question by a Belgian senator, stated in July 2013 that while the Bitcoin system seems to be somewhat problematic as a potential tool for money laundering and other illegal activities, such problems should not be overstated. 12,865, which created the possibility for the normalization of mobile payment systems and the creation of electronic currencies, including the bitcoin. Article 9 defines the competence of the Brazilian Central Bank, pursuant to the directives established by the CMN. 180 days of the publication of the Law and in accordance with the guidelines established by the CMN.
In an emailed statement to The Wall Street Journal in January 2014, a Canadian official from Canada’s Department of Finance stated that Canada does not consider bitcoins to be legal tender. Canadian bank notes and coins are recognized as legal tender in Canada. Canadian financial system as a whole. Nevertheless, these payment systems should be designed and operated to meet the needs of Canadians which would include convenience and ease of use, price, reliability, safety, and effective redress mechanisms. In April 2013, Canada’s Revenue Agency reportedly stated that users of bitcoins will have to pay tax on transactions in the digital currency, based on two separate tax rules that apply to barter transactions and things that are bought and sold for speculative purposes. Additional information on this topic is available.
The new law will treat virtual currencies, including Bitcoin, as “money service businesses” for the purposes of the anti-money laundering law. Chile According to news reports, there are no merchants that accept bitcoins in Chile as of yet. Buying virtual currencies in Chile is still very cumbersome. However, there is a community of information technology professionals who are promoting the use of bitcoins, and have even opened the first virtual money exchange store in the country. Interest in acquiring bitcoins is slowly growing. In 2013, a group of American Libertarians founded a self-sustaining organic farming community called Galt’s Gulch Chile in central Chile with an economy based on bitcoins. China On December 3, 2013, the central bank of China and four other central government ministries and commissions jointly issued the Notice on Precautions Against the Risks of Bitcoins.
Notice said that by nature the bitcoin is not a currency and should not be circulated and used in the market as a currency. Banks and payment institutions in China are prohibited from dealing in bitcoins. The Notice further required strengthening the oversight of Internet websites providing bitcoin registration, trading, and other services. It also warned about the risks of using the Bitcoin system for money laundering. Croatia but can be legally used. Croatia is transacting with another entity from outside of Croatia. No specific guidelines were issued and no formal statement was found on CNB’s website.
CNB commented that money is social institution, and that it’s not unusual that money is evolving as influenced by the Internet, and established that Bitcoin is at the moment not regulated or directly monitored, but that regulation will probably in the future fall under the jurisdiction of central banks. Cyprus The use of bitcoins is not regulated in Cyprus. On March 18, 2014, the Danish Central Bank issued a statement declaring that Bitcoin is not a currency. According to the statement, “Bitcoin does not have any real trading value compared to gold and silver, and thus is more similar to glass beads. On April 1 2014, the Tax Authority published a binding reply in which it declared that an invoice cannot be issued in Bitcoins, but must instead be issued in Danish Kroner or another recognized currency. Estonia In Estonia, the use of bitcoins is not regulated or otherwise controlled by the government. On December 19, 2013, the Estonian business information Web portal Dv.
Michkel Nymmel, the head of the Payment Processing Department of the Bank of Estonia, concerning the increased use of various financial schemes related to digital currencies. Nymmel said that according to Bank of Estonia estimates, the bitcoin does not create any threat to financial or price stability because of its limited virtual area of circulation. In March 2014, Estonian Tax Authority defined the official government position that Bitcoin is an alternative means of payment and income derived from Bitcoin transactions constitutes capital gain subject to taxation. In October 2012, the European Central Bank issued a report on virtual currency schemes that discusses the Bitcoin system and briefly analyzes its legal status under existing EU legislation. The report also notes that the bitcoin issue has been raised with the European Commission’s Payments Committee. EU responsible for advising EU institutions on banking, e-money regulation, and payments, issued a warning on the dangers associated with transactions, such as buying, holding, or trading virtual currencies. Finland The Finish Tax Authority, Vero Skatt, has issued instructions for the taxation of virtual currencies, including the bitcoin.
When transferred to another currency, the rules on taxation of capital gains apply. When the currency is used as a form of payment for goods and services, it is treated as a trade, and the increase in value that the currency might have gained after it was obtained is taxable. France There are no specific laws or regulations regarding the Bitcoin system in France. This report explains that the bitcoin cannot be considered a real currency or means of payment under current French laws, and criticizes it as a vehicle for speculation as well as an instrument for money laundering and other illegal activities.
A 2011 court decision that is mentioned in the Banque de France report found that a company that acted as an exchange for bitcoins should be considered a payment service provider, subject to oversight from the French Prudential Supervisory Authority. The tax treatment of bitcoins has been discussed in some statements by the Federal Ministry of Finance. Among the opinions voiced by the Ministry is a statement on the possibility of value-added tax liability for bitcoin transfers, the lack of income tax effects for the underlying transaction when bitcoins are used as a means of payment, and the lack of long-term capital gains liability for bitcoins that are held for longer than one year. Greece No specific legislation on bitcoins exists in Greece, nor has the National Bank of Greece issued any statement on bitcoins. A private company has listed a few businesses that accept bitcoins as a form of payment, however.
Government and the relevant regulators have been keeping a close watch on the use of bitcoins locally. Iceland In a written response to Iceland’s Morgunblaðið newspaper, the Central Bank of Iceland reportedly stated that engaging in foreign exchange trading with bitcoins is prohibited, based on the country’s Foreign Exchange Act, which sets forth general restrictions on foreign exchange trading and capital movements between Iceland and other countries. On March 19, 2014 the Central Bank of Iceland issued a statement explaining the legal status of digital coins in Iceland. The coins are not a recognized and protected currency, and purchasing them may violate the Icelandic Foreign Exchange Act, which specifies that Icelandic currency cannot leave the country. India There appears to be no explicit legal framework that regulates, restricts, or bans bitcoins in India. However, India’s central bank recently cautioned the public about the possible risks of cybersecurity attacks and money laundering related to the use of this virtual currency.