Does the Government Consider Cryptocurrency Assets or Money?
It appears that the governments of the world can't come to a solid conclusion as to precisely what cryptocurrencies are. Some consider them commodities, others money, while still others call them securities. Regulations need to occur for the market to mature, but the governments are going to have to conclude as to what cryptocurrencies are for that to happen.
Each country around the world, views cryptocurrencies in a different light. Many are still skeptical of them leaving them unregulated or classified, instead of paying attention to their own Fiat currencies. People of the world are looking to the United States for answers, who has had five separate organizations attempt to classify crypto. Some, like the SEC, is calling them securities as they are a type of investment. According to the SEC many cryptocurrencies are the exact definition of what they consider a Federal Security. Mostly because the exchange they operate on and the expected high-end ROI that investors expect with each cryptocurrency.
As of now the United States and the rest of the world, cryptocurrencies are at a steady decline. Many believe it's because of the regulations that are being instilled. Other institutions like the CFTC, better known as the Commodities and Futures Trading Commission have their own opinion. As for everyone's favorite financial institution in the United States, the IRS, they're calling cryptocurrency a taxable property.
As if that's not enough, the United States already has the Office of Foreign Assets Control and the US Treasury Department. Both of which view cryptocurrency in the same way they make foreign Fiat money. The different vantage points of cryptocurrency have clouded the entire industry. It does look, however, that the above agencies may be concluding. An example is the CFTC and SEC potentially coming to an agreement on how to set regulations in place.
But still, talks are nothing without action – before we see any real change, an actual event will have to occur. Cryptocurrency like Bitcoin and Ethereum still aren't considered the legal tender, even though countless organizations use them or accept them for payment.
As far as Europe, Asia and South America, things are considerably different. Mexico, for example, is pushing to make cryptocurrency a commodity whereas Venezuela is seeking to make all cryptocurrency legal. Both are likely due to corrupt control the governments deem essential. In other countries even further south like Argentina and Colombia, cryptocurrencies are not legal tender and likely won't be anytime soon, especially considering places like Ecuador where making payments with crypto is illegal. From all appearances, it looks as though any country with a weak economy or firm government control on money, is where cryptocurrency is usually found to be unlawful.
If we go to another region of the globe, specifically Europe – many countries see cryptocurrency as private money – this is most true in Germany, one of the economic leaders of the world. The United Kingdom, for the most part, has left cryptocurrency like Bitcoin alone. The rest of Europe like France, Denmark and Italy don't see eye to eye on cryptocurrency, instead of refusing to call it real money.
Still in Southeast Asia now, cryptocurrency has been simplified – instead it is simply called a way to purchase goods and services online – nothing too threatening by any means. The governments in the region have taken a hard stance on cryptocurrency at other times, however, like China, who entirely banned all ICOs in the country.
Depending on where you go in the world, you'll find different viewpoints on cryptocurrency. Even countries located next to each other, can have opinions differing so much they are on both ends of the scale. Maybe the different perspectives on cryptocurrency have kept the industry in balance. However, it's likely before cryptocurrency can ever go mainstream that there will have to be some type of agreements as to what they are classified as.