Q3 of 2018 to Bring Crypto Friendly Regulation Developments Across the World
This Fall May Bring More Crypto-Friendly Jurisdictions To The Market
Authorities in several countries are starting to think about Bitcoin and the cryptocurrency market in 2018. Now, some of them are starting to draw more solid plans about how to regulate the crypto space. The result could bring a new club of crypto-friendly jurisdiction accepting new members during the upcoming Fall.
Officials Affirm That New Russian Crypto Law Is To Come Soon
Elina Sidorenko, the head of the interdepartmental group that is currently studying cryptocurrency risks, has recently told the Russian media that a new law should be presented in the future, as Russia does not have one. This law will draft the responsibilities, rights and duties of cryptocurrency investors and companies related to these financial assets.
A set of three crypto bills were to be approved, but the president of Russia, Vladimir Putin, ordered them to be postponed to a later date. These bills were about how digital financial assets would work, on the rights of their holders and on attracting investments using them (basically, ICOs).
Ukraine To Take Positive Stance On Cryptos
Taking an example from Switzerland, Malta and Gibraltar, it looks like Ukraine might be starting to open up for cryptocurrencies. According to comments from Timur Khromaev, the head of National Securities and Stock Market Commission of Ukraine, the country will take a positive stance on the issue.
Khromaev believes that the country needs a set of laws to develop conditions for a crypto market in the country. According to him, they are a financial instrument, though, not necessarily a means of payment. This might lead Ukraine to regulate cryptocurrencies as financial assets, which will let people invest in them with more trust and certainty.
He also stated that it is important to create mechanisms to tax and define regulatory responsibilities over cryptocurrencies. The new legislation is already being created and it will probably be adopted until the end of the year or in early 2019.
Hungary Starts To Think About Cryptos Seriously
The Hungarian media has stated that many entities in the country are currently considering how to draft a legislation for cryptocurrencies in the country. A group to assess risks and the legal, economic and security aspects of the digital money market has been created to help with the law.
At the moment, cryptocurrencies are not recognized as a means of payment in the country. While they are not illegal, they are not regulated, either. As such, they simply do not qualify as legal tender, electronic cash, financial instruments or anything of the sort.
Curiously, local crypto investors are expected to pay taxes anyway. Classified as “other income”, crypto returns have a tax of 15% and 22% in form of health insurance contributions. Legal entities have to pay 9% income tax and 2% corporate tax to the government.
Latvia To Adopt Law For Crypto Taxation
It looks like the country of Latvia is interested in taxing cryptocurrencies. According to reports, the country is considering the possibility of creating laws for this. At the moment, the new Latvian Ministry of Finance is currently preparing to draft a new law that will be ready by December.
This new law will determine how taxation over cryptos will be done and the procedures for it. It will be an important step for the national users to have more of a solid ground on what they have to pay to the government when they invest and profit from cryptos.
According to reports, the government will collect data from trading platforms and the entrance and exit of money in the crypto space will be monitored closely. Experts have also elaborated that Bitcoin and other cryptos will likely be taxed as if they were digital property.
Kazakhstan To Follow Belarus
Kazakhstan has been torn between banning cryptocurrencies and supporting their development for quite some time up until now, but it looks like the country is pending to the side of doing like Belarus did in legalizing cryptos.
The Astana International Financial Center (AIFC), created to turn the country into a financial hub, has already started financial regulations and is looking for a crypto-friendly scenario than it would be if the Central Bank had its way, as it recently called for the prohibition of all transactions involving cryptocurrencies.
If the plan goes forward, legislation for ICOs and financial transactions using cryptocurrencies will be created.
A New Age For Crypto?
Most of these countries are making considerably positive changes in their legislation. While most of them are more prone to understand cryptocurrencies as financial instruments or digital property than properly money, all kind of regulation can be very interesting for the market, as the uncertainty is something that is surely crippling the market right now.
As institutional investors keep more interested in investing in cryptos, it looks like the world is shifting to accept more this new assets, even if each country has a different regulation for them.