Albania |
3. On the fence |
- Cryptocurrencies are legal
- They are unregulated
- The Bank of Albania has advised caution, while regulation is being developed
|
Algeria |
1. Banned |
- Cryptocurrencies are illegal
- Using cryptocurrency will result in punishment
|
Antigua and Barbuda |
5. Global leader |
- Cryptocurrencies are legal
- They are unregulated
- Fund raising projects are permitted to conduct ICOs
- Member of the ECCB pilot, which will test cryptocurrencies alongside national fiat
|
Argentina |
3. On the fence |
- Cryptocurrencies are increasingly used but are not classed as legal tender
- They are unregulated
|
Armenia |
3. On the fence |
- Cryptocurrencies are legal
- They are unregulated
- The government is waiting to see how other states regulate cryptocurrencies
|
Australia |
5. Global leader |
- Cryptocurrencies are legal
- They are subject to Capital Gains Tax
- Digital currency exchanges must register with AUSTRAC and meet AML/CTF compliance and reporting obligations
|
Austria |
4. Improving |
- Cryptocurrencies are legal
- Tighter regulations were proposed mid-2018
- EU member
|
Azerbaijan |
3. On the fence |
- Cryptocurrencies are legal
- The central bank has advised caution when using cryptocurrencies
- Regulations are being drafted
|
Bahamas |
5. Global leader |
- Cryptocurrencies are legal
- They are regulated
- Regulations depend on whether the given cryptocurrency is a security, currency or commodity
- They are actively promoting the blockchain industry
|
Bahrain |
1. Banned |
- Cryptocurrencies are illegal
- However, Bahrani citizens are allowed to invest in cryptocurrnecies outside of Bahrain
|
Bangladesh |
1. Banned |
- Cryptocurrency transactions are illegal
- Transacting with digital currency is punishable by up to 12 years imprisonment
|
Barbados |
3. On the fence |
- Cryptocurrencies are legal
- Positive attitudes expressed by the Central Bank of Barbados, but no actions made
|
Belarus |
5. Global leader |
- Cryptocurrencies are legal
- They are regulated
- Income generated from mining and operations in cryptocurrencies is exempt from tax until 20123
|
Belgium |
3. On the fence |
- Cryptocurrencies are legal
- The Belgian government is waiting for guidance from the EU
- The government has warned investors about the risk of crypto fraud and the lack of regulatory oversight
- There is a special economic area, the High Technologies Park which confers special benefit's on cryptocurrency businesses
|
Belize |
3. On the fence |
- Cryptocurrencies are legal
- They are unregulated
|
Bolivia |
1. Banned |
- The Bolivian government has labelled bitcoin a “pyramid scheme”
|
Brazil |
2. Hostile |
- Cryptocurrencies are legal
- Exchanges are unregulated
- Cryptocurrencies are not classified as financial assets and cannot be acquired by investment funds
|
Brunei |
3. On the fence |
- Cryptocurrencies are legal
- They are unregulated
|
Bulgaria |
4. Improving |
- Cryptocurrencies are legal
- Cryptocurrencies are treated as financial assets, and income from selling them is taxed accordingly
- EU member
|
Cambodia |
3. On the fence |
- Cryptocurrencies are not illegal
- The central bank has asked banks not to permit cryptocurrency transactions
|
Canada |
5. Global leader |
- Cryptocurrencies and digital exchanges are legal
- Cryptocurrencies are subject to the Income Tax Act
- Entities dealing in digital currencies are regulated under AML/CTF laws
|
Chile |
5. Global leader |
- Cryptocurrencies are legal
- They are unregulated
|
China |
1. Banned |
- In February 2018, the Chinese government announced it would block access to all domestic and foreign cryptocurrency exchanges
- The Chinese government has banned ICOs
- Cryptocurrencies are not recognised as legal tender
|
Colombia |
3. On the fence |
- The Colombian government has previously announced that it’s neither outlawing nor accepting cryptocurrencies
|
Costa Rica |
2. Hostile |
- Cryptocurrencies are legal
- They are not legal tender and not supported by the central bank or state
- AML/CTF laws apply
|
Croatia |
3. On the fence |
- EU member
- The Croatian National Bank has concluded that bitcoin is not illegal, but hasn’t gone much beyond that
|
Cyprus |
3. On the fence |
- EU member
- While it doesn’t consider cryptocurrencies illegal, the Central Bank of Cyprus has warned about the risks of using them
|
Czech Republic |
2. Hostile |
- The Czech government has moved to clamp down on illegal bitcoin use, while moving to regulate it as a currency, including taxing its transactions
- Virtual currency exchanges must identify customers
- EU member
|
Denmark |
5. Global leader |
- Cryptocurrencies can be used but are not classified as legal tender
- -bitcoin purchased as an investment is tax deductible, with profits subject to tax
- The Danish government is taking a hands-off approach to regulation, although several government bodies are outspoken against cryptocurrencies
- EU member
|
Dominican Republic |
2. Hostile |
- Cryptocurrencies are legal
- They are not legal tender and not regulated
|
Ecuador |
1. Banned |
- Bitcoin is not a legal currency and is not authorised for use as a means of payment for goods and services in Ecuador
- However, the purchase and sale of cryptocurrencies through the Internet is not prohibited
|
Egypt |
1. Banned |
- Cryptocurrencies are illegal
- Bitcoin has been declared haram (prohibited under Islamic law)
|
El Salvador |
2. Hostile |
- Cryptocurrencies are legal
- However, they are not legal tender
- ICOs are prohibited
- There is no current regulatory framework which can be applied to cryptocurrencies
|
Estonia |
5. Global leader |
- The exchange of cryptocurrency is a lawful business activity regulated by the Anti-Money Laundering Act and Terrorism Finance Act
- Cryptocurrency exchanges must be authorised by the Financial Intelligence Unit
- Digital assets are classified as property for tax reasons
- EU member
|
Finland |
5. Global leader |
- EU member
- The Finnish regulatory body has declared that bitcoin is generally an asset, subject to VAT and capital gains tax, but is slightly different in that capital losses won’t be deductible.
|
France |
4. Improving |
- France is pushing for co-ordinated regulations on a European and international level
- Digital currency exchanges must register with the Autorité des Marchés Financiers (AMF)
- Profits from the sale of cryptocurrencies are taxable
- EU member
|
Georgia |
3. On the fence |
- Cryptocurrency is legal
- They are not legal tender
|
Germany |
4. Improving |
- Cryptocurrency is a legal means of payment
- Germany is pushing for co-ordinated regulations on a European and international level
- Digital currency exchanges must register with the Financial Supervisory Authority (BaFin) and follow AML regulations
- There is no tax on cryptocurrencies when used as a means of payment
|
Ghana |
2. Hostile |
- Cryptocurrencies are legal
- They are not legal tender
- The central bank has advised cryptocurrencies are not licensed and discourage their use
|
Greece |
3. On the fence |
- The Greek government has not issued any specific cryptocurrency legislation
- However, the Bank of Greece has joined other European regulators to warn of the risks of cryptocurrencies
|
Grenada |
5. Global leader |
- Cryptocurrencies are legal
- Member of the ECCB pilot, which will test cryptocurrencies alongside national fiat
|
Guatemala |
2. Hostile |
- Cryptocurrencies are legal
- They are not legal tender
- The government strongly advises against the use of cryptocurrencies
|
Honduras |
3. On the fence |
- Cryptocurrencies are legal
- They are not legal tender
- They are not regulated
|
Hong Kong |
5. Global leader |
- ryptocurrencies are legal, and many blockchain companies have moved to Hong Kong
- Regulators in Hong Kong are engaging crypto companies to help promote innovation
- Regulators are continuing to monitor cryptocurrency, while actively embracing distributed ledger technology
- Proposed regulation may require cryptocurrency exchanges to operate in a regulatory sandbox
- Retail speculators may have access to cryptocurrency exchanges restricted
|
Hungary |
3. On the fence |
- There is no official regulation
- Cryptocurrencies do not qualify as legal tender or cash equivalent
- Tax applies to cryptocurrency mining and trading
- EU member
|
Iceland |
1. Banned |
- It is legal for Icelandic citizens to own and mine cryptocurrency
- However, in the words of the Icelandic Central Bank: ”It is prohibited to engage in foreign exchange trading with the electronic currency bitcoin, according to the Icelandic Foreign Exchange Act”
|
India |
2. Hostile |
- Cryptocurrencies are not accepted as a means of payment
- Digital currency exchanges are technically legal but face increasingly tight restrictions
- In April 2018, the Reserve Bank of India banned banks and regulated financial institutions from providing services to any person or business that deals with cryptocurrencies
|
Indonesia |
3. On the fence |
- Cryptocurrencies are treated as commodities
- Crypto futures trading was approved in June 2018
- Currently it’s lightly regulated, but regulations surrounding cryptocurrency exchanges and taxation are expected soon
|
Iran |
2. Hostile |
- In April 2018, the Central Bank of Iran banned all Iranian financial institutions from handling cryptocurrencies
- The clampdown is designed to tackle money laundering
- Despite the ban, Iran is reportedly experimenting with a state-run cryptocurrency
|
Iraq |
1. Banned |
- Cryptocurrencies are illegal
- Traders who use cryptocurrency will be punished according to AML laws
|
Ireland |
1. Banned |
- Currently, no laws specifically regulate cryptocurrencies
- Existing tax rules apply to cryptocurrency transactions
- EU member
|
Israel |
4. Improving |
- Virtual currencies are considered to be financial assets
- Capital gains tax applies to virtual currency trades
- New regulations are due to be introduced in Q4 2018 and are expected to feature increased reporting requirements for crypto exchanges
|
Italy |
4. Improving |
- New regulations classifying the use of cryptocurrencies and concerning service providers related to digital currencies are being developed
- EU member
|
Jamaica |
3. On the fence |
- Cryptocurrencies are legal
- They are not legal tender
- The central bank has advised caution
|
Japan |
5. Global leader |
- Cryptocurrency is accepted as a legal form of payment
- Digital currency exchanges are legal if registered with the Japanese Financial Services Agency
|
Jordan |
2. Hostile |
- Cryptocurrencies are legal
- Banks and financial institutions are prohibited from dealing in cryptocurrencies
- Citizens are warned against using cryptocurrencies
|
Kazakhstan |
5. Global leader |
- Kazakhstan aims to become a fintech and cryptocurrency hub
- The nation’s president has called for global regulation of cryptocurrencies under UN oversight
|
Kenya |
3. On the fence |
- The Central Bank of Kenya has warned that cryptocurrency is risky and is not legal tender
- Cryptocurrencies are not illegal
- It’s currently unregulated, but the nation’s treasury secretary had been tasked with drafting cryptocurrency regulations in July 2018
|
Korea, South |
4. Improving |
- Cryptocurrencies are legal but are not legal tender
- Anonymous trading is prohibited
- Exchanges must register with the Financial Supervisory Service
- Cryptocurrencies quickly became extremely popular and widely available in South Korea. Regulators appear to be torn between wanting to clamp down tightly and recognising that cryptocurrency is now too ubiquitous to effectively do so
|
Kosovo |
3. On the fence |
- Cryptocurrencies are legal
- They are not legal tender
- The central bank has issued a series of stern warnings against the use of cryptocurrencies
- The central bank has established a working group to address virtual currencies
|
Kuwait |
2. Hostile |
- Cryptocurrencies are legal
- They are not legal tender
- Banks and financial organisations are prohibited from trading cryptocurrencies
- Cryptocurrencies are not allowed to be accepted as a form of payment
|
Latvia |
4. Improving |
- Cryptocurrency is accepted as an exchange instrument but it’s not legal tender
- Virtual currency exchanges must meet monitoring requirements
- EU member
|
Lebanon |
2. Hostile |
- The Lebanese central bank has prohibited the use of cryptocurrencies by financial institutions, but has not issued any guidance for private citizens
|
Lithuania |
4. Improving |
- Having previously adopted a “wait and see” approach, the Lithuanian government introduced new cryptocurrency guidelines in June 2018
- These provide guidelines for ICOs and the tax treatment of cryptocurrencies as well as details of plans for amendments to AML/CTF rules
- EU member
|
Luxembourg |
3. On the fence |
- Luxembourg was one of the first countries to officially declare cryptocurrencies to be currencies in 2014 and was the first country to grant a payment institution licence to a bitcoin exchange in April 2016
- However, the Financial Sector Monitoring Commission has warned about the risks of investing in cryptocurrencies
- There’s no legal framework that specifically deals with cryptocurrencies
- EU member
|
Macau |
2. Hostile |
- Cryptocurrencies are legal
- The central bank prohibits ICOs and any involvement with them. This approach is similar to China's
- Citizens are stronly advised against participating in cryptocurrencies
|
Macedonia |
1. Banned |
- Cryptocurrencies are illegal due to existing laws which prevent overseas investments
|
Malaysia |
4. Improving |
- Cryptocurrency trading is allowed but cryptocurrencies aren’t recognised as legal tender
- New AML/CTF guidelines were introduced for digital currency exchanges in February 2018
|
Malta |
5. Global leader |
- Cryptocurrencies are legal in Malta
- Regulatory development is ongoing, but friendly towards the industry
- Malta wants to align itself as the "Blockchain Island"
- Several established exchanges and businesses have moved from abraod to Malta, due to the friendly regulatory environment
|
Mexico |
4. Improving |
- A cryptocurrency regulation bill was passed in March 2018
- Cryptocurrencies are considered commodities
- Digital currency exchanges are under the oversight of the central bank
- To combat money laundering, from September 2019, relevant transactions exceeding a certain amount must be reported to the government
|
Mongolia |
3. On the fence |
- Cryptocurrencies are legal
- They are not legal tender
- They are not regulated
- The central bank has advised against their use
|
Morocco |
1. Banned |
- The use of cryptocurrencies in Morocco can lead to penalties and fines
|
Mozambique |
3. On the fence |
- Cryptocurrencies are legal
- They are not regulated
- The central bank advises caution
|
Namibia |
1. Banned |
- Namibia’s central bank says cryptocurrency purchases are illegal
- Cryptocurrency exchanges are not allowed to operate
|
Nepal |
1. Banned |
- Cryptocurrencies are illegal
- Exchange operators have been arrested in the past
|
Netherlands |
4. Improving |
- Cryptocurrency is considered an item of barter, meaning it can be relatively freely exchanged and falls outside most existing regulations
- There are no plans to ban cryptocurrency
- AML regulations for exchanges are expected to be implemented by the end of 2019
- EU member
|
New Zealand |
3. On the fence |
- Cryptocurrency is treated as property for tax purposes
- New Zealand is working on implementing cryptocurrency regulations, but to date it has only recommended caution for its citizens that plan on using it
|
Nigeria |
2. Hostile |
- In January 2017, Nigeria’s central bank outlawed bitcoin and digital currencies, but also openly pointed out that it can’t actually regulate cryptocurrency
- Banks and financial institutions are prohibited from using, holding or transacting with cryptocurrencies
- A legal framework for blockchain regulation is being considered
|
Norway |
4. Improving |
- Cryptocurrency is largely unregulated
- Cryptocurrency is classed as an asset and subject to capital gains tax
|
Oman |
3. On the fence |
- Cryptocurrencies are legal
- They are not regulated
- The central bank advises caution and personable responsibility
|
Pakistan |
1. Banned |
- In April 2018, the State Bank of Pakistan banned investment in and trading of cryptocurrencies
|
Philippines |
5. Global leader |
- The country is moving to recognise cryptocurrency as a legitimate payment method and implement a thorough regulatory framework for cryptocurrency companies
- The Philippines’ SEC released draft rules for ICOs in August 2018
|
Poland |
4. Improving |
- The trading and mining of virtual currencies is recognised as an official economic activity, but cryptocurrencies are not legal tender
- Selling or purchasing cryptocurrency is considered a transfer of property rights
- EU member
|
Portugal |
3. On the fence |
- A legislative framework for cryptocurrencies is being discussed
- EU member
|
Qatar |
1. Banned |
- Cryptocurrencies are illegal at an insitutional level
|
Romania |
4. Improving |
- Cryptocurrencies are legal
- Income from cryptocurrencies are taxable
- The central ban discourages involvement by local insitituions due to risk
|
Russia |
4. Improving |
- Cryptocurrency regulation is being discussed by legislators as of July 2018
- Mining and circulation of cryptocurrencies is expected to be regulated under existing provisions of the Russian Tax Code
|
Saudi Arabia |
1. Banned |
- Cryptocurrencies are illegal
- Interestingly, the Kingdom has plans for a local digital currency to be traded between banks
|
Singapore |
4. Improving |
- Cryptocurrency trading and exchanges are legal
- Proposed changes to the existing regulatory framework are reportedly being discussed as of March 2018
|
Slovenia |
4. Improving |
- They are largely unregulated
- Slovenia has issued guidelines stating that bitcoin can be classified as either a financial asset or a currency depending on how it’s used in a given situation, and that it will be taxed and regulated accordingly on a case-by-case basis
- Crypto exchanges and brokers are classified as financial institutions for anti-money laundering purposes
- EU member
|
South Africa |
4. Improving |
- Cryptocurrencies are legal but are not classified as legal tender
- South African citizens must declare income derived from cryptocurrency as part of their capital gains statement
- No regulation regarding exchanges
|
Spain |
5. Global leader |
- Currently, there is no regulatory framework for cryptocurrencies but draft legislation was introduced in May 2018
- Profits from cryptocurrency transactions are taxable under the Law on Income Tax of Individuals
- EU member
|
Swaziland |
3. On the fence |
- Cryptocurrencies are legal
- It is not legal tender
- It is not regulated
- The central bank advises caution
|
Sweden |
5. Global leader |
- There is no specific regulation dealing with cryptocurrencies
- Sweden’s central bank is actively pushing for more widespread adoption of digital currencies.
- EU member
|
Switzerland |
5. Global leader |
- Cryptocurrencies are legal and are classified as assets
- Exchanges are legal but must obtain a licence from the Swiss Financial Market Supervisory Authority (FINMA)
- FINMA has also introduced guidelines to help local startups launch ICOs
|
Taiwan |
4. Improving |
- There are no current regulations specifically for cryptocurrencies
- AML rules are expected to be introduced by November 2018
|
Tajikistan |
2. Hostile |
- Cryptocurrencies are not illegal
- They are not legal tender
- The central bank warns against their use
|
Thailand |
4. Improving |
- Cryptocurrencies are legal
- They are regulated and subject to Capital Gains Tax
- Financial institutions are currently asked to refrain from involving themselves with cryptocurrencies
- Current laws have been implemented as a stop-gap to protect consumers, while regulations are still being developed
|
Turkey |
4. Improving |
- Cryptocurrencies are legal
- They are not regulated
- After lawmakers originally deemed bitcoin incompatible with Islam, government policy is starting to shift
- The government has expressed interest in developing a national cryptocurrency
|
Uganda |
4. Improving |
- Cryptocurrencies are legal
- They are not regulated
- In cooperation with a local UN body, regulations are being developed
|
Ukraine |
4. Improving |
- There is no regulatory framework for cryptocurrencies
- A working group on cryptocurrency regulation was established in January 2018
|
United Arab Emirates |
4. Improving |
- The regulatory landscape is confusing and ambiguous, although making various steps towards regulation
- The financial regulator of the Abu Dhabi Global Market (ADGM) introduced its own crypto regulatory framework in June 2018
- Dubai is set to launch a digital currency in 2018, emcash, which is pegged to the dirham and backed by the state
|
United Kingdom |
5. Global leader |
- Cryptocurrencies are legal but are not legal tender
- There are registration requirements for exchanges
- There are no laws specifically relating to cryptocurrencies
- Guidelines on cryptocurrency policy are expected to be released in September 2018
|
United States |
5. Global leader |
- Cryptocurrencies are legal but are not legal tender
- Regulation of exchanges varies by state
- On the whole, the US is fairly crypto-friendly, but tax laws and other fine details vary widely from state to state
|
Uzbekistan |
5. Global leader |
- Cryptocurrencies are legal
- A presidential decree on July 3, 2018 enacted mandates to encourage the development of blockchain and cryptocurrency industries in the nation
- Another decree on September 2, 2018 established a state blockchain development fund, legalised mining, and made trading legal and tax free
|
Venezuela |
2. Hostile |
- Against the backdrop of a failed fiat currency, cryptocurrency is very widely used in Venezuela
- Crackdowns are common, and bitcoin users can be arrested
- Despite this, the Venezuelan government has introduced its own cryptocurrency, the Petro
|