The legal status of cryptocurrencies varies considerably from country to country. In a number of states, any operations with cryptocurrencies are officially not allowed. They are usually treated as a commodity or investment asset and are subject to relevant legislation for tax purposes. For example, in Germany, Bitcoin is recognized as a currency of account, while it is a legal tender with a tax on purchases in Japan. There is currently no legal framework in the world that sets the benchmark rules governing cryptocurrency ICOs. Therefore, there are no legal protection mechanisms for both investors and persons issuing cryptocurrency tokens.
Can You Buy and Sell BTC?
There have already been some attempts to include crypto investment in the legal field and give cryptocurrencies an official status. These were aimed at creating the conditions for regulating a new financing instrument. So, in Switzerland at the end of 2016, it was allowed to attract up to 1 million Swiss francs within the ICO without reporting obligations to the securities market regulator.
Singapore is in the process of developing its own legislative rules of market regulation. At the same time, the myth that Singapore is a “paradise” for ICOs is no longer confirmed after the statement about the risks of ICOs for investors from the MAS side. Singapore, like China, for a long time did not pay attention to what was happening until it affected its citizens and the requirements of the Financial Action Task Force (FATF).
Interestingly, Japan was the first country to equate digital money with real money. The state government has legalized crypto-exchanges by developing rules for their activities. As a result, it has created a systemic standard for procedures like ICOs.
Some other countries that have recognized the existence of Bitcoin but lack legal regulation of the crypto market are as follows:
- United Kingdom;
- Italy (individuals);
- China (individuals);
- South Africa;
- And some other states.
Of course, the absence of legal regulation provides freedom to individual traders, brokers, and online trading platforms. Nevertheless, attracting serious players will require certain legislative and legal guarantees.
Invest in Cryptocurrencies Legally
The law allows both individuals and legal entities to invest in digital assets. The process of buying a cryptocurrency is significantly different from buying fiat money. You will hardly buy BTC or any digital coins in a regular exchanger. First, you need to create a wallet where you will store electronic money.
If you are going to buy a small amount of BTC, then it is more convenient to use the wallets that belong to the exchanges. Such wallets are created automatically when you register an account on the exchange. There are also individual cryptocurrency wallets and mobile wallets. You need to download and install them. So, if you decide to invest in cryptocurrency, then you need to find an exchange and online crypto wallet that will work best for you.