DQ 1
Legal Protection
of Bitcoin in USA and Other Countries:
As
of June 2021, most industrialized nations, including the United States and its
allies Japan and the United Kingdom, have legalized Bitcoin. The legality of
bitcoin varies greatly between developing nations. While China banned the use
of bitcoin, it did not make possession of the money illegal. Since Indian banks
are not permitted to engage with bitcoin, the legal position of
cryptocurrencies in the country is unknown. In general, it's critical to
research the rules that govern bitcoin use in different nations. Many of the
limitations that apply to traditional forms of wealth also apply to bitcoin,
even if it is legal to use in a particular nation. When it comes to taxes, the
vast majority of individuals break the law. Bitcoin is often recognized as
property rather than cash for tax reasons. El Salvador, for example, will be
the first country to accept bitcoin as legal cash in June 2021. (Natalya & Abd,2021)
The
United States explained the new rules on bitcoin earlier this year. IRS Notice
2014-21, released in 2014, clarified the virtual currency tax situation. In the
IRS's terminology, "virtual money" refers to a class of
cryptocurrencies. In 2020, taxpayers will have to indicate on the first page of
their Form 1040 whether or not they used virtual currency. As a result of the
market being deregulated, there is no centralized authority responsible for
issuing new Bitcoins. Unlike traditional bank accounts in the United States, a
Bitcoin address does not need the entry of any special data like as a individual's
Social Security number (SSN). This sparked questions about the potential for
bitcoin to be misused on the black market in its early phases. Bitcoin is not recognized as legal tender in Canada
when it comes to online and brick-and-mortar transactions that accept it. Some
of Singapore's neighboring countries, such as Malaysia and Indonesia, have
adopted a stricter stance on Bitcoin trading and exchanges than Singapore has.
Using Bitcoin, digital currencies, and exchanges is legal in Australia, and the
government is actively creating regulations related to cryptocurrencies. Strict
rules govern the operation of Bitcoin exchanges, which are legal in the country.
(Prayogo et al.,2018)
References:
Natalya, D., & Abd, R. A. H. (2021). The Ecosystem of Cryptocurrency as an Object of Civil Rights in BRICS
Countries. BRICS Law Journal, 7(2).
Prayogo, G. (2018). Bitcoin, regulation and the importance of national
legal reform. Asian Journal of Law and Jurisprudence, 1(1),
1-9.
No comments:
Post a Comment