First, let’s compare several countries, with Bitcoin as a representative example of a legal country. We will introduce Japan, Singapore and the Philippines as typical examples.
Bitcoin illegal countries
India, Vietnam and China are typical examples of Asian countries where Bitcoin is illegal (or strongly restricted). As for China, there are particularly large influences and the special standing position.
India does not have a legal view of virtual currencies, and there are noticeable moves to tighten regulations. Although it is a country with strong monetary policy, such as abolishing high-value banknotes and effectively blocking deposits, it has a strong direction to tighten regulations on Bitcoin. Considerable restrictions are being discussed, such as the total ban on virtual currencies and the suspension of bank services for companies and individuals engaged in virtual currency transactions.
Other completely illegal countries in Asia include Afghanistan, Bangladesh and Saudi Arabia.
The best blockchain investment in the world
For those who entered virtual currency investment in 2017 from the first year of cryptocurrency and lost or had an unrealized loss due to the crash in 2018, the word “ China ” is never so impressive when it comes to cryptocurrency related, I do not think it is a word.
The following are some of the major regulations enforced by China.
- Prohibition of ICO
- Prohibition of virtual currency exchange operation
- Prohibition of virtual currency exchange through the exchange
- Regulation of mining
Although the possession of virtual currency itself is not illegal, the strictness of regulation on virtual currency is unprecedented in the world.
The cryptocurrency related regulations have been strengthened, and the overall market price of cryptocurrencies has plummeted each time. China is a country that is hostile to virtual currencies.
Tax summary in virtual currency trading
You understand that the handling of virtual currency is completely different depending on the country. It is not just that cryptocurrencies can be traded in a legal country, and even in legal countries, the tax rate on that transaction will change greatly, so let’s compare again. Next, the most obvious option is to buy those bitcoins by visiting: bitcoin trader login.
First of all, in Japan, the tax of virtual currencies has been completely tax-free because the legal treatment of profits up to 2016 has not been decided at all, but from 2017 onwards, tax will be levied on profit determination. I am.
However, regarding the position of virtual currency, the handling has not been decided yet, and it is treated as “miscellaneous income”. If the profit of the stock or FX is fixed, it is fixed at 20%, but in the case of virtual currency, the maximum tax rate will be 55% depending on the amount of the fixed profit. You must be careful as the tax rate will be considerably high if you exceed a certain amount.
This is also the amount of money set for the sake of convenience, so it is expected to improve as the law is further developed in the future.
In Singapore, long-term cryptocurrencies are treated as “capital gain” and are not taxed. For long-term holdings of large amounts of crypto, Singapore proves to be a fairly attractive option.
In the case of the Philippines as well, the profit settlement of virtual currency is treated as “income tax” and is a progressive tax. There is no particular difference due to the span of short-term and long-term transactions. The highest tax rate is 32%, which is not the same level as Singapore, but it is possible to save a lot of tax compared to the case where profit is fixed in Japan.
Considering the merits of the Philippines itself due to the development of virtual currency, it seems to be an attractive choice for investing in virtual currency.
No one can predict exactly how virtual currency will develop or become obsolete when it finally begins to be recognized by the world.
It is not surprising that there are countries that regulate or ban virtual currencies because there are elements that can shake the hegemony of the country, but in reality, there are not many countries that are strongly regulated or explicitly banned.