Hi people, Faiz is welcoming you here, and today our topic is "The Legality of Cryptocurrency in Different Countries Around the World". The government looks closer when more people start buying, selling, and trading cryptocurrency because it is a question of tax, and now crypto is not just a hobby for people, but it is becoming a global financial tool. Crypto taxation is different in different countries, so it is important to talk about it.
United States
We have seen that the trump government has support for crypto, but do you know that even after this support, crypto is not a currency there, but it is considered a property, and this is also not bad. The government asks for a tax on profit, and it is accountable even if it is small. So keep that in mind.
When you hold crypto for the short term and it is less than a year then here then here you have to pay tax as you pay on regular income. For the long-term holder, that is more than a year, the tax is applied, but at a lower rate. Remember, mining, staking, receiving crypto salary, or as an income are considered income too.
United Kingdom
As we have seen US treats crypto as property, similarly UK treats crypto as property. Other rules are also the same because the UK asks for the capital gains tax, which means tax on crypto profit. Salary in crypto, stake earnings, airdrop, blogging on Hive or another crypto blogging platform, and mining are treated as regular income tax.
Germany
You can be happy to see after seeing the crypto taxation in Germany, it is crypto-friendly. Congratulations if you are holding your crypto for more than one year, because you don't need to pay any tax if you do this. Regular crypto purchases are also taxable, but we can say one thing: Germany is heaven for long-term crypto holders.
India
If Germany is heaven for long-term crypto holders, then India is hell for all types of crypto users. Crypto taxation in India is harsh because the government is against crypto, and they call it gambling and private currency. The Indian government applied a 30% tax and a 1% TDS. This is no less than banning. So you can see what is happening in India.
Australia
The Australian government offers a discount of 50% if you hold crypto for more than one year. However, you have to pay capital gain tax, and here, the crypto is not treated as property, but it is an asset. Also, the regular crypto earnings fall under the regular income tax.
Final words
Crypto is evolving, and you can see the industry is growing, and the government is taking steps according to it. So here we can expect positive in the near future however, the Chinese government is not going to change because they are very strict and they will never accept decentralization. Even though they are not allowing web 2 social media. Except for China, there are many countries that are closely monitoring, and they are checking how things are evolving in crypto, and they are understanding that there is no solution other than regulating crypto. What is your opinion? I am willing to know about it because this is a crucial matter. I am looking forward to seeing your comments, and good comments will be rewarded. Please consider sharing such articles on social media because it is necessary to spread such information among the people. Have a wonderful day ahead.
"Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma — which is living with the results of other people's thinking." -Steve Jobs
