1. The document discusses the legality of cryptocurrencies in different countries and states. It outlines 11 countries/states that have recognized cryptocurrencies to varying degrees, such as Japan, the United States, Australia, and the United Kingdom. 2. It also mentions some countries like Ukraine and Russia that do not currently approve of cryptocurrencies. A few other countries like Belgium and Greece are waiting to follow European guidance on the issue. 3. The conclusion is that cryptocurrencies will likely be recognized as parallel legal tenders and eventually full currencies worldwide as more places accept them over time. Investing in cryptocurrencies now could be a smart step given their promising future.

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2. Legality
Of Crypto
Currencies…
With so much already written, explained and explored
about cryptocurrencies the world has started taking them
seriously. The exponential demand and growth of certain
altcoins have made them the first and the last choice of
investment. It has been declared by experts that this is the
“Future Gold” and an era of digital currency has begun.
Acceptance of crypto currencies has risen and that has
given birth to almost 900 such currencies across the globe.
Though there are certain states and institutions, like
financial institutions and banks, which still do not approve
them as legal tenders. In spite of that Cryptocurrencies
have traveled a long distance in getting themselves a legal
entity. Following are the states which recognize
Cryptocurrencies in various legalities-
1. Alderney
Part of the Channel Islands this state is believed to
be the first state to allow Cryptocurrency. Since then
they have supported them in such a way that it seems

3. they are the top contender for becoming the hub of
all Cryptocurrencies.
2. Japan
One of the top ten strong economies of the world
has been friendly with cryptocurrencies since June
2014. The Japanese Financial Services Agency
declared that Japan should be the first and the safest
in the world for the use of cryptocurrencies.
Japanese Authority of Digital Assets (JADA) even
formulated “Code of Conduct” format for
Cryptocurrency only platforms.

4. 3. The United States of America
States like New York have created “BitLicense” for
the use of Cryptocurrency-Bitcoin. Issued by the
“New York State Department of Financial Services
(NYSDFS)” it is used as the business license of
altcoins. With many guidelines and rules, it is
currently limited to New York and for residents of
NY.
States like Texas and the 5th most populous state
Illinois have allowed free trading of
cryptocurrencies and do not levy any tax or any
regulations under money transmission regulations.
4. Australia
With a robust economy of USD2.564 trillion, the
Australian Government has made use of
Cryptocurrency legal. The trading and mining of
Cryptocurrencies are legal and the government is

5. even formulating regulations to levy capital gains
taxes and VAT taxes on its usage.
5. United Kingdom
The UK government is another Cryptocurrency
friendly state and treats them as “Private Money” or
currency. No VAT is added on them and they are
not treated as assets. They have rather, via the HM
Treasury, asked for data on digital altcoins so as to
decide “Who”, “When” and “Where” regulations
can be implemented. This clearly shows that the UK
is playing a safe game by neither accepting it
completely nor deciding against the digital currency.

6. 6. Germany
Since 2013, The Federal Financial Supervisory
Authority in Germany has declared
cryptocurrencies as legal financial instruments and
are considered to fall under the category termed as-
Sctimt. The use/trading of Cryptocurrency is subject
to capital gains taxes. They also come under sales
tax and VAT.
Germany
7. Singapore
The Singapore government and the Monetary
Authority of Singapore have declared
cryptocurrencies as goods purchased to buy goods.

7. Therefore they are subject to specific taxes. They
even asked the exchanges and ATM providers to
Green-list them.
8. Bulgaria
Since 2014 the government has declared them as
hybrid money and also levied 10% tax when they are
used as currency.
9. Finland
The state with a population of just 5.5million has a
good number of
Bitcoin Vending
machines.
Cryptocurrency is
categorized under
financial services
and hence are
exempted from
any VAT.

8. 10. Netherlands
The act on Financial Supervision of Netherlands
does not regulate cryptocurrencies and that is why
in this Cryptocurrency friendly state there are cities
which are termed after them, like – the “Bitcoin
City”. This name is given to the city of Arnhem
which has over hundred merchants doing business
on Bitcoin. You can purchase from bicycle to gas to
dental services using Bitcoin.
11. India
Although the Indian government is still to legalize
the use of Cryptocurrencies, it is keeping an eagle’s
eye view. Off late, the news of Indian government
coming with their own Cryptocurrency by the name
of “Lakshmi” has also surfaced. All this shows
highlights that people in the country are familiar and
willing to accept cryptocurrencies, it’s just a matter
of time.

9. There are few countries like Ukraine and Russia
who do not approve cryptocurrencies but with
passing time and pressure of staying ahead in the
economic race, they also will gradually accept them.
There are others who are watchful and are waiting
for others, like Belgium and Greece. These states
are waiting and are ready to follow the European
wide guidance.
Sooner or later, Cryptocurrencies will reach a point
where they will be recognized as parallel legal
tenders and then eventually complete recognition as
Currency across the world. With such bright future
investing today n Cryptocurrency, without much
hue and cry of their legality, will be a smart and
proactive step.