Is Crypto Legal in Your Country?
Crypto regulations and laws vary from country to country. Is crypto legal where you live? Find out below.
IS CRYPTO LEGAL IN YOUR COUNTRY?
Crypto Regulations By Country
Crypto regulations are different in every country. While some countries use cryptocurrencies (like Bitcoin) as legal tender, others have banned crypto entirely. Do you know if crypto is legal in your country? Find out below!
Is crypto legal in Albania?
Yes, crypto is legal in Albania.
Albania was one of the first countries in Europe to implement crypto regulations. These regulations are intended to protect investors from fraud and other risks.
Under Albania’s crypto regulations, only licensed entities can distribute and manage crypto funds. Licenses are available through the Bank of Albania. Currently, there are no licensed entities in operation. That said, many crypto trading platforms still operate legally in Albania.
Albania will also introduce new crypto tax laws in the near future. Under these new laws, business earnings from crypto transactions and mining will be taxed as corporate income. On the other hand, all crypto gains for individuals will be taxed as capital gains.
Is crypto legal in Argentina?
It’s legal to buy, sell and trade cryptocurrency in Argentina – on crypto exchanges. In fact, Argentina was one of the earliest adopters of crypto. According to Bloomberg, the country is in the top 10 for crypto adoption.
That said, cryptocurrencies are not considered legal tender in Argentina. This is because the Central Bank does not issue them. The Central Bank of Argentina is the only authority in the country that can issue legal currency.
Unfortunately, in May 2022, the Central Bank banned financial institutions in Argentina from offering their clients access to cryptos. Before this ban, two large Argentinian banks had announced that they would allow their clients to purchase cryptocurrencies. As a result of this ban, these banks must backtrack on their plans to offer crypto to their clients.
Is crypto legal in Australia?
Crypto is legal in Australia.
Residents of Australia can legally buy, sell, trade, stake and mine crypto. Unlike many countries across the world, the Australia government is friendly towards cryptocurrencies and blockchain technology. That said, the government does not consider cryptocurrency legal “money”. The Reserve Bank of Australia is, however, researching the viability of a central bank digital currency (CBDC) which could be used as a legal tender in the near future.
Is crypto legal in Canada?
Yes, crypto is legal in Canada.
Canadians in all provinces and territories can buy, sell, trade, mine, and stake cryptocurrency. The Canadian government recognizes crypto as an investment asset. Therefore, any money that Canadians make when selling cryptocurrencies must be claimed on their annual tax return.
When it comes to tax on crypto in Canada, traders and other individuals who are involved in the crypto space in a “businesslike” manner must report the income they earn as business income. On the other hand, Canadians who are considered investors (and do not partake in businesslike crypto activities) can report their crypto income as capital gains. This means they pay tax on just half of the profits.
Keep in mind only realized income is taxed. In other words, crypto income is only taxed if the holder sells, trades, converts, gifts or spends their crypto. For those who simply buy and hold cryptocurrency, there are not tax implications in Canada.
In the same way that crypto investors and traders must claim gains on their crypto assets, they can also claim losses. Therefore, if you dispose of your crypto at a loss (e.g. sell it for less than what you bought it for), you can use this as a deduction on your annual tax return.
Two Toronto-based crypto trading platforms, Newton and Bitbuy, recently implemented an annual buy limit of $30,000 CAD on altcoins in Canada.
This is an annual net buy limit, meaning investors can only buy $30,000 total in restricted altcoins. For example, buying $10,000 SOL, $10,000 ADA, $10,000 XRP would max out your annual limit. That said, users can purchase unlimited amounts of unrestricted cryptocurrencies.
Unrestricted cryptos include:
- Bitcoin Cash
The Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA) have set these limits. Thus, these exchanges have opted to impose the limit to comply with these regulatory bodies.
These restrictions apply only to “retail investors.” On the other hand, “eligible investors” have a purchase limit of $100,000 CAD, and those who qualify as “accredited investors” have no limits at all. How each trader is categorized is determined by a “trading questionnaire.”
Buy limits affect crypto investors in the following provinces and territories:
- New Brunswick
- Nova Scotia
- Northwest Territories
- Prince Edward Island
Buy limits do not impact residents of the following provinces:
- British Columbia
Why are some provinces and territories affected by the annual buy limit while others are not? In Canada, each province and territory has its own securities body. As a result, the regulatory authorities in some provinces and territories have decided not to impose these limits.
Is crypto legal in India?
Whether or not crypto is legal in India is a bit of a grey area. It’s not illegal to buy and sell crypto in India – but it’s also not considered 100% legal either.
The government of India is still weighing its options when it comes to legalizing cryptocurrency. Therefore, the government has yet to solidify any decision as to whether crypto is legal or not. That said, crypto profits are still taxed. In India, there is a 30% tax on all capital gains made from trading cryto. In come cases, another 1% tax may also be applicable.
Is crypto legal in Saudi Arabia?
Yes, crypto is legal in Saudi Arabia.
Residents of the country can buy, sell, and spend crypto legally. However, the Saudi Arabian Monetary Agency (SAMA) has clearly stated that crypto assets are not regulated in the Kingdom and has warned against purchasing cryptocurrencies like Bitcoin. Banks and other legitimate financial authorities in Saudi Arabia cannot legally deal with crypto. Therefore, the SAMA has warned that crypto traders and investors have no financial or legal protection in the case that they lose their assets.
Although there are no protections in place for people who choose to buy unregulated cryptos, the SAMA is researching and developing a local digital currency (i.e. a CBDC). When/if issued, this CBDC would be legal tender and would afford buyers and sellers more financial protection.
Is crypto legal in the UK?
Yes, crypto is legal in the UK.
Residents of the UK can buy, sell, trade, mine, and stake cryptocurrency. Crypto derivatives, however, are banned in the United Kingdom. The government banned crypto derivatives in 2021.
Similar to Canada, the UK requires that all crypto gains and losses be reported on annual tax returns – either as income or capital gains.