Alternate currency

Digital asset

Commodity

Barter

Money – not currency

Goods

Cryptocurrency in:

Israel—

taxed as an asset

Bulgaria—

taxed as a financial asset

Switzerland—

taxed as a foreign currency

Argentina and Spain—

subj ect to income tax

Denmark—

subj ect to income tax, and the losses are deductible

U nited K ingdom—

corporations pay corporate tax, and unincorporated

businesses pay income tax, individuals pay capital gain tax

The legal regulators worldwide, the law enforcement agencies, the tax

authorities are putting their efforts to understand the concept of crypto coins

and where exactly do they fit in the existing regulations and legal

frameworks as the cryptocurrencies become more mainstream.

A completely new paradigm has been created with the introduction of

Bitcoin, the first cryptocurrency. No singular entity controls the digital

currencies that are decentralized and self-sustaining and do not exist in any

physical shape. Among the regulators, they are always set to cause an

uproar.

On account of their ability to be used almost with complete anonymity and

their decentralized nature, a lot of concerns are being raised about

cryptocurrencies. The authorities all over the world are worried by the

appeal of cryptocurrencies to the traders of illegal goods and services,

especially their use in money laundering and tax evasion schemes.

Bitcoin and other digital currencies in Bangladesh, Bolivia, Ecuador,

K yrgyzstan, and Vietnam as of now are outlawed, and China and Russia

are on the verge of banning them. Depending on the country, the laws and