In a world where cryptocurrencies exist outside of conventional finance, some states have decided to go even further and create laws that make you wonder: is this reality or a comedy script? Let's look at the most striking examples.
1. Bolivia: from Satoshi to a criminal
All cryptocurrencies are prohibited by law in Bolivia. Back in 2014, the government decided that Bitcoin was something like a drug, but without the pleasure. Even a post on social media about cryptocurrencies can lead to a fine or arrest. So if you are a fan of the crypt, it is better not to go there - even memes about HODL will not forgive you.
2. India: first the fine, then the prison, and then the tax
India is known for its "creative" approach to regulation. At first, the country banned all transactions with crypto, then changed its mind, imposed a 30% (!) tax on cryptocurrency income and added 1% TDS to all transactions. So, as a result, traders began to trade less than a cashier in a supermarket serves in a shift.
3. Qatar: wealth without a crypt
Qatar is a country where oil and gas will last for several centuries. But cryptocurrency? No, thank you. In 2020, cryptocurrency was officially banned here, calling it a "risk for the economy." I wonder if they saw how the price of oil fluctuates?
4. Thailand: memes are also regulated
Thailand allows cryptocurrency but bans memes about it. The government has decided that any ad or joke that "induces a purchase" can be illegal. So if you decide to create a "Buy the dip" meme, prepare your wallet - the penalties are serious.
5. China: total ban, but not completely
China is a champion of controversial laws. Cryptocurrency is officially prohibited: no mining, no trading. But at the same time, Chinese companies are among the leaders in the crypto industry. What does this mean? If you are a party member, you can mine. If you are an ordinary citizen, forget it.
6. USA: tax confusion
And although the USA is one of the largest crypto countries, it also has its own sur. Each time you exchange crypto for coffee is a tax event. That is, you sold crypto, earned money, pay tax. Calculating everything is so difficult that most crypto enthusiasts pay more in CPA than they earn in altcoins.
Why so?
Often the laws are written by people who have only seen Bitcoin in the news about "hackers" or the "black market". The result is absurd decisions that harm the economy more than cryptocurrencies themselves.
But, fortunately, there are countries that understand the potential of the crypt: Switzerland, El Salvador or even the UAE. Well, let's hope that one day crypto laws get a little smarter - at least to the level of Twitter memes.
