Eternity Law International News Cryptocurrency – a currency of the future

Cryptocurrency – a currency of the future

Published:
May 9, 2018

It is difficult to meet a person today who would not have heard of such a product as a cryptocurrency. Interest in this mysterious phenomenon is growing, and in addition is giving birth to various myths, misconceptions and misunderstandings.

Discussions about the economic essence and the legal component of the Cryptocurrency are growing every day more and more, and the clarity in this matter is less and less. What is the cryptocurrency and what is the meaning of its existence?

CRYPTOCURRENCY IN UKRAINE

A similar situation with the “suspended” position of bitcoin has developed in Ukraine. The concrete bill on the ban or any tight control over the crypto-loans from the government has not yet been observed.

Therefore, for example, the National Bank of Ukraine in its resolution of 10.11.2014 defined the Crypto currency as a surrogate, which does not have a real value security. In addition, the National Bank of Ukraine recommends citizens to refrain from using cryptocurrency, because this seems very risky.

It should be noted that this decree does not establish penalties for the use of cryptocurrencies, but only recommendatory the position of the National Bank of Ukraine has changed.

National Bank of Ukraine believes that the complex legal nature of the cryptocurrency does not allow the National Bank of Ukraine to recognize the cryptocurrency either in cash, in currency, or in a payment instrument of another country, in currency value, in funds, in securities, in a money surrogate.

The tendency of the negative attitude to the government’s cryptocurrency is obvious. Since there is no concrete and distinct prohibition on the circulation of cryptocurrency in the country, its popularity is growing every day.

Mining of the cryptocurrency in Ukraine is not forbidden, it is not regulated, and therefore the activity in this direction can be considered legal, although there are many legal precedents when attempts to extract crypto-currency are linked to other, illegal activities.

CRYPTOCURRENCY IN CHINA

Another leader in cryptocurrency mining is China. The official position of Chinese banks in relation to the crypto currency is negative – any operations with this currency are prohibited. As for individuals, there are no restrictions on the use of cryptocurrency.

In addition, there is no ban on mining of the cryptocurrency. Moreover, last year the government adopted a bill that defined the use of bitcoin by the citizens of the country as quite legitimate.

As for the position of the National Bank of China, it is in solidarity with his counterparts from other countries and defines bitcoin as a surrogate. However, the attitude towards bitcoin is not denied as a commodity, and therefore, the possibility of using it in trade operations.

CRYPTOCURRENCY IN SPAIN

In Spain, the cryptocurrency is quite free. The government of Spain has recognized Bitcoin as a means of payment in 2012. This step was initiated by the tax inspectorate, which noted the positive impact of the country’s cryptocurrency on the economy.

However, along with this, the government has not taken any steps to regulate the use and turnover of the cryptocurrency. At the same time, the government of Spain plans to introduce a mining tax, which may reach 47%, and the mining itself is planned to be recognized as a legitimate economic activity.

CRYPTOCURRENCY IN THE USA

Even in a country with a stable economy like the US, such a country has a clear government attitude to the cryptocurrency.

It is defined as a virtual currency, and operations with it are equated to operations with fiat money and in many kinds of activity are subject to mandatory licensing. We can say that in the issue of regulating the turnover of the cryptocurrency, the US has advanced further than other countries.

THE DESIRE OF CRYPTOCURRENCY

The world trend in the growth of the popularity of the cryptocurrency and its partial success in terms of recognition as an economic unit in a number of countries with a strong economy may indicate that the cryptocurrency is in for a great future, and perhaps in a few decades the ubiquitous dollar and euro will replace the cryptocurrency.

In the meantime, the situation with cryptocurrencies remains ambiguous, and the various trading operations with its participation contain a high share of risk.

Although already today, several banks and payment systems allow the opening of bank accounts for activities such as the ICO.

However, it is worth noting that something new that is replacing the traditional one is always a risk, but it is precisely in these changes that the essence of evolution, to which all life on this planet is affected, including the economy, is affected. For more information, please contact our company.

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