What is Bitcoin? How Bitcoin was created

What is Bitcoin? Bitcoin was first introduced as an open source algorithm invented by an anonymous programmer, or possibly as a group of programmers under the alias Satoshi Nakamoto in 2009. There are a lot of rumors surrounding identity However, the main characters in the Nakamoto rumors are denied by the community.

What is Bitcoin?

Bitcoin is a cryptocurrency, used and distributed through electronic channels.

Bitcoin is also a decentralized and peer-to-peer (P2P) system. That is, no organization or individual is in control.

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Bitcoin has only a certain amount of supply – only a maximum of 21 million Bitcoins are created in the system.

Who is the inventor of Bitcoin?

Bitcoin was first introduced as an open source algorithm invented by an anonymous programmer, or possibly as a group of programmers under the alias Satoshi Nakamoto in 2009. There are a lot of rumors surrounding real identity However, the main characters in the Nakamoto rumors have been denied by the community.

Satoshi Nakamoto used to identify himself as a 37-year-old man living in Japan. However, because English is quite standard and his software is not labeled Japanese, people still have doubts about Satoshi’s roots. Around mid-2010, Nakamoto decided to “take off his shirt”, leaving the Bitcoin masterpiece for some famous members of the community. Gavin Adressen was assigned to Satoshi as the lead developer.

It is estimated that Nakamoto owns nearly 1 million Bitcoins, or about $ 3.6 billion at market prices in September 2017.

Who controls Bitcoin?

According to Gavin Andressen, the first thing he focuses on after Nakamoto left the project is deeper decentralization. Andersen wants Bitcoin to continue to exist autonomously, even if he “catches on death”.

For many, Bitcoin’s main benefit is its independence from the political world, banking institutions, and corporations. No one can interfere with BTC transactions, impose transaction fees or take away other people’s money. Additionally, Bitcoin’s movements are extremely transparent – every transaction is stored in a distributed public ledger called the Blockchain network.

Basically, although Bitcoin is not controlled in a systematic fashion, users still have complete control over their own finances.

How does Bitcoin work?

A user can only see the amount of Bitcoin on his wallet along with the transaction results.

As for the underlying technology, the Bitcoin network also shares a public ledger called “blockchain”. This ledger contains every transaction ever made. The ledger that holds this number is placed in “blocks”.

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If anyone tries to change a single letter or number in the transaction blocks, it affects all the blocks that follow. The publicity of the ledger, errors or fraud can also be discovered and corrected by anyone.

The user’s wallet can confirm the validity of each transaction. The authenticity of each transaction is protected by a digital signature that corresponds to the sending address.

Thanks to its verification process and secure transaction platform, it can take up to a few minutes to complete a BTC transaction. The Bitcoin protocol is designed so that each block can take up to 10 minutes to mine.

See also: What is securities? Everything you need to know about the stock market

Bitcoin Characteristics

Decentralization

One of Satoshi Nakamoto’s primary goals in creating Bitcoin was to create independence from third-party control. This network is designed so that each person, every business, as well as the equipment used in mining and transaction confirmation will be the main components of the vast network. Also, even if part of the system goes down, the money will continue to circulate.

Incognito

Today, banks know almost everything about their customers: credit history, addresses, phone numbers, spending habits and so on. Bitcoin is the exact opposite, because digital wallets are not linked to any personal information. And in spite of the support of BTC’s anonymity not being tracked, some others argue that this type of transaction could be exploited by drug crime, terrorism or money laundering.

Transparency

Bitcoin’s anonymity is only relative, every BTC transaction is stored in the Blockchain. Theoretically, if your wallet address is to be used publicly, anyone should be able to find out the balance if they carefully study the blockchain ledger. However, tracing a user’s Bitcoin address is almost impossible.

Those who want to transact anonymously can use a variety of methods. There are certain types of wallets that have security features you can trust, but the simplest method is to use multiple addresses in combination with risk sharing across multiple wallets.

High speed

The Bitcoin network makes many payments almost instantly, taking only a few minutes for someone on the other side of the world to receive your money while it takes a few days for the current international interbank system. in.

No regrets

Once you have deposited Bitcoin, there is no way to get it back unless the receiver agrees to reimburse you. This can prove payment, meaning that anyone you are dealing with cannot fool you by saying that they have not received the funds.

What can I buy with Bitcoin?

Back in 2009, when Bitcoin was first introduced, we still couldn’t use it for anything. But for now, you can buy almost anything. Big players like Microsoft and Dell, for example, accept BTC payments for their wide range of digital products and content. You can buy flight tickets at AirBaltic or Air Lithuania.

Other options include booking a hotel or shopping, paying restaurant bills, bars, going on a date, buying gift cards, betting money at a casino or making a donation. There are also a bunch of online marketplaces that sell everything from banned chemicals to high-end luxury items.

Bitcoin is still a relatively complex and novel form of payment, so spending in this currency is quite limited. However, more and more businesses from small coffee shops to large industries are accepting BTC payments.

In addition, due to the constantly fluctuating rates, Bitcoin is one of the lucrative investment options. Although still unstable and still not widely recognized, the value of this dong has increased by more than 7 times compared to 3 years ago.

How to buy Bitcoin?

Bitcoin is currently traded on a variety of exchanges, but you can also buy directly from a variety of markets. You can pay by cash, by credit or debit transfer or even buy with another cryptocurrency in circulation. But first, you need a Bitcoin wallet.

There are many options, but the main types of wallets include online wallets and wallet software on the hard disk of a personal computer. Neither option is completely secure, the hard drive can still fail, and an online wallet can still be hacked. There are also a number of mobile e-wallets that are simplified, cold ones that are not affected by technical bugs or attacks.

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And of course, Bitcoin also has a mining industry. Just a few years ago anyone with a powerful computer could mine Bitcoin, but now the situation has changed. Bitcoin is increasingly popular, and profitability has led many big players to get into the mix with powerful mining equipment. That is the reason why the Bitcoin blockchain’s difficulty increases, the wasted electricity used to mine a BTC skyrockets. In addition, the amount of Bitcoin mined is steadily decreasing.

Refer: How to buy Bitcoin in Philippines

What are the benefits of Bitcoin?

Freedom

BTC is designed with a free mindset. Most important of all is the independence from third-party centralized control of the transactions. When buying something, cryptocurrencies have become as convenient as fiat money in recent years. Especially if you are buying things from some deep web markets, BTC is an ideal form of payment compared to other currencies.

High convenience

One of the characteristics of money is convenience, meaning it is easy to carry and use. Since Bitcoin is purely digital, all funds are held in one application or hardware wallet.

Cryptocurrencies give people the freedom to send and receive money just by scanning a QR code or through a few steps of accessing an online wallet. It doesn’t take much time, transaction fees aren’t exorbitant, and money goes directly from person to person without any cumbersome middlemen. All you need is an Internet connection.

Selected transaction fee

An undisputed benefit in the Bitcoin network is the freedom to choose transaction fees or possibly even nothing. Transaction fees are given to miners, only after a number of blocks are formed. Usually the sender will pay the full fee, deducting it from the receiver could be treated as an incomplete transaction.

Transaction fees are completely voluntary and are an incentive for miners to keep working. This mechanism is also the main source of income in the cryptocurrency mining industry, giving them more money than the traditional mining industry. Bitcoin mining operations will stop at some point in the future when all Bitcoin has been mined.

So, the cryptocurrency market has another trade-off: choosing between the cost or the time it takes to wait for a transaction. High transaction fees mean fast transaction times, while some users may wait to save money.

Not in PCI

PCI stands for Payment Card Industry. The products of this industry are ATMs, debit cards, credit cards, POS network and related services. It includes all the organizations that store and issue payment data cards. There are currently some strict security regulations and most major card brands participate.

While unified rules can be good for large companies, the system doesn’t take into account individual needs. When using Bitcoin, you don’t have to follow the PCI’s standards. This allows users to enter markets where credit cards are not available or the risk of fraud is very high.

As a result, users lower transaction fees, and opportunities to expand markets and reduce operating costs will open up.

Security and control

Bitcoin users can control their transactions, nobody can withdraw money from your account without getting authorization. For the payment case, no one can easily steal payment information from the business like a traditional credit card.

BTC users can also protect their money by backing up private keys. In addition, personal or identity information is also protected, from being disclosed through the transaction process.

Bitcoin Transparent and neutral

Every transaction as well as information about BTC is publicly available on the Blockchain. You can check and use them in real time. The BTC protocol is encrypted, so no human or organization interferes, controls, and dominates. This network is completely decentralized, no one is completely in control. So Bitcoin is said to be one of the most neutral and transparent technologies ever.

Bitcoin cannot be counterfeited

One of the most common ways to counterfeit in the digital world is to use the same coin twice, making both transactions fraudulent. This phenomenon is known as the “double spend” – repeat chi. To solve this problem, Bitcoin, unlike other cryptocurrencies, uses Blockchain technology and many other consensus mechanisms to build a complete protocol.

What are the disadvantages of Bitcoin

Legal question

The legal status of Bitcoin in many different countries is still really unclear. Some governments support the use and trading of BTC while many other countries ban and place BTC out of law because of the above points.

There is a lot of concern surrounding Bitcoin being used by criminal organizations. Some papers claim that Bitcoin’s popularity lies in illegal transactions. In fact, when the black market website Silk Road went down, the value of Bitcoin immediately dropped.

Recognition level

Bitcoin is recognized and completely legal in many countries, but some governments still do not have a specific legal framework for this asset class, while others have chosen to enact the ban while considering. related bills required.

Most businesses, big or small, are familiar with BTC. It is virtually impossible to ban all cryptocurrencies.

Risk of losing key

A key is a mixed digit and alphanumeric password used to access Bitcoin wallets. Losing this key means losing the wallet. However, most current wallets have a backup mechanism, and obviously users should do so before using the wallet.

Volatility

Bitcoin’s price continues to rise and fall, going through many cycles and bursts of classic price bubbles. After the peak peaks, the capitalization value of Bitcoin is blown away very quickly. The value of Bitcoin is unpredictable, the price rises rapidly and falls dramatically. This will be a huge minus point in the eyes of investors.

Continuous development

The future of Bitcoin is still unclear. Currently, governments and banks cannot control BTC, so it is virtually unregulated. However, the more the government grows, the more the government tries to put it in legal orbit. Then a Bitcoin loses its original identity and becomes a regular currency.

Is Bitcoin a “scam”?

Billionaire investor Howard Marks recently pointed out that cryptocurrencies are nothing but multi-level fraud schemes. He explained that the current successes of digital currencies have no real value but the values ​​of the intangible investor confidence.

Those who invest in a multi-level scam model will more easily make money from the spread of the middle and high school investors, rather than from the individuals who run the business. However, when talking about Bitcoin, he thinks that the core value lies in the quantity of a certain money supply. As more people get more coins, the supply becomes scarcer and that increases the value of each coin significantly. In the end, Bitcoin does not have the features of a multi-level scam model.

Is Bitcoin an economic bubble?

Robert Shiller, the Nobel laureate economist, has proposed a list of criteria to help define a typical economic bubble. The list includes: Huge increases in asset prices, public excitement, media coverage, wealth and success stories from these assets circulating in public opinion. Bitcoin has all of these signs.

So in a way, maybe Bitcoin is a bubble and it has burst before. After Mt. Gox, a Chinese exchange that handles more than 70% of global Bitcoin trading volume, the price of BTC has been steadily falling for a year and a half. It took exactly 3 years for the market to start recovering. And of course, it is difficult to predict what will continue to happen in the future.

Difference of Bitcoin from traditional currencies

Decentralization

Every currency in the world is governed by the form of power. All transactions have to go through the bank, where the fees are sometimes unreasonable and the transaction takes time between two parties.

Bitcoin, by contrast, is not controlled by either party, it is a decentralized network and is designed based on the cooperation and consensus of the participants. So, even when part of the network is turned off, the transaction is recorded.

Can’t fake

Bitcoin is designed against counterfeiting. The legitimacy of a Bitcoin will be ensured by blockchain technology, as well as many different protection mechanisms established in the protocol.

Most traditional currencies can be counterfeited. However, the controlling individuals have done little to prevent this problem completely.

Sustainability

Bitcoin does not exist in a specific physical form, meaning it cannot be destroyed. Every Bitcoin is essentially permanent, unlike paper money or coins.

“The die is cast”

If someone makes a mistake and sends money to the wrong wallet, they only have to pray. Like many other Bitcoin features, irreversibility was born to prevent fraud. Unfortunately, if it’s fiat currency then all you need to do is just pick up the phone to appeal.

Convertible

While there are a number of fiat currencies like the dollar and euro that are widely accepted globally, most other countries’ currencies can only use currencies within their geographic range. In contrast, BTC is an online currency, which means the operating environment will be global.

Taxation of Bitcoin like?

Bitcoin currently does not have an official legal status in most countries, but a few tax authorities have recognized the importance and have proposed specific bills. These bills differ depending on the conditions of each country.

For example, the US Tax Authority views Bitcoin and other digital currencies as an asset rather than a monetary recognition. Miners also fall under the tax category in the US if their mining operation is proven to be successful.

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According to the European Supreme Court, Bitcoin is a currency, not an asset. Despite the value added tax exemption, Bitcoin may still be subject to a number of other taxes. The UK tax authority considers Bitcoin a foreign currency. Bitcoin is also exempt from consumption tax in Japan and here the authorities also recognize it as a legal payment method.

Since Bitcoin is a relatively new currency, the legal frameworks governing taxation will differ significantly depending on the country.

Electronic money exchange

Exchange Currency Payment method
Coinbase USD, EUR, GBP Credit cards, bank transfers
Bittrex 190+ trading pairs Cryptocurrencies
LocalBitcoins (P2P) All currencies Cash, PayPal, bank transfer
CEX.IO USD, EUR, GBP, RUB Credit cards, bank transfers, Ethereum
Kraken USD, EUR, CAD, GBP, JPY Bank transfer, Altcoin
CoinMama EUR, USD Credit card, Ethereum
Bitfinex USD Bank Transfer, Ethereum, Dash, Monero, Zcash
Poloniex 75+ trading pairs Cryptocurrencies
Bitstamp USD, EUR Credit cards, bank transfers
Bisq (P2P) 59+ trading pairs Cryptocurrencies, bank transfers
GDAX USD, GBP, EUR Bank transfer, Ethereum, Litecoin
ShapeShift 40+ trading pairs Cryptocurrencies

Should I buy Bitcoin or not?

Bitcoin is quite famous for its unpredictable volatility. It is not uncommon for the sudden increase or decrease of this market. In mid-December 2017, BTC reached its highest point in history, surpassing $ 19,850 per BTC and then plummeting to $ 12,000 shortly and is currently trading below $ 5,000.

It is impossible to say exactly where Bitcoin’s price will go in the coming years. Maybe according to one theory, all will return to the starting line. It is also possible that the market will stabilize at the current prices, possibly a double-triple or even ten-fold. No one can predict exactly what will happen no matter how well we understand the technology or no matter how market analysis has shown it.

John McAfee used to be very confident in the bright future of Bitcoin when repeatedly tweeted that he would eat his “private part” on national television if the BTC did not reach $ 500,000 in the next three years. Warren Buffett, on the other hand, predicts that the future of Bitcoin will be “dull”.

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In the crypto community, the most popular investment strategy is known as hodling (i.e. long-term speculation). This wording comes from a December 2013 Bitcoin forum post by a group of users who may have been “drunk”. The content is “I AM HODLING”. This confusion has been responded to by the community and has become a slang word for a speculative strategy.

After all, you may have heard various sources of information, but be aware: Bitcoin is an extremely risky investment, so never invest too much for your financial means. Coin68 recommends you sincerely.

What is the Bitcoin whale?

The whale is the largest animal in the world and the Bitcoin Whale is the only major player in the Bitcoin market. These are not only individuals but also organizations such as Trusts, Investment Funds, … For example, Pantera Capital, Bitcoins Reserve, Bitcoin Investment Trust and so on.

Day organizations own hundreds of thousands of Bitcoins and often trade in huge amounts. So they often have special deals with exchanges that can move such large sums of money out of the eyes of individual investors.

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According to a recent Bloomberg report, only about 1,000 people own 40% of the market. In fact, these people have so large balances that even a few small transactions of them cause the market to “sneeze”.

There are more than 25 million people in the world who own Bitcoin, according to a Bloomberg study. Interestingly, you only need 0.153 BTC to be in the top 30 Bitcoin holders. And to get to the top 1%, you only need to own 15 BTC.

Is Bitcoin legal or not

Every fiat currency in the world is created, issued, and controlled by an administrative body – in most cases, a central bank. By law, people are only allowed to buy, sell and store money. If someone tries to make money, it is listed as illegal. Learn more Is Bitcoin legal?

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Countries that ban Bitcoin

Bolivia

In 2014, El Banco Central de Bolivia banned any currency that is not issued and regulated by the government. Bank directly mentions Bitcoin and some other cryptocurrencies.

Bolivian authorities recently banned the use of cryptocurrencies, labeled it a multi-level scam and arrested more than 60 people. In a statement emphasized that this move is needed to create deterrence to the people.

Ecuador

The Ecuadorian government has banned Bitcoin and all other cryptocurrencies, due to entanglement with the government’s new electronic monetary system project. The project is designed to be directly tied to the national currency and controlled by the government.

Vietnam

In 2014, the Central Bank of Vietnam issued a notice prohibiting circulating people from using Bitcoin in the country. This is a preventive move and then formalized by the Prime Minister.

According to reports, in August 2017, the Prime Minister of Vietnam approved plans towards recognizing Bitcoin and other digital currencies as a form of payment in 2018.

However, in October 2017, the Vietnamese government turned around and banned the use of cryptocurrencies in the country. In early 2018, anyone caught using cryptocurrencies will be fined.

Legal Bitcoin countries

Australia

Initially, Australia imposed a tax on goods and services when buying or selling cryptocurrencies. Usually, customers will be subject to this tax twice: once when they purchase cryptocurrency and again when used to buy and sell goods services.

Just recently, in a move that paved the way for potential fintech investments, the Australian government introduced a law that would double the taxation of Bitcoin and other cryptocurrencies.

Bulgaria

Bulgaria is the first European Union member to officially recognize Bitcoin as a currency instead of a precious commodity.

Canada

Bitcoin is currently classified as an intangible asset in this North American country. Cryptocurrencies will be regulated under Anti-Money Laundering (AML) and anti-terrorism finance laws. Although not yet in force, when officially implemented, the parties trading in electronic money will be considered as Money Service Enterprises.

China

In 2013, the People’s Bank of China (PBOC) banned all financial institutions from conducting Bitcoin-related transactions, prohibiting pricing, buying and selling Bitcoin. However, personal transactions are still legal in China.

The Chinese government has stopped using cryptocurrencies in the country, urging exchanges to stop withdrawing money without providing any proper instructions and documents. In September 2017, all cryptocurrency exchanges were forced to suspend trading by the end of that month in order to comply with applicable regulations.

In addition, the Chinese legislature also introduced a bill banning cryptocurrency exchanges and ICO funding. But, although the ban is quite strict, Bitcoin has not really disappeared from China. For the most part, authorities have started using the Firewall to block foreign platforms related to ICOs and cryptocurrencies.

Estonia

The Estonian Ministry of Finance has ruled out the possibility that there will be legal barriers to the use of Bitcoin and other cryptocurrencies for payments. Traders need to confirm the buyer when establishing the business relationship or if the buyer loves more than 1,000 euros worth of money in a month.

Finland

The Finnish Tax Department decided to treat Bitcoin transactions as individual contracts equivalent to contracts for tax purposes. If you buy goods with Bitcoin or convert BTC into fiat currency, any price difference may be taxed, and losses will be waived. Mined Bitcoins are also counted as income.

The Central General Department of Taxation went against the EU approach and classified all services around Bitcoin and other similar digital currencies as financial services, thus exempting from value-added tax. increase VAT.

France

In 2014, the French Ministry of Economy and Finance outlined the regulations for financial institutions and users of cryptocurrencies. Regulations require Bitcoin distributors to limit the degree of anonymity by verifying the identity of their users. The taxation of cryptocurrencies is also clarified in these regulations. A € 5,000 limit has been proposed for the tax margin to allow citizens to try out investing and growing businesses in Bitcoin before having to pay taxes.

Germany

In Germany, Bitcoin is considered personal money. This allows users to use Bitcoin without any interference from the government, while also allowing for the taxation of corporate profits using the cryptocurrency.

Iceland

According to a statement from 2014 by the Central Bank of Iceland, transactions with Bitcoin and other cryptocurrencies are prohibited.

Three years later, the Central Bank introduced a new law that allows for general exclusions against imposed bans.

Israel

In 2017, the Israel Tax Authority viewed Bitcoin as a taxable asset, rather than as a currency or a security. Under this policy, each time Bitcoin is sold, buyers pay a 25% tax. Miners and traders are considered businesses, so they pay a corporate tax plus 17% value-added tax.

Recently, Israel started taxing Bitcoin and other cryptocurrencies as property. When considered an intangible asset, individual investors will not have to pay VAT while businesses still have to bear this amount.

Japan

Japan is one of the few countries in which Bitcoin is recognized as a legitimate form of payment. In 2017, the tax on Bitcoin transactions was eliminated, and Japanese financial authorities began licensing cryptocurrency exchanges.

Jordan

Under the current policy of the Central Bank of Jordan, banks, exchanges and financial companies as well as payment service companies are prohibited from using Bitcoin and other cryptocurrencies. Both the Central Bank and the government have warned people about the use of Bitcoin, but small businesses do.

Mexico

The Mexican parliament is currently considering bills to govern the rapidly growing financial technology sector in the country, including Bitcoin and other cryptocurrencies. The legal process will clarify the rules for fintech companies, aiming to reduce costs and increase competition in the industry. These regulations also aim to ensure financial stability and prevent money laundering.

Switzerland

When it comes to accepting Bitcoin and other cryptocurrencies, Sweden is the most open place in the world. The Swedish Financial Regulatory Authority has declared coins such as Bitcoin a legitimate method of payment. In addition, the country’s tax department also decided to tax the Bitcoin mining industry based on its success.

Certain specific businesses, mainly exchanges are required to apply for a license and must comply with the regulations that apply to traditional financial services businesses, such as AML and KYC policies.

Countries do not regulate Bitcoin

Belgium

Although the Ministry of Finance argued that it was not necessary to immediately run out of Bitcoin, the government had a lot of discussion about bills aimed at increasing the government’s control over Bitcoin and other cryptocurrencies. .

Brazil

In 2014, the Central Bank of Brazil released a statement regarding cryptocurrencies, stating that Bitcoin and other cryptocurrencies would not be regulated. A few years later, the President of the Central Bank described Bitcoin as a multi-level scam model.

Hong Kong, China

The director of the Hong Kong Monetary Authority (HKMA) views Bitcoin as a digital commodity, and said HKMA will not regulate cryptocurrencies.

The Hong Kong Treasury and Financial Services Agency secretary said current laws do not directly regulate Bitcoin or any similar electronic currency, but there are still sanctions that constrain illegal activities such as fraud and money laundering.

Denmark

The Danish Financial Watchdog stated Bitcoin is not a currency and said it is not subject to any law enforcement.

India

According to the deputy governor of the Reserve Bank of India, the IRB will not support or regulate Bitcoin. Although Bitcoin is not banned in India, cryptocurrencies are not expected to be fully covered in a legal concept or barrier.

At the end of 2017, the Indian Ministry of Finance compared Bitcoin and other cryptocurrencies with the ponzi scheme and warned investors.

Indonesia

As of today, the Indonesian authorities have not outlined any specific policy to regulate or ban the use of Bitcoin.

However, the Central Bank of Indonesia issued warnings to investors about fraud as well as unpredictable risks when buying, selling and trading cryptocurrencies.

Malaysia

In 2014, the Central Bank announced it would not consider Bitcoin a legal currency nor do it intend to regulate it.

However, Bank Negara is currently forming the concept of a cryptocurrency. While the general attitude toward Bitcoin is quite positive, there is a strong belief that the Malay government will still ban cryptocurrencies.

Russia

In 2016, Bitcoin was considered “illegal” according to the Tax Service Agency in Russia.

Since then, however, the Central Bank of Russia has argued that it is impossible to list cryptocurrencies as currency, as a means of payment, and as neither a foreign currency.

Not long after, President Putin banned Bitcoin and called for a ban on all cryptocurrencies, and the deputy finance minister told reporters that cryptocurrencies are most likely outlawed. However, Russian lawmakers have completely changed their minds when there are articles that Bitcoin will still be legal and that mining will be regulated. The Ministry of Finance said it would legalize crypto trading on official exchanges.

Singapore

The Monetary Authority of Singapore (MAS) previously stated there was no policy of intervention and warned users about the risks of Bitcoin and cryptocurrencies. In a recent interview, an official MAS official said the Central Bank has not yet had any plans to regulate cryptocurrencies, and will remain open minded on this matter. He also set the momentum needed to implement the AML policy in the near future.

The Internal Taxation Authority of Singapore has issued a series of guidelines regarding the use of Bitcoin, under which BTC transactions can be viewed as barter and therefore taxed. Businesses involved in Bitcoin transactions will be taxed based on BTC sales.

Thailand

From the very beginning, the Central Bank of Thailand did not encourage people to use Bitcoin, warning investors of the dangers of using or trading BTC. However, after that, the Thai government began researching cryptocurrencies.

By law, Bitcoin exchanges in Thailand are required to have an e-commerce license issued by the Thai government and only be used by exchanges with Thai baht rates. The KYC policy will also apply.

Netherlands

Cryptocurrencies like Bitcoin are not covered by the Netherlands Financial Supervisory Act.

Ukraine

The National Bank of Ukraine recently released a statement stating that only the hryvnia is the only legal currency used in the country. The bank also said that Bitcoin’s legal status in Ukraine is still quite complicated and controversial due to the lack of an official classification in the world. Therefore, the local legal authority does not support or give any official definition.

UK

The UK government said Bitcoin is currently unregulated and traded as for the primary “personal money” purposes, including VAT. This means that there will be no value added tax when Bitcoin is traded for goods or exchanged for other currencies. However, if the goods or services are sold and paid for in Bitcoin and electronic money, the business must pay VAT.

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