Is Bitcoin Trading Legal in Nigeria
Banks are not allowed to trade Bitcoins due to concerns about financial crime and hacking. In addition, cryptocurrency is banned in the Qatar Financial Centre. [73] [74] Cryptocurrency exchanges or trading platforms were effectively banned by a regulation in September 2017, with 173 platforms closed in July 2018. [91] In February, the Central Bank of Nigeria asked banks to identify “persons and/or entities” who have transacted in crypto transactions or operated crypto exchanges and “ensure that these accounts are closed immediately.” But this ban has not eradicated Bitcoin in Nigeria. Instead, the crypto community turned to peer-to-peer transactions or sent payments directly to each other. While banks and other financial institutions in Nigeria are banned from trading cryptocurrencies, cryptocurrency has not been labeled illegal but is not regulated. Participation in cryptocurrency transactions does not constitute illegal activities, but what the user does with the cryptocurrency in the transaction determines whether it is illegal or not. No specific regulations in Nigeria have declared cryptocurrency trading illegal or criminalized. “There are many restrictions on what we can and cannot do with our forex,” says Nena Nwachukwu of the popular trading platform Paxful. Bitcoin does not have a specific legal framework in Portugal. [3]: Portugal The Finnish tax administration has issued instructions for the taxation of virtual currencies, including Bitcoin.
[3]: Finland [151] Instead of a currency or security, a Bitcoin transaction is considered a private contract equivalent to a contract for difference for tax purposes. The purchase of goods with Bitcoin or the conversion of Bitcoin into legal tender “realizes” the value and any price increase is taxable; However, losses are not tax deductible. The Bitcoin mined is considered earned income. [151] Nigeria hosts more cryptocurrency transactions than almost anywhere else in the world, reflecting a loss of confidence in more traditional forms of investment, as reported by Ijeoma Ndukwe. On August 19, 2013, the German Ministry of Finance announced that Bitcoin is now essentially a “unit of account” and can be used for tax and business purposes in the country, which means that purchases made with it must pay VAT, as in transactions in euros. It is not classified as a foreign currency or electronic money, but presents itself as “private money” that can be used in “multilateral clearing circles,” according to the ministry. [120] [121] The Bundesbank claims that Bitcoin is not a virtual currency or digital currency. It is recommended to use the term “crypto token”. [13]: 41 HOWEVER, the AMBD advised the public not to be easily attracted by investment or financial publicity and to exercise due diligence and a thorough understanding of financial products before participating. There is no law that says that owning or trading Bitcoin is illegal. [Citation needed] On December 7, 2017, Bank Indonesia, the country`s central bank, issued a regulation banning the use of cryptocurrencies, including Bitcoin, as payment instruments as of January 1, 2018. [13] On November 11, 2021, the Council of Indonesian Ulema issued a Haram fatwa against the use of cryptocurrencies as currency, including bitcoin, invoking both Islamic laws and Indonesian banking and monetary regulations.
The decision also recognizes that there is no law unconditionally prohibiting natural or legal persons from receiving bitcoins in exchange for goods or services. Taxes may be applicable to Bitcoins. An industry association called CryptoUK aims to improve industry standards around Bitcoin. They proposed a code of conduct that includes the provision of anti-money laundering and additional security measures. [168] Based on the public decision of the Georgian Ministry of Finance in 2019,[140] crypto is naturally not “sourced” in a specific geographic location, meaning it is not considered “Georgian.” This type of income would fall under the 0% capital gains tax derived from crypto trading laws. According to Paxful`s Youssef, after the Central Bank of Nigeria banned crypto-related bank transfers in February, Nigerians sent even more bank transfers that bought Bitcoin than before. Paxful is “on track” to fund 23 percent more transactions with bank transfers in Nigeria compared to last year and 36 percent more in terms of volume, Youssef said. Absolute prohibition.
[13] The Central Bank of Bolivia passed a resolution in 2014 banning Bitcoin and any other currency not regulated by a country or economic zone. [49] As of 2017 [Update], virtual currencies such as Bitcoin do not fall within the scope of the Dutch Financial Supervision Act. [3]: Netherlands In 2016, Zug added Bitcoin as a way to pay city fees, in a test and attempt to advance Zug as a region advancing future technologies. [136] The Swiss Federal Railways, the Swiss state railway company, sells Bitcoins at their ATMs. [137] According to a 2014 statement from the Central Bank of Iceland, “there is no authorization to purchase foreign currency from financial institutions in Iceland or to transfer foreign currency across borders on the basis of virtual currency transactions. CBN also acknowledged the anonymity of cryptocurrency as a problem. He said anonymity and lack of KYC make cryptocurrency vulnerable to illegal uses such as money laundering and terrorist financing. Another reason was the volatility of cryptocurrencies, which threatened the stability of other countries` financial systems.
The use of Bitcoin in Poland is currently not regulated by a legal act. [3]: Thai Bitcoin exchanges in Poland can only exchange digital currencies for Thai baht and must work with an e-commerce license from Thailand`s Department of Business Development. .
- On March 1, 2022
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