The Law Library of Congress, Global Legal Research Center

(202) 707-5080 (phone) • (866) 550-0442 (fax) • law@loc.gov • http://www.law.gov

Regulation of Cryptocurrency 

Around the World

June 2018
This report is provided for reference purposes only. 

It does not constitute legal advice and does not represent the official 

opinion of the United States Government. The information provided 

reflects research undertaken as of the date of writing. 

It has not been updated.
i 

Contents

Comparative Summary ..............................................................................................................1 

The Americas ..................................................................................................................... 7

Argentina..........................................................................................................................................7 

Belize ...............................................................................................................................................8 

Bermuda ...........................................................................................................................................8 

Bolivia ..............................................................................................................................................9 

Brazil ................................................................................................................................................9 

Canada............................................................................................................................................10 

Chile ...............................................................................................................................................12 

Colombia ........................................................................................................................................12 

Costa Rica ......................................................................................................................................13 

Ecuador ..........................................................................................................................................14 

El Salvador .....................................................................................................................................14 

Guatemala ......................................................................................................................................15 

Honduras ........................................................................................................................................16 

Mexico ...........................................................................................................................................16 

Venezuela .......................................................................................................................................17 

The Caribbean ................................................................................................................. 19

I. Eastern Caribbean Central Bank ..........................................................................................19 

II. Country Surveys ....................................................................................................................20

Anguilla..........................................................................................................................................20 

Antigua and Barbuda .....................................................................................................................21 

Bahamas .........................................................................................................................................22 

Barbados ........................................................................................................................................23 

British Virgin Islands .....................................................................................................................24 

Cayman Islands ..............................................................................................................................24 

Dominica ........................................................................................................................................25 

Dominican Republic ......................................................................................................................25 

Grenada ..........................................................................................................................................25 

Jamaica ...........................................................................................................................................25 

Montserrat ......................................................................................................................................26 

Saint Kitts and Nevis .....................................................................................................................26 

Saint Lucia .....................................................................................................................................26 

Saint Vincent and the Grenadines ..................................................................................................27 

Trinidad and Tobago ......................................................................................................................27 
ii

Europe............................................................................................................................... 28

I. EU Member States...................................................................................................................28

European Union .............................................................................................................................28

Austria............................................................................................................................................30

Belgium..........................................................................................................................................31

Bulgaria..........................................................................................................................................32

Croatia............................................................................................................................................33

Cyprus............................................................................................................................................33

Czech Republic ..............................................................................................................................33

Denmark.........................................................................................................................................34

Estonia............................................................................................................................................36

Finland ...........................................................................................................................................36

France.............................................................................................................................................38

Germany.........................................................................................................................................40

Greece ............................................................................................................................................42

Hungary..........................................................................................................................................42

Ireland ............................................................................................................................................42

Italy ................................................................................................................................................44

Latvia .............................................................................................................................................45

Lithuania ........................................................................................................................................45

Luxembourg...................................................................................................................................46

Malta ..............................................................................................................................................47

Netherlands....................................................................................................................................50

Poland ............................................................................................................................................52

Portugal..........................................................................................................................................53

Romania .........................................................................................................................................53

Slovakia..........................................................................................................................................54

Slovenia..........................................................................................................................................54

Spain ..............................................................................................................................................55

Sweden...........................................................................................................................................55

United Kingdom.............................................................................................................................58

II. Non-EU Members..................................................................................................................59

Albania...........................................................................................................................................59

Armenia..........................................................................................................................................60

Azerbaijan......................................................................................................................................60

Belarus ...........................................................................................................................................60

Bosnia and Herzegovina ................................................................................................................61

Georgia...........................................................................................................................................61

Gibraltar.........................................................................................................................................62

Guernsey ........................................................................................................................................64

Iceland............................................................................................................................................65

Isle of Man .....................................................................................................................................66
iii

Jersey..............................................................................................................................................69

Kosovo ...........................................................................................................................................71

Liechtenstein..................................................................................................................................71

Macedonia......................................................................................................................................72

Moldova .........................................................................................................................................73

Montenegro....................................................................................................................................73

Norway...........................................................................................................................................74

Russia.............................................................................................................................................75

Serbia .............................................................................................................................................77

Switzerland ....................................................................................................................................77

Ukraine...........................................................................................................................................80

Middle East and North Africa........................................................................................ 82

Algeria............................................................................................................................................82

Bahrain...........................................................................................................................................82

Egypt..............................................................................................................................................82

Iran .................................................................................................................................................83

Iraq .................................................................................................................................................84

Israel...............................................................................................................................................84

Jordan.............................................................................................................................................85

Kuwait............................................................................................................................................86

Lebanon..........................................................................................................................................86

Morocco .........................................................................................................................................87

Oman..............................................................................................................................................87

Qatar...............................................................................................................................................88

Saudi Arabia...................................................................................................................................88

United Arab Emirates ....................................................................................................................88

Sub-Saharan Africa......................................................................................................... 89

Ghana .............................................................................................................................................89

Kenya .............................................................................................................................................89

Lesotho...........................................................................................................................................90

Mozambique ..................................................................................................................................91

Namibia..........................................................................................................................................91

South Africa ...................................................................................................................................92

Swaziland.......................................................................................................................................94

Uganda ...........................................................................................................................................94

Zambia ...........................................................................................................................................95

Zimbabwe ......................................................................................................................................95
iv

Central Asia...................................................................................................................... 96

Kazakhstan.....................................................................................................................................96

Uzbekistan......................................................................................................................................96

Kyrgyzstan .....................................................................................................................................96

Tajikistan........................................................................................................................................97

South Asia......................................................................................................................... 98

Bangladesh.....................................................................................................................................98

India ...............................................................................................................................................99

Nepal............................................................................................................................................101

Pakistan........................................................................................................................................102

East Asia and the Pacific................................................................................................103

Australia.......................................................................................................................................103

Brunei...........................................................................................................................................106

China............................................................................................................................................106

Cambodia .....................................................................................................................................107

Hong Kong...................................................................................................................................108

Indonesia ......................................................................................................................................109

Japan ............................................................................................................................................111

Macau...........................................................................................................................................113

Malaysia.......................................................................................................................................114

Marshall Islands...........................................................................................................................116

New Zealand ................................................................................................................................117

Philippines....................................................................................................................................119

Samoa ..........................................................................................................................................119

Singapore .....................................................................................................................................120

South Korea .................................................................................................................................121

Taiwan..........................................................................................................................................122

Thailand .......................................................................................................................................123

Vanuatu .......................................................................................................................................124

Vietnam........................................................................................................................................124

Maps

Legal Status of Cryptocurrencies.....................................................................................................4

Regulatory Framework for Cryptocurrencies..................................................................................5

Countries that Have or Are Issuing National or Regional Cryptocurrencies ..................................6
The Law Library of Congress 1 

Regulation of Cryptocurrency Around the World 

Prepared by the Staff of Global Legal Research Directorate 

Comparative Summary 

This report surveys the legal and policy landscape surrounding cryptocurrencies around the world. 

While not dissimilar in form to the 2014 Law Library of Congress report on the same subject, 

which covered forty foreign jurisdictions and the European Union, this report is significantly more 

comprehensive, covering 130 countries as well as some regional organizations that have issued 

laws or policies on the subject. This expansive growth is primarily attributable to the fact that over 

the past four years cryptocurrencies have become ubiquitous, prompting more national and 

regional authorities to grapple with their regulation. The resulting availability of a broader set of 

information regarding how various jurisdictions are handling the fast-growing cryptocurrency 

market makes it possible to identify emerging patterns, some of which are described below. The 

country surveys are also organized regionally to allow for region-specific comparisons. 

One interesting aspect of the fast-growing cryptocurrency market is the fluidity of the terms used 

to describe the different products that fall within its ambit. While the various forms of what are 

broadly known as “cryptocurrencies” are similar in that they are primarily based on the same type 

of decentralized technology known as blockchain with inherent encryption, the terminology used 

to describe them varies greatly from one jurisdiction to another. Some of the terms used by 

countries to reference cryptocurrency include: digital currency (Argentina, Thailand, and 

Australia), virtual commodity (Canada, China, Taiwan), crypto-token (Germany), payment token 

(Switzerland), cyber currency (Italy and Lebanon), electronic currency (Colombia and Lebanon), 

and virtual asset (Honduras and Mexico). 

One of the most common actions identified across the surveyed jurisdictions is government-issued 

notices about the pitfalls of investing in the cryptocurrency markets. Such warnings, mostly issued 

by central banks, are largely designed to educate the citizenry about the difference between actual 

currencies, which are issued and guaranteed by the state, and cryptocurrencies, which are not. 

Most government warnings note the added risk resulting from the high volatility associated with 

cryptocurrencies and the fact that many of the organizations that facilitate such transactions are 

unregulated. Most also note that citizens who invest in cryptocurrencies do so at their own 

personal risk and that no legal recourse is available to them in the event of loss. 

Many of the warnings issued by various countries also note the opportunities that cryptocurrencies 

create for illegal activities, such as money laundering and terrorism. Some of the countries 

surveyed go beyond simply warning the public and have expanded their laws on money laundering, 

counterterrorism, and organized crimes to include cryptocurrency markets, and require banks and 

other financial institutions that facilitate such markets to conduct all the due diligence requirements 

imposed under such laws. For instance, Australia, Canada, and the Isle of Man recently enacted 

laws to bring cryptocurrency transactions and institutions that facilitate them under the ambit of 

money laundering and counter-terrorist financing laws. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 2 

Some jurisdictions have gone even further and imposed restrictions on investments in 

cryptocurrencies, the extent of which varies from one jurisdiction to another. Some (Algeria, 

Bolivia, Morocco, Nepal, Pakistan, and Vietnam) ban any and all activities involving 

cryptocurrencies. Qatar and Bahrain have a slightly different approach in that they bar their 

citizens from engaging in any kind of activities involving cryptocurrencies locally, but allow 

citizens to do so outside their borders. There are also countries that, while not banning their 

citizens from investing in cryptocurrencies, impose indirect restrictions by barring financial 

institutions within their borders from facilitating transactions involving cryptocurrencies 

(Bangladesh, Iran, Thailand, Lithuania, Lesotho, China, and Colombia). 

A limited number of the countries surveyed regulate initial coin offerings (ICOs), which use 

cryptocurrencies as a mechanism to raise funds. Of the jurisdictions that address ICOs, some 

(mainly China, Macau, and Pakistan) ban them altogether, while most tend to focus on regulating 

them. In most of these latter instances, the regulation of ICOs and the relevant regulatory 

institutions vary depending on how an ICO is categorized. For instance, in New Zealand, 

particular obligations may apply depending on whether the token offered is categorized as a debt 

security, equity security, managed investment product, or derivative. Similarly, in the 

Netherlands, the rules applicable to a specific ICO depend on whether the token offered is 

considered a security or a unit in a collective investment, an assessment made on a case-bycase basis. 

Not all countries see the advent of blockchain technology and cryptocurrencies as a threat, albeit 

for different reasons. Some of the jurisdiction surveyed for this report, while not recognizing 

cryptocurrencies as legal tender, see a potential in the technology behind it and are developing a 

cryptocurrency-friendly regulatory regime as a means to attract investment in technology 

companies that excel in this sector. In this class are countries like Spain, Belarus, the Cayman 

Islands, and Luxemburg. 

Some jurisdictions are seeking to go even further and develop their own system of 

cryptocurrencies. This category includes a diverse list of countries, such as the Marshall Islands, 

Venezuela, the Eastern Caribbean Central Bank (ECCB) member states, and Lithuania. In 

addition, some countries that have issued warnings to the public about the pitfalls of investments 

in cryptocurrencies have also determined that the size of the cryptocurrency market is too small to 

be cause for sufficient concern to warrant regulation and/or a ban at this juncture (Belgium, South 

Africa, and the United Kingdom). 

One of the many questions that arise from allowing investments in and the use of cryptocurrencies 

is the issue of taxation. In this regard the challenge appears to be how to categorize 

cryptocurrencies and the specific activities involving them for purposes of taxation. This matters 

primarily because whether gains made from mining or selling cryptocurrencies are categorized as 

income or capital gains invariably determines the applicable tax bracket. The surveyed countries 

have categorized cryptocurrencies differently for tax purposes, as illustrated by the 

following examples: 

 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 3 

Israel → taxed as asset 

Bulgaria → taxed as financial asset 

Switzerland → taxed as foreign currency 

Argentina & Spain → subject to income tax 

Denmark → subject to income tax and losses are deductible 

United 

Kingdom: 

→ corporations pay corporate tax, unincorporated 

businesses pay income tax, individuals pay capital 

gains tax 

Mainly due to a 2015 decision of the European Court of Justice (ECJ), gains in cryptocurrency 

investments are not subject to value added tax in the European Union Member States. 

In most of the countries surveyed for this report that have or are in the process of devising taxation 

rules, the mining of cryptocurrencies is also exempt from taxation. However, in Russia mining 

that exceeds a certain energy consumption threshold is taxable. 

In a small number of jurisdictions surveyed cryptocurrencies are accepted as a means of payment. 

In the Swiss Cantons of Zug and a municipality within Ticino, cryptocurrencies are accepted as a 

means of payment even by government agencies. The Isle of Man and Mexico also permit the use 

of cryptocurrencies as a means of payment along with their national currency. Much like 

governments around the world that fund various projects by selling government bonds, the 

government of Antigua and Barbuda allows the funding of projects and charities through 

government-supported ICOs. 

The following three maps visually represent findings from the report on the legal status of 

cryptocurrencies, the regulatory framework surrounding cryptocurrencies, and countries that have 

launched their own cryptocurrencies or are planning to do so. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 

Legal Status of Cryptocurrencies Source: Created by the Law Library of Congress based on information provided in this report. 

Absolute Ban 

ISO Code 

Country Name 

DZ Algeria BO Bolivia EG Egypt IQ Iraq MA Morocco NP Nepal PK Pakistan AE United Arab 

E i

ISO Code BH BD CN CO DO ID IR KW LS LT MO OM QA SA TW 

DZ 

BO 

EG 

MA 

PK 

IQ

AE 

BH 

CO 

DO 

IR

KW 

SA QA 

OM 

IR

OM 

SA 

IQ

LS 

LT 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 

Regulatory Framework for Cryptocurrencies: Application of Tax Laws, Anti-Money Laundering/Anti-Terrorism Financing Source: Created by the Law Library of Congress based on information provided in this report. 

Application of Tax Laws 

ISO Code 

Country Name 

AR Argentina AT Austria BG Bulgaria FI Finland IS Iceland IL Israel IT Italy NO Norway PL Poland RO Romania RU Russia SK Slovakia ZA South Africa ES Spain SE Sweden GB United Kingdom 

Anti-Money Laundering & 

Anti-Terrorism Financing 

Laws 

ISO Code 

Country Name 

KY Cayman Islands CR Costa Rica CZ Czech Republic EE Estonia GI Gibraltar HK Hong Kong IM Isle of Man JE Jersey LV Latvia LI Liechtenstein LU Luxembourg SG Singapore 

Both 

ISO Code Country Name AU Australia CA Canada DK Denmark JP Japan CH Switzerland 

AR

CR

CA 

DK 

BG 

FI IS 

IL 

NO 

PL 

RO 

ZA 

ES 

SE 

GB 

KY 

EE 

GI 

CH 

D

IM 

JE 

LV 

LU 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 

Countries that have or are in the process of issuing 

their own national or regional cryptocurrency 

ISO Code Country Name AI Anguilla (ECCB) AG Antigua and Barbuda (ECCB) CN China DM Dominica (ECCB) GD Grenada (ECCB) IE Ireland LT Lithuania MH Marshall Islands MS Montserrat (ECCB) KN Saint Kitts and Nevis (ECCB) LC Saint Lucia (ECCB) VC Saint Vincent and the Grenadines 

(ECCB) 

VE Venezuela 

VE 

IE LT 

ECCB Member 

AI 

AG 

DM 

GD 

MS 

KN 

LC 

VC 

Countries that Have or Are Issuing National or RegCryptocurrencies Source & Note: Created by the Law Library of Congress based on information provided in this report. As discussed in the report, the which is the monetary authority for eight island economies in the Eastern Caribbean Currency Union, has entered into an agreement fo
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 7

The Americas 

Argentina 

Under the National Constitution of Argentina1

 the only authority capable of issuing legal currency 

is the Central Bank.2

 Bitcoins are not legal currency strictly speaking, since they are not issued by 

the government monetary authority and are not legal tender.3 Therefore, they may be considered 

money but not legal currency, since they are not a mandatory means of cancelling debts or 

obligations.4

 Although bitcoins are not specifically regulated, they are increasingly being used in 

Argentina, a country that has strict controls over foreign currencies.5 According to some experts6

a bitcoin may be considered a good or a thing under the Civil Code,7 and transactions with bitcoins 

may be governed by the rules of the sale of goods under the Civil Code.8

The latest amendment to the Income Tax Law provides that the profit derived from the sale of 

digital currency will be considered income and taxed as such.9

 

 

1

 CONSTITUCIÓN DE LA NACIÓN ARGENTINA [NATIONAL CONSTITUTION OF ARGENTINA] art. 75, para. 6, BOLETÍN 

OFICIAL [B.O.], Aug. 22, 1994, http://servicios.infoleg.gob.ar/infolegInternet/anexos/0-4999/804/norma.htm, 

archived at https://perma.cc/XN2T-C5G7.

2

 Ley No. 24.144, Carta Orgánica del Banco Central de la República Argentina [Law No. 24,144, Charter of the 

Central Bank of the Republic of Argentina] art. 30, B.O., Oct. 13, 1992, http://servicios.infoleg.gob.ar/infoleg 

Internet/anexos/0-4999/542/texact.htm, archived at https://perma.cc/2CVW-8VNX. 

3 El Banco Central Argentino Considera Riesgoso Operar con Bitcoins [Central Bank of Argentina Considers Risky 

Operations with Bitcoins], INFOTECNOLOGÍa (May 28, 2014), http://www.infotechnology.com/internet/El-BancoCentral-argentino-considera-riesgoso-operar-con-bitcoins-20140528-0003.html, archived at https://perma.cc/746AJBYG. 

4

 Mara Laudonia, El Vacío Legal del Bitcoin, Es o No Es Dinero? [The Legal Vacuum of the Bitcoin: Is It or Is It 

Not Money?], TÉLAM (Feb. 28, 2018), http://www.telam.com.ar/notas/201702/180185-el-vacio-legal-del-bitcoin-eso-no-es-dinero.html, archived at https://perma.cc/P2WE-L8F9.

5

 José Crettaz, Bitcoin: Fiebre Argentina por la Máquina de Dinero Digital [Bitcoin: Argentine Fever for the Digital 

Money Machine], LA NACIÓN (June 30, 2013), http://www.lanacion.com.ar/1596773-bitcoin-pasion-argentina-porla-nueva-maquina-de-hacer-billetes-digitales, archived at https://perma.cc/PMU9-KWB5; Diego Geddes, Argentina 

es uno de los países que más usa el bitcoin [Argentina Is One of the Countries that Uses the Bitcoin], CLARÍN (Dec. 

31, 2013), http://www.clarin.com/sociedad/Argentina-paises-Bitcoin-moneda-virtual_0_1057694271.html, archived 

at https://perma.cc/N8SA-5H9L. 

6 See, e.g., Andres Chomczyk, Situación Legal del Bitcoin en Argentina, ELBITCOIN.ORG (Oct. 10, 2013), 

http://elbitcoin.org/situacion-legal-de-bitcoin-en-argentina, archived at https://perma.cc/8GDA-CFPK.

7

 CÓDIGO CIVIL [CIVIL CODE] art. 2311, http://www.infoleg.gov.ar/infolegInternet/anexos/105000-109999/109481/ 

texact.htm, archived at http://www.infoleg.gov.ar/infolegInternet/anexos/105000-109999/109481/ texact.htm. 

8 Id. art. 1323. 

9

 Ley 27430 de Modificación del Impuesto a las Ganancias [Law 27430 Amending the Income Tax Law] art. 2, 

B.O., Dec. 29, 2017, http://www.telam.com.ar/notas/201702/180185-el-vacio-legal-del-bitcoin-es-o-no-esdinero.html, archived at https://perma.cc/M758-JEK.
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 8 

Belize 

Belize does not appear to have any legislation that specifically regulates cryptocurrencies.10 

Trading businesses in Belize are regulated by the International Financial Services Commission of 

Belize. The Commission does not appear to issue licenses for companies to engage in 

cryptocurrency exchanges.11 

Bermuda 

Bermuda does not have legislation or regulations that specifically govern cryptocurrencies. The 

government is, however, in the early stages of crafting legislation and regulations that aim to 

establish Bermuda as an international destination for digital currencies, similar to its position in 

the insurance and reinsurance sectors.12 

In late 2017, the government of Bermuda launched a task force to “advance the regulatory 

environment and develop Bermuda as a destination for Utility Tokens, Tokenized Securities, 

Cryptocurrencies and Coin Offerings.”13 The aims of the task force are as follows: 

 Creating a Crypto Currency Association with a defined Code of Conduct and Rules of 

Operation. The Bermuda Crypto Association is in the process of being formed and our 

aim is for this Group to be self-governing. 

 The Bermuda Monetary Authority in conjunction with the Ministry of Finance will 

work together to draft a letter or document confirming; Utility Tokens are not a security 

as long as there is no promise of future value. The will allow companies from all over 

the world to set up in Bermuda for Crowd Funding. 

Most importantly, the Legal and Regulatory Working Group will provide confirmation that 

Utility Tokens are not prohibited or contravening any local legislation.14

The task force has two working groups, directed by the Minister of National Security. One group 

is the Blockchain Legal and Regulatory Working Group and is tasked with ensuring that 

Bermuda’s legislation and regulations are conducive for the development of cryptocurrencies. The 

other is known as the Blockchain Business Development Working Group, which is tasked with 

aiding in the development of technology for cryptocurrencies. The Business Development Agency 

 

10 Legislation, INTERNATIONAL FINANCIAL SERVICES COMMISSION BELIZE, https://www.ifsc.gov.bz/legislation/ (last 

visited Mar. 21, 2018), archived at https://perma.cc/BTB7-9ZQ4. 

11 About IFSC, INTERNATIONAL FINANCIAL SERVICES COMMISSION BELIZE, https://www.ifsc.gov.bz/ (last visited 

Mar. 21, 2018), archived at https://perma.cc/7BRX-2TDN. 

12 Scott Neil, Island Spells Out Blockchain Ambitions, THE ROYAL GAZETTE (Jan. 26, 2018), http://www.royal 

gazette.com/international-business/article/20180126/island-spells-out-blockchain-ambitions, archived at

https://perma.cc/9BYN-LK5N. 

13 Press Release, The Government of Bermuda, Blockchain Working Group Members Announced (Nov. 22, 2017), 

https://www.gov.bm/articles/blockchain-working-group-members-announced, archived at 

https://www.gov.bm/online-services. 

14 Press Statement, Government of Bermuda, Cryptocurrency Initiative (Nov. 24, 2017), https://www.gov.bm/ 

articles/cryptocurrency-initiative, archived at https://perma.cc/ZSJ3-B5W9. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 9 

is also partnering with the government in this endeavor to help bring new business to the island, 

create new jobs, and boost its gross domestic product.15 

The government is also aiming to introduce a framework to regulate distributed ledger 

technologies (DLT) this year, to regulate firms that operate in or from Bermuda and use DLT to 

“store or transmit value belonging to others, such as virtual currency exchanges, coins and 

securitized tokens.”16 This would cover “the promotion and sale of utility tokens, aligned with the 

DLT framework.”17 There have been no further statements on the government of Bermuda’s public 

website that discuss the proposed regulatory framework. 

On January 17, 2018, the Bermuda Monetary Authority issued a press release warning of the risks 

of initial coin offerings, noting that whether such offerings fall within its regulatory boundaries is 

determined on a case-by-case basis, but that most such offerings are “unregulated because there 

are no requirements with which they are required to comply at this time.”18

Bolivia 

The use of virtual currencies is prohibited in Bolivia.19 The Central Bank has stated that the use of 

currency not issued by the monetary authority is not allowed in the country.20 Cryptocurrencies 

such as Bitcoin are not regulated and therefore, the Central Bank warns about the possible losses 

that people using them are exposed to.21

Brazil 

On November 16, 2017, the Brazilian Federal Reserve Bank (Banco Central do Brasil) issued 

Notice No. 31,379 alerting citizens to the risks arising from the custody and trading operations of 

virtual currencies. The notice stated in part as follows: 

Considering the growing interest of the economic agents (society and institutions) 

in so-called virtual currencies, the Brazilian Federal Reserve Bank warns that these are 

neither issued nor guaranteed by any monetary authority, so they have no guarantee of 

 

15 Id. 

16 Id. 

17 Sujha Sundararajan, Government of Bermuda Launches Cryptocurrency Task Force, COINDESK, (Nov. 24, 2017), 

https://www.coindesk.com/government-of-bermuda-launches-cryptocurrency-task-force/, archived at 

https://perma.cc/AL8K-VQFA. 

18 Press Release, Bermuda Monetary Authority, Risk of Initial Coin Offerings (Jan. 17, 2018), http://www.bma.bm/ 

BMANEWS/Risks of Initial Coin Offerings.pdf, archived at https://perma.cc/8KBG-BWAD. 

19 Banco Central de Bolivia Prohibe el Uso del Bitcoin y Otras 11 Monedas Virtuales [Central Bank of Bolivia 

Prohibits the Use of Bitcoin and Other 11 Virtual Currency], ENLACES BOLIVIA (Apr. 2017), http://www.enlaces 

bolivia.net/9263-Banco-Central-de-Bolivia-prohibe-el-uso-de-bitcoins-y-otras-11-monedas-virtuales, archived at

https://perma.cc/GFR6-7JSK. 

20 Comunicado, Banco Central Bolivia (Apr. 2017), https://www.bcb.gob.bo/webdocs/11_comunicados/04_ 

2017_COMUNICADO_Uso_monedas.pdf, archived at https://perma.cc/YW8G-2Z73. 

21 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 10 

conversion to sovereign currencies, nor are they backed in real assets of any kind, being 

the entire risk of the holders. 

. . . 

4. Companies that negotiate or keep so-called virtual currencies on behalf of users, 

natural persons or legal entities are not regulated, authorized, or supervised by the Brazilian 

Federal Reserve Bank. There is no specific regulation on virtual currencies in the legal and 

regulatory framework related to the National Financial System. The Brazilian Federal 

Reserve Bank, in particular, does not regulate or supervise operations with 

virtual currencies. 

5. So-called virtual currency is not to be confused with the definition of electronic 

money referred to in Law 12,865 of October 9, 2013, and its regulation by means of 

normative acts issued by the Brazilian Federal Reserve Bank, according to the guidelines 

of the National Monetary Council. . . . .22

Canada 

Canada allows the use of cryptocurrencies, including Bitcoin. According to a Financial Consumer 

Agency of Canada webpage on digital currencies, “[y]ou can use digital currencies to buy goods 

and services on the Internet and in stores that accept digital currencies. You may also buy and sell 

digital currency on open exchanges, called digital currency or cryptocurrency exchanges.”23

However, cryptocurrencies, including Bitcoin, are not considered legal tender in Canada; “[o]nly 

the Canadian dollar is considered official currency in Canada.”24 The Currency Act defines legal 

tender as 

 bank notes issued by the Bank of Canada under the Bank of Canada Act 

 coins issued under the Royal Canadian Mint Act[.]25 

Canada’s tax laws and rules also apply to digital currency transactions, including those made with 

cryptocurrencies, and digital currencies are subject to the Income Tax Act.26 The Canada Revenue 

Agency (CRA) “has characterized cryptocurrency as a commodity and not a government-issued 

 

22 Banco Central do Brasil, Comunicado No. 31.379, de 16 de Novembro de 2017, http://www.bcb.gov.br/pre/ 

normativos/busca/normativo.asp?numero=31379&tipo=Comunicado&data=16/11/2017, archived at

https://perma.cc/G4GM-8HV6 (translation by author). 

23 Digital Currency, FINANCIAL CONSUMER AGENCY OF CANADA, https://www.canada.ca/en/financial-consumeragency/services/payment/digital-currency.html (last modified Jan. 19, 2018), archived at https://perma.cc/G3PYH8NR. 

24 Id. 

25 Currency Act, R.S.C., 1985, c. C-52, § 8, http://laws-lois.justice.gc.ca/eng/acts/c-52/page-1.html, archived at

https://perma.cc/4A4E-3XBH. 

26 Digital Currency, supra note 23. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 11 

currency.”27 Accordingly, the use of cryptocurrency to pay for goods or services is “treated as a 

barter transaction.”28 According to the Financial Consumer Agency, 

[g]oods purchased using digital currency must be included in the seller’s income for tax 

purposes. GST/HST also applies on the fair market value of any goods or services you buy 

using digital currency. 

. . . 

When you file your taxes you must report any gains or losses from selling or buying 

digital currencies.29

On the issue of taxation, the Canada Revenue Agency adds that, 

[w]here digital currency is used to pay for goods or services, the rules for barter transactions 

apply. A barter transaction occurs when any two persons agree to exchange goods or 

services and carry out that exchange without using legal currency. For example, paying for 

movies with digital currency is a barter transaction. The value of the movies purchased 

using digital currency must be included in the seller’s income for tax purposes. The amount 

to be included would be the value of the movies in Canadian dollars.30

On June 19, 2014, the Governor General of Canada gave his assent to Bill C-31 (An Act to 

Implement Certain Provisions of the Budget Tabled in Parliament on February 11, 2014, and Other 

Measures),31 which includes amendments to Canada’s Proceeds of Crime (Money Laundering) 

and Terrorist Financing Act. The new law treats virtual currencies, including Bitcoin, as “money 

service businesses” for the purposes of the anti-money laundering law.32 The Act is regarded as 

the “world’s first national law on digital currencies, and certainly the world’s first treatment in law 

of digital currency financial transactions under national anti-money laundering law.”33

 

27 Mariam Al-Shikarchy et al., Gowling WLG, Canadian Taxation of Cryptocurrency ... So Far, LEXOLOGY.COM

(Nov. 14, 2017), https://www.lexology.com/library/detail.aspx?g=6283077e-9d32-4531-81a5-56355fa54f47, 

archived at https://perma.cc/H9ZW-47KB. 

28 Id. 

29 Id. 

30 What You Should Know About Digital Currency, CANADA REVENUE AGENCY, https://www.canada.ca/en/revenueagency/news/newsroom/fact-sheets/fact-sheets-2015/what-you-should-know-about-digital-currency.html (last 

updated Mar. 17, 2015), archived at https://perma.cc/CYV2-236S. 

31 Bill C-31, An Act to Implement Certain Provisions of the Budget Tabled in Parliament on February 11, 2014 and 

Other Measures, Second Session, Forty-first Parliament, 62-63 Elizabeth II, 2013-2014, Statutes of Canada 2014 

Ch. 20, http://www.parl.ca/DocumentViewer/en/41-2/bill/C-31/royal-assent, archived at https://perma.cc/2N7QE68C. 

32 Tariq Ahmad, Canada: Canada Passes Law Regulating Virtual Currencies as “Money Service Businesses”

GLOBAL LEGAL MONITOR (July 9, 2014), http://www.loc.gov/law/foreign-news/article/canada-canada-passes-lawregulating-virtual-currencies-as-money-service-businesses/, archived at https://perma.cc/BQA6-K7MV. 

33 Christine Duhaime, Canada Implements World’s First National Bitcoin Law, DUHAIME LAW (June 22, 2014), 

https://www.duhaimelaw.com/2014/06/22/canada-implements-worlds-first-national-bitcoin-law/, archived at

https://perma.cc/Z3AQ-SKME. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 12 

On August 24, 2017, the Canadian Securities Administrators (CSA) published CSA Staff Notice 

46-307 on Cryptocurrency Offerings,34 “which outlines how securities law requirements may 

apply to initial coin offerings (ICOs), initial token offerings (ITOs), cryptocurrency investment 

funds and the cryptocurrency exchanges trading these products.”35 On February 1, 2018, The 

Globe and Mail reported that the Ontario Securities Commission had approved the country’s first 

blockchain fund—Blockchain Technologies ETF.36 

The Bank of Canada, Payments Canada, and R3, a distributed database technology company, are 

involved in a research initiative called Project Jasper “to understand how distributed ledger 

technology (DLT) could transform the wholesale payments system.”37 Phases 1 and 2 of the project 

are “focused on exploring the clearing and settlement of high-value interbank payments using 

DLT.” Phase 3 explores “the potential benefits from integrating this “cash on ledger” with other 

assets such as foreign exchange and securities.”38

Chile 

According to an unofficial statement from the Central Bank of Chile virtual currencies have no 

specific legal recognition in the country and trade and transactions involving cryptocurrency are 

not subject to the regulation or supervision of the monetary authority.39

Colombia 

The Superintendencia Financiera (SF) (Financial Superintendency) of Colombia warned in a June 

2017 circular that bitcoin is not currency in Colombia and therefore may not be considered legal 

tender susceptible of cancelling debts.40 The SF further emphasized that the Colombian peso is the 

 

34 CSA Staff Notice 46-307 Cryptocurrency Offerings, ONTARIO SECURITIES COMMISSION (Aug. 24, 2017), 

http://www.osc.gov.on.ca/en/SecuritiesLaw_csa_20170824_cryptocurrency-offerings.htm, archived at

https://perma.cc/7XF6-3T3E. 

35 Press Release, Canadian Securities Administrators, Canadian Securities Regulators Outline Securities Law 

Requirements That May Apply to Cryptocurrency Offerings (Aug. 24, 2017), https://www.securitiesadministrators.ca/aboutcsa.aspx?id=1606, archived at https://perma.cc/4KL4-YSEV. 

36 Clare O’Hara, OSC Approves Canada’s First Blockchain ETF, THE GLOBE AND MAIL (Feb. 1, 2018), 

https://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/osc-approves-canadas-first-blockchainetf/article37828183/, archived at https://perma.cc/V6TD-KZ5C. 

37 Fintech Experiments and Projects, BANK OF CANADA, https://www.bankofcanada.ca/research/digital-currenciesand-fintech/fintech-experiments-and-projects/ (last visited Apr. 6, 2018), archived at https://perma.cc/9F77-QHFN. 

38 Id. 

39 Claudia Ramírez, El Avance de las Monedas Virtuales en Chile: Cuatro Empresas Transan Más de US$ 7 

Millones Mensuales y Suman Casi 20 Mil Clientes [The Advance of Virtual Currency in Chile: Four Companies 

Transact More than US$ 7 Million Monthly and Adds Almost 20 Thousand Clients], ECONOMÍA Y NEGOCIOS (July 2, 

2017), http://www.economiaynegocios.cl/noticias/noticias.asp?id=375043, archived at https://perma.cc/VGM6-

725C. 

40 Superintendencia Financiera de Colombia, Carta Circular 52 de 2017, Riesgos Potenciales Asociados a las 

Operaciones Realizadas con “Monedas Electronicas-Criptomonedas o MonedasVirtuales” [Potential Risks 

Associated with Operations Related to “Electronic Currency-Cryptocurrencies or Virtual Money”] (June 22, 2017), 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 13 

only legal currency, and that the Banco de la República has the exclusive authority to issue money 

in Colombia.41 According to the SF, cryptocurrencies have no value under capital market laws and 

therefore are also not recognized as a security.42 The SF warned controlled financial institutions 

that they are not authorized to protect, invest, broker, or manage virtual money operations.43 The 

SF called on persons to become informed and assume the risks related to virtual currencies if they 

choose to trade them, since these currencies do not have any private or state guarantee.44

Costa Rica 

The Central Bank of Costa Rica and its decentralized agencies (órganos de desconcentración 

máxima) issued a statement in October 2017 to participants in the financial, stock, securities, 

insurance, and pension markets, and to exchange houses, remittance agencies, the economic sector, 

and the general public, warning them about the risks associated with the acquisition of 

cryptocurrencies with the intention of using them either as financial savings or as a means of 

payment in Costa Rica. The statement explained that articles 42-51 of the Organic Law of the 

Central Bank establishes the colón as the monetary currency in Cost Rica. The statement also 

asserted that the Law designates the Central Bank as the sole issuer of bills and coins and 

establishes the unlimited power of the colón to liquidate all kinds of pecuniary obligations, both 

public and private. Due to this, the statement said, Bitcoin and similar cryptocurrencies are not 

recognized as legal tender in the country and do not have the backing of the Central Bank or the 

state of Costa Rica. Moreover, cryptocurrencies’ effectiveness or use as a means of payment in 

the economy of the country cannot be guaranteed, nor can any person be forced to accept them as 

a means of payment for the transaction of goods and services. 

The statement also asserted that because cryptocurrencies are not issued by a foreign central bank, 

they cannot be considered a foreign currency under the monetary exchange regime, and for this 

reason they do not have the security offered by the free currency convertibility provisions of 

articles 48 and 49 of the Organic Law of the Central Bank. 

In the statement, the Central Bank and its decentralized agencies emphasized that they do not in 

any way regulate or supervise cryptocurrencies as a means of payment; moreover, they emphasized 

that transactions with cryptocurrencies cannot be made through the National System of Electronic 

Payment (SINPE) used in Costa Rica. 

The statement warned that if any financial entity becomes directly or indirectly involved with its 

customers in the commercialization or use of any of these digital assets, such operation are 

undertaken at the financial entity’s own risk and responsibility, as well as that of its customers. 

The statement added that the foregoing is in accordance with the obligation established by 

 

available at https://actualicese.com/normatividad/2017/06/22/carta-circular-52-de-22-06-2017/, archived at 

https://perma.cc/V4MW-TNUD.

41 Id. 

42 Id. 

43 Id. 

44 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 14 

prudential regulations on the prevention of money laundering and the financing of terrorism, which 

imposes a duty on financial entities to carry out the necessary risk analysis with respect to 

new technologies. 

The statement reiterated that any person who acquires digital currencies, either as a form of savings 

or with the interest of using them as means of payment, and those who accept them with this 

function in commercial transactions, also do so at their own risk and responsibility, warning that 

they will be participating in operations not contemplated by the banking regulations or the payment 

mechanisms authorized by the Central Bank of Costa Rica. The statement concluded by saying 

that the warnings it contains are not limiting and do not exclude other risks inherent in the use of 

digital currency, and that the Central Bank will continue to study the issue.45 

Ecuador 

The Central Bank of Ecuador has stated that Bitcoin is not an authorized payment method in 

Ecuador.46 It further clarified that the bitcoin, as a cryptocurrency, is not backed by any authority, 

because its value is based merely on speculation.47 Furthermore, financial transactions with 

bitcoins are not controlled, supervised, or regulated by any Ecuadoran entity, and therefore they 

represent a financial risk for those who invest in them.48

The Central Bank also stated, however, that the purchase and sale of cryptocurrencies such as 

bitcoin through the internet are not forbidden,49 but it reiterated that bitcoin is not legal tender and 

is not an authorized payment method for goods and services according to the Código Orgánico 

Monetario y Financiero (Organic Monetary and Financial Code).50

El Salvador 

The Central Reserve Bank of El Salvador issued a statement on November 6, 2017, expressing its 

position on cryptocurrencies, which can be summarized as follows: 

 

45 Press Release, Banco Central de Costa Rica, Posición del Banco Central de Costa Rica (BCCR) y sus Órganos de 

Desconentración Máxima (ODM) con Respecto a las Criptomonedas (Oct. 9, 2017), http://www.bccr.fi.cr/noticias/ 

historico/2017/Posicion_bccr_criptomonedas.html, archived at https://perma.cc/KD4P-WXX8. 

46 Comunicado Oficial a la Ciudadanía, BANCO CENTRAL DEL ECUADOR (Jan. 8, 2018), https://www.bce.fin.ec/ 

index.php/boletines-de-prensa-archivo/item/1028-comunicado-oficial-sobre-el-uso-del-bitcoin, archived at

https://perma.cc/9AVZ-9H3V. 

47 Id. 

48 Id. 

49 Id. 

50 CÓDIGO MONETARIO Y FINANCIERO [MONETARY AND FINANCE CODE] art. 94, REGISTRO OFICIAL [R.O.], Sept. 12, 

2014, http://www.asambleanacional.gob.ec/es/system/files/ro_codigo_organico_monetario_y_financiero.pdf, 

archived at https://perma.cc/M63F-4ZRG.
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 15 

 At the international and national level there is a discussion about the use of cryptocurrencies. 

 Cryptocurrencies are not legal tender in any jurisdiction; they, unlike the conventional 

currencies issued by a monetary authority, are not controlled or regulated and their price is 

determined by the supply and demand of their market. 

 In accordance with articles 36–37 of the Organic Law of the Central Reserve Bank of El 

Salvador, and articles 3 and 6 of the Monetary Integration Law of El Salvador, the colón and 

the United States dollar are the only unrestricted legal tender that can be used for the payment 

of monetary obligations in the national territory. 

 Any transaction that is made with virtual currency is the responsibility and risk of the person 

who carries it out. 

 Fundraising using digital currencies is prohibited. According to article 184 of the Banking 

Law, all public fundraising with or without advertising, and in any form, is prohibited by those 

who are not authorized in accordance with the Banking Law, or other laws in force that 

regulate fundraising. 

 According to the Central Reserve Bank, as the monetary authority, regulator of the financial 

system, and watchdog of payment systems, there is currently no legal or regulatory framework 

applicable to cryptocurrencies or their equivalents. 

 The Central Reserve Bank will remain vigilant on this and other related issues.51

Guatemala 

In December 2017 the acting President of the Bank of Guatemala, Sergio Recinos, confirmed that 

both Bitcoin and other types of cryptocurrencies are not legal tender in the country and do not have 

regulatory backing. He stated that according to Guatemalan legislation, the quetzal is the national 

currency and the Bank of Guatemala is the only issuer of bills and coins within the national 

territory, in accordance with articles 1 and 2 of the Monetary Law (Ley Monetaria). In this sense, 

virtual currencies are not recognized as a currency in Guatemala and neither are they recognized 

as foreign currency; therefore, they do not constitute a means of legal payment. Recinos added 

that due to their anonymous origin, cryptocurrencies can easily be used for illicit activities, such 

as money laundering, terrorism, drug purchases, and tax evasion, among others, to a degree that 

could be higher than with cash. Moreover, he said that cryptocurrencies are exposed to 

cyberattacks or hacking, which could lead to irreversible loss for the user. Lastly, Recinos warned 

that cryptocurrencies are not backed by any government and do not depend on a central bank 

issuer; therefore, no one is trying to maintain their value over time. He recommended that persons 

carefully examine the issue before deciding to invest in cryptocurrencies.52 

 

51 Aviso sobre el Uso de Criptomonedas y Similares, BANCO CENTRAL DE RESERVA DE EL SALVADOR (Nov. 6, 

2017), http://www.bcr.gob.sv/esp/index.php?option=com_k2&view=item&id=1067:aviso-sobre-el-uso-decriptomonedas-o-similares&Itemid=168, archived at https://perma.cc/JDR7-EHYK. 

52 Rosa María Bolaños, Banguat Refiere que Criptomonedas no son un Medio de Pago Legal, PRENSA LIBRE (Dec. 

19, 2017), http://www.prensalibre.com/economia/banguat-refiere-que-criptomonedas-no-son-un-medio-de-pagolegal, archived at https://perma.cc/5TWQ-8Q7B. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 16 

Honduras 

In January 2018, the Honduran Central Bank issued a statement in response to inquiries made by 

economic and financial agents in relation to the use of cryptocurrencies within the national 

territory, either as an investment or as a means of payment for goods and services. The response 

stated that cryptocurrencies such as bitcoin, ethereum, litecoin, and other similar cryptocurrencies 

do not have the backing of the Central Bank of Honduras. Therefore, the Central Bank does not 

regulate or guarantee their use and such cryptocurrencies do not enjoy the legal protection granted 

by the laws of the country in terms of the payment system. As a result, any transaction that is 

made with this type of currency or virtual assets is the responsibility and risk of the person who 

conducts the transaction, the statement said.53 

Mexico 

Mexico’s Law to Regulate Financial Technology Companies, enacted in March 2018, includes a 

chapter on operations with “virtual assets,” commonly known as cryptocurrencies.54 This chapter 

defines virtual assets as representations of value electronically registered and utilized by the public 

as a means of payment for all types of legal transactions, which may only be transferred 

electronically.55 

In addition, Mexico has enacted a law extending the application of its laws regarding money 

laundering to virtual assets, thereby requiring financial institutions that provide services relating 

to such assets to report transactions exceeding certain amounts.56 

Mexico’s Central Bank is granted broad powers under the Law to regulate virtual assets, including 

 specifying those virtual assets that financial companies are allowed to operate with in the 

country, defining their particular characteristics, and establishing the conditions and 

restrictions applicable to transactions with such assets; and 

 authorizing financial companies to perform transactions with virtual assets.57

 

53 Banco Central de Honduras, Comunicado (Jan. 19, 2018), http://www.bch.hn/download/boletines_prensa/2018/ 

boletin_otro_01_18.pdf, archived at https://perma.cc/JN2B-PSC8. 

54 Ley para Regular las Instituciones de Tecnología Financiera [Law to Regulate Financial Technology Companies] 

arts. 30–34, DIARIO OFICIAL DE LA FEDERACIÓN [D.O.F], Mar. 9, 2018, available as originally enacted on the 

website of Mexico’s House of Representatives at http://www.diputados.gob.mx/LeyesBiblio/pdf/LRITF_ 

090318.pdf, archived at https://perma.cc/SB6N-RQY7. 

55 Id. art. 30. 

56 Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita [Federal Law 

for the Prevention and Identification of Transactions with Resources of Illicit Origin] art. 17(XVI), Nota de 

vigencia, D.O.F., Oct. 17, 2012, available as amended through March 2018 on the website of Mexico’s House of 

Representatives at http://www.diputados.gob.mx/LeyesBiblio/pdf/LFPIORPI_090318.pdf, archived at

https://perma.cc/4UVN-GM98. . 

57 Ley para Regular las Instituciones de Tecnología Financiera [Law to Regulate Financial Technology Companies] 

arts. 30–32, 88. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 17 

Pertinent regulations applicable to these assets must be issued by Mexico’s Central Bank within a 

year from the enactment of the Law.58 

Financial companies that carry out transactions with virtual assets must disclose to their clients the 

risks applicable to these assets.59 At a minimum, these companies must inform their clients, in a 

clear and accessible manner on their respective websites or through the means that they utilize to 

provide services, of the following: 

 A virtual asset is not a legal currency and is not backed by the federal government nor by 

Mexico’s Central Bank; 

 Once executed, transactions with virtual assets may be irreversible; 

 The value of virtual assets is volatile; and 

 Technological, cybernetic, and fraud risks are inherent in virtual assets.60

Venezuela 

Under Decree 3196 of December 8, 2017,61 the government of Venezuela was authorized to create 

its own cryptocurrency, the petro, which would be physically backed by Venezuelan barrels of 

oil.62 One petro would be backed by a purchase-sale contract for one barrel of Venezuelan oil as 

quoted in the OPEC Reference Basket, as well as other commodities, including gold, diamond, 

coltan, and gas.63 

Decree 3196 mainly provides for the operational details of the petro, including its issuance, mining, 

and trading in Venezuela according to the rules on purchase and sale contained in the Civil Code.64

According to a legal expert on information technology law, all cryptocurrencies are considered a 

financial asset subject to the rules applicable to such assets under Decree 3196 and none of its 

provisions declare them illegal.65 The Decree also creates the Superintendencia de los 

 

58 Id. sexta disposicion transitoria (II). 

59 Id. art. 34. 

60 Id.

61 Decreto 3196 Mediante el cual se Autoriza la Creación de la Superintendencia de los Criptoactivos y Actividades 

Conexas Venezolana [Decree 3196 Authorizing the Creation of the Venezuelan Superintendency of Cryptoassets 

and Related Activities], GACETA OFICIAL [G.O.], Dec. 8, 2017, http://gacetaoficial.tuabogado.com/gacetaoficial/decada-2010/2017/gaceta-oficial-6346-del-8-diciembre-2017, archived at https://perma.cc/CSC3-BKBV. 

62 Id. art. 4. 

63 Id. 

64 Id. art. 3. 

65 Raymond Orta, Efectos sobre el Bitcoin y otras Criptomonedas del Decreto sobre Creación del PETRO y la 

Superintendencia de los Criptoactivos [Effects of Decree Creating the PETRO and the Superintendency of Crypto 

Assets on Bitcoin and other Cryptocurrencies], TUABOGADO.COM ( Dec. 28, 2017), http://www.tuabogado. 

com/venezuela/secciones/derecho/informatico/efectos-sobre-el-bitcoin-y-otras-criptomonedas-del-decreto-sobrecreacion-del-petro-y-la-superintendencia-de-los-criptoactivos-raymondorta, archived at https://perma.cc/3RU6-

ANVU. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 18 

Criptoactivos y Actividades Conexas Venezolana (Superintendency of Venezuelan Crypto-Assets 

and Related Activities) as the supervisory authority of cryptocurrencies.66

Decree 3196 states that the holder of petro will be able to exchange the market value of the 

cryptoasset for the equivalent in another cryptocurrency or in bolívares (the traditional currency 

of Venezuela) at the market exchange rate published by a national cryptoasset exchange house.67 

The holder of each petro would also own a virtual wallet, which was to be his/her own 

responsibility, along with the risks related to its custody and management.68 

According to Decree 3196, an initial coin offering will be made through auction or direct 

assignment by the Superintendence of Cryptoassets and Related Venezuelan Activities.69

On March 8, the Asamblea Nacional (National Assembly, the Venezuelan Congress), declared that 

the issuance of a domestic cryptocurrency such as the petro is illegal, because in order to enter into 

a public debt and borrow on behalf of the Venezuelan government, congressional approval and a 

special law is required under the National Constitution.70 In addition, only the Central Bank of 

Venezuela may issue national currency.71 The Asamblea National further stated that oil reserves 

are public national assets that belong to the Republic and are non-transferrable assets, and therefore 

cannot be used as guarantee for any debt.72 

Despite these declarations by the Asamblea National, the Government has said the petro will 

become legal tender for all transactions involving government institutions within 120 days of April 

9, 2018.73

 

 

66 Id. art. 1. 

67 Decreto 3196, art. 5. 

68 Id. 

69 Id. art. 8. 

70 Asamblea Nacional de la República Bolivariana de Venezuela, Acuerdo sobre la Implementación del Petro 

[Accord on the Implementation of Petro] (Mar. 6, 2018), http://www.asambleanacional.gob.ve/documentos_ 

archivos/acuerdo-sobre-la-implementacion-del-petro-191.pdf, archived at https://perma.cc/L6GQ-QUXV (citing 

CONSTITUCION DE LA REPÚBLICA BOLIVARIANA DE VENEZUELA [CRBV] art. 312, G.O., Mar. 24, 2000, 

http://www.cne.gov.ve/web/normativa_electoral/constitucion/titulo2.php#art12, archived at https://perma.cc/3BLGR5P4). 

71 Id. (citing CRBV art. 318). 

72 Id. (citing CRBV art. 12). 

73 Decreto Constituyente sobre Criptoactivos y la Criptomoneda Soberana Petro [Constitutional Decree on 

Cryptocurrency and the Sovereign Cryptocurrency Petro], G.O., Apr. 9, 2018, pp. 3–7, available at

http://pandectasdigital.blogspot.com/2018/04/decreto-constituyente-sobre.html, archived at 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 19 

The Caribbean 

I. Eastern Caribbean Central Bank 

The Eastern Caribbean Central Bank (ECCB) is the monetary authority for eight island economies 

in the Eastern Caribbean Currency Union that use a common currency known as the Eastern 

Caribbean dollar74—Anguilla, Antigua and Barbuda, the Commonwealth of Dominica, Grenada, 

Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.75 On March 

9, 2018, the ECCB signed a memorandum of understanding with the Barbados-based financial 

technology company Bitt Inc. agreeing to participate in a pilot program that will enable it to issue 

a digital currency. Expected to start at the end of 2018, the pilot will specifically involve 

the development of a digital Eastern Caribbean Dollar using distributed ledger technology 

with a blockchain platform specifically designed for a safe and secure digital financial 

ecosystem. Essentially, [it] would be a proof of concept, designed to demonstrate the 

viability and functionality of the ECCB issuing Digital Eastern Caribbean Dollars.76 

The ECCB will work closely with Bitt Inc. to 

develop, deploy and test technology which focuses on data management, compliance and 

transaction monitoring system for Know Your Customer, Anti-Money Laundering, and 

Combating the Financing of Terrorism. . . . The pilot will also focus on developing a secure, 

resilient digital payment and settlement platform with embedded regional and global 

compliance; and the issuance of a digital EC [Eastern Caribbean] currency which will 

operate alongside physical EC currency.77 

While this summarizes the regional effort to adopt a common digital currency, national efforts by 

ECCB member states to deal with emerging cryptocurrencies are discussed below, along with the 

efforts of other Caribbean countries that are not participating in the ECCB pilot. 

 

 

74 TREVOR O.B. BRATHWAITE, ECCB, MONETARY UNIONS IN THE CARIBBEAN CONTEXT – THE CHALLENGES FACED 

BY THE EASTERN CARIBBEAN CURRENCY UNION SINCE THE CRISIS (Mar. 2016), http://www.centralbank.cw/uploads/ 

files/Monetary Unions in the Caribbean Context II.pdf, archived at https://perma.cc/VMQ2-V8HP. 

75 Eastern Caribbean Central Bank Agreement Act 1983, http://eccb.slu.lc/files/documents/legal_regulatory/bank_ 

agreement1983.pdf, archived at https://perma.cc/5YHT-3T7Y. 

76 ECCB STRATEGIC PLAN 2017–2021, at 58, https://www.eccb-centralbank.org/files/documents/Stategic_ 

Plan/ECCB_Stategic_Plan_2017%20Revised%202.2.18.pdf, archived at https://perma.cc/GL38-SSJP; Press 

Release, ECCB, ECCB to Embark on Blockchain Pilot Initiative With Bitt Inc. (Mar. 13, 2018), https://www.eccbcentralbank.org/news/view/eccb-to-embark-on-blockchain-pilot-initiative-with-bitt-inc, archived at

https://perma.cc/UD6D-AT44. 

77 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 20 

II. Country Surveys 

Anguilla 

The Anguillan government announced at the end of 2017 that it would introduce legislation, known 

as the Anguilla Utility Token Offering Act (the AUTO Act), to regulate initial offerings of certain 

types of cryptocurrencies (ICOs).78 The government has noted that some types of tokens are 

considered to be securities, and thus are already regulated under the existing securities 

framework,79 but that 

there remained a large swath of non-security tokens with no clear guidance as to where 

they would fit in the emerging blockchain economy. Therefore, we focused our efforts on 

creating a safe and effective regulatory framework for non-security token offerings, which 

appear to represent a majority of the current capital raising activity within the 

blockchain community.80 

The new legislation will serve to provide a regime for Anguillan entities to register in order to 

conduct an offering of non-security tokens, which are tokens that do not have the same features 

securities do, but that “have one or more ‘utility’ features within the issuer’s current or proposed 

blockchain platform.”81 

The AUTO Act is structured in a way to regulate utility tokens, while avoiding the burden imposed 

by securities regulations and the “higher levels of regulatory scrutiny that would have to take place 

were the tokens to fall under securities laws.”82 As such, utility tokens are categorized as those 

that may be redeemed for consumer goods or services, rather than a share in profits or an interest 

in technology connected to the offering.83 

 

78 Lonnie Hobson, The Government of Anguilla Announces World’s First Cryptocurrency Registration Process for 

“Utility Token Offerings”, LINKEDIN (Nov. 15, 2017), https://www.linkedin.com/pulse/government-anguillaannounces-worlds-first-process-utility-hobson/. 

79 Securities Act, cap. S13, REVISED STATUTES OF ANGUILLA, at 3, http://www.gov.ai/laws/S013-00-Securities%20 

Act/. Section 1 of the Securities Act defines “securities” as “shares and stock in the share capital of a company; (b) 

any instrument creating or acknowledging indebtedness which is issued or proposed to be issued by a company 

including, in particular, debentures, debenture stock, loan stock, bonds and notes; (c) bonds and other instruments 

creating or acknowledging indebtedness issued by or on behalf of any Participating Government; (d) any right 

(whether conferred by warrant or otherwise) to subscribe for shares or debt securities (e) any option to acquire or 

dispose of any other security; (f) units in a collective investment scheme, including shares in or securities of an 

investment company; and (g) any other instruments prescribed to be securities for the purposes of this Act.” 

80 Government of Anguilla Announces Regulatory Framework for Non-Security Token Offerings, ECONOTIMES

(Nov. 14, 2017), https://www.econotimes.com/Government-of-Anguilla-announces-regulatory-framework-for-nonsecurity-token-offerings-1005960, archived at https://perma.cc/P87S-AC86. 

81 Hobson, supra note 78. 

82 Michaela Ross & Lydia Beyoud, A Tiny Caribbean Island Looks to Lead in ICO Regulation, BLOOMBERG LAW

(Dec. 19, 2017), https://www.bna.com/tiny-caribbean-island-n73014473343/, archived at https://perma.cc/WG8MPVVQ. 

83 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 21 

In order to become registered, the entity must put together a “white paper,” along with its 

disclosure documents, which must undergo a technical and legal review that must include 

information about the companies structure, location, business status, description of the project, a 

technical and legal description of the tokens that will be offered, how any proceeds made will be 

used, and anti-money laundering provisions along with any risk factors present for purchasing the 

tokens.84 The Anguillan government will financially benefit from the legislation by collecting a 

registration fee, along with a “1.5 percent levy on the total amount raised by a token offering.”85

The government of Anguilla has stated as follows: 

We believe this new AUTO Act will help Anguilla become the leader in establishing best 

practices for cryptocurrency offerings, to protect the people of Anguilla and the 

participating public. . . . We believe the AUTO Act would be a significant step in the right 

direction, to provide clearly defined rules and increased safety for the 

blockchain community.86

On December 13, 2017, the Executive Council of Anguilla stated that officials should formulate a 

regulatory regime for Utility Token Offerings that would be submitted to the Governor.87 No 

further information about the status of this bill has been located. 

Anguilla has also signed up to participate in the ECCB pilot, which will test the use of 

cryptocurrencies alongside the country’s national currency (see ECCB discussion, supra). 

Antigua and Barbuda 

Antigua and Barbuda currently does not have any legislation that specifically regulates the use of 

cryptocurrency. Newspapers on Antigua and Barbuda have reported that the government of 

Antigua has instructed its Attorney General to “draft laws for the implementation of bitcoin.”88 

No specifics or further information on this reported proposed legislation was located. 

The government of Antigua and Barbuda has reportedly permitted the funding of projects and 

charities in the country through an Initial Coin Offering for Development89 by selling a state-

 

84 Hobson, supra note 78. 

85 Ross & Beyoud, supra note 82. 

86 Hobson, supra note 78. 

87 Minutes of the 123rd Meeting of the Eleventh Anguilla Executive Council Held on Wednesday 13th December 

2017, Ex Min. 17/574, http://www.gov.ai/documents/exco/171213%20Mn17-123.pdf, archived at

https://perma.cc/N7DL-VYQB. 

88 Jima Augustin, A&B Looking to Embrace Bitcoin, THE DAILY OBSERVER (Apr. 28, 2017), https://antiguaobserver. 

com/ab-looking-to-embrace-bitcoin/, archived at https://perma.cc/KLV5-8VXM. 

89 Press Release, CNET Antigua, The Government of Antigua and Barbuda Supports CNET’s Investment 

Development Projects and Charities Funded by the Initial Coin Offering for Development (Apr. 28, 2018), 

https://www.prnewswire.com/news-releases/the-government-of-antigua-and-barbuda-supports-cnets-investmentdevelopment-projects-and-charities-funded-by-the-initial-coin-offering-for-development-300605628.html, archived 

at https://perma.cc/NA4Q-VX6S. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 22 

supported (not state-sponsored) Antigua and Barbuda Development Coin, based on the Ethereum 

cryptocurrency.90 No further information on this offering via a government source was located. 

Antigua and Barbuda has signed up to participate in the ECCB pilot, which will test the use of 

cryptocurrencies alongside the country’s national currency (see ECCB discussion, supra). 

Bahamas 

The Bahamas does not have any legislation that specifically applies to cryptocurrencies. 

Regulation of cryptocurrencies in the Bahamas currently varies according to whether the currency 

is considered to be a security, currency, or commodity.91 Despite not having legislation 

specifically designed to addresses cryptocurrencies, the Central Bank of the Bahamas has stated 

that regulations it issued in 2017, which provide a framework for a system of national electronic 

payments services, also apply to cryptocurrencies.92 The regulations “apply best international 

standards for the provision of local payments services” and define “electronic money” as 

electronically stored monetary value as represented by a claim on the issuer, which is issued 

on receipt of funds for the purpose of making payment transactions and which is accepted 

as a means of payment by persons other than the issuer, and includes monetary value stored 

magnetically or in any other tangible or intangible device (such as a SIM card 

or software).93

The Central Bank further stated that converting instruments in and out of the Bahamian currency 

would be governed by Exchange Control Regulations, and that “[t]he Securities Commission of 

The Bahamas would reserve the right to supervise any non-payments aspect of crypto currency 

operations domiciled in The Bahamas.”94 

The Bahamas is actively looking at developing blockchain technology to use on the Island to help 

create efficient and simplified transactions. Specifically, the government has noted that “[t]he 

 

90 Adam Reese, Antigua and Barbuda to Support Ethereum-based ‘ICO For Development’, ETHNEWS (Feb. 28, 

2018; updated Mar. 1, 2018), https://www.ethnews.com/antigua-and-barbuda-to-support-ico-for-development, 

archived at https://perma.cc/DD5P-6994. 

91 Aliya Allen & Graham Thompson, The Bahamas’ Place in a Cryptographic World: A Whitepaper, 

GRAHAMTHOMPSON (Mar. 2018), http://www.grahamthompson.com/uploads/1609/doc/Crypto_Article,_AAllen,_ 

March_2018,_IBFS.pdf, archived at https://perma.cc/Y7SS-P7VL.

92 Remarks by John Rolle, Governor of the Central Bank of the Bahamas, at Blockchain Seminar, Digital Currency – 

Extending the Payments System Modernisation Initiative (Mar. 1, 2018), http://www.centralbankbahamas. 

com/download/031486300.pdf, archived at https://perma.cc/XUH7-3C83. 

93 Payment Instruments Oversight Regulations 2017, SI 53/2017, art. 2, EXTRAORDINARY OFFICIAL GAZETTE OF THE 

BAHAMAS (July 26, 2017), http://laws.bahamas.gov.bs/cms/images/LEGISLATION/SUBORDINATE/2017/2017-

0053/PaymentInstrumentsOversightRegulations2017_1.pdf, archived at https://perma.cc/B5VG-5222. 

94 Remarks by John Rolle, supra note 92. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 23 

Bahamas is also currently developing programs for block chain-based solutions, fin-tech and 

crypto-currency companies, and we intend to promote block chain as a sub-industry within ICT.”95 

The Bahamas is in the process of considering a bill that would bring virtual currencies within the 

ambit of the proceeds of crime legislation.96 Clause 2 of the bill defines “virtual currency” as 

a digital representation of value which can be digitally traded and functions as – (a) a 

medium of exchange; (b) a unit of account; or (c) a store of value, that does not have legal 

tender status or carry any security or guarantee in any jurisdiction.97

If enacted, the bill’s provisions on money laundering and counterterrorism financing would apply 

to cryptocurrencies.98 

It also appears that the Bahamas might act to both bring cryptocurrency exchanges within the remit 

of the Central Bank of the Bahamas and introduce a “digital version of the Bahamian dollar.”99

Barbados 

Barbados does not appear to have any laws that specifically regulate cryptocurrencies. In 2015, 

the Central Bank of Barbados (CBB) issued a paper that discussed whether cryptocurrencies 

should be included in its portfolio of international reserves, but it does not appear to have acted to 

do this.100 

Barbados is home to Bitt Inc., the financial technology startup that has signed a Memorandum of 

Understanding with the ECCB to launch a pilot of blockchain technology, which will enable eight 

Caribbean countries to test the use of cryptocurrencies alongside their national currencies (see 

ECCB discussion, supra). While Barbados is not a party to this Memorandum of Understanding, 

there have been reports that Bitt Inc. is to create a digital Barbadian dollar that would be tied to 

the value of the country’s physical currency, but the government has not yet issued a statement on 

this subject.101 

 

95 Press Release, Bahamas Information Services, Small Business License Fees in the GB Port Area May Soon 

Change (Jan. 26, 2018), https://www.bahamas.gov.bs/wps/portal/public/gov/government/news/ (search by title, then 

select from list), archived at https://perma.cc/7EHL-XSAQ. 

96 Proceeds of Crime Bill 2018, https://www.bahamas.gov.bs/wps/wcm/connect/200c0a64-83a6-4f69-b115-

405396e05b8e/DOC16_39_1302_02_18.pdf?MOD=AJPERES, archived at https://perma.cc/NW5Z-ZMLG. 

97 Id. § 2. 

98 Id., Objects and Reasons. 

99 Remarks by John Rolle, supra note 92. 

100 Winston Moore & Jeremy Stephen, Should Cryptocurrencies be Included in Portfolio of International Reserves 

Held by the Central Bank of Barbados? (CBB Working Paper No. WP/15/16), http://www.centralbank.org.bb/ 

Portals/0/Files/Working_Papers/2015/Should Cryptocurrencies be included in the Portfolio of International Reserves 

held by the Central Bank of Barbados.pdf (last visited Mar. 26, 2018), archived at https://perma.cc/VGF3-T75Q. 

101 Noelle Acheson, How a Tiny Island Could Give Cryptocurrency a Big Boost, COINDESK (May 30, 2017), 

https://www.coindesk.com/how-a-tiny-island-could-give-cryptocurrency-a-big-boost/, archived at 

https://perma.cc/HB7Y-H4B8. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 24 

British Virgin Islands 

The British Virgin Islands has yet to issue any guidance that applies to cryptocurrency and does 

not appear to have legislation or regulations that specifically apply to this area,102 with the 

government instead appearing to opt for a wait-and-see approach.103 One commentator has noted 

that its existing laws appeal to companies that wish to do initial coin offerings (ICOs), and a 

number of companies have already registered under the country’s company laws and then 

conducted ICOs.104

Cayman Islands 

The Cayman Islands appear to have a fairly flexible regulatory environment for cryptocurrencies 

and blockchain technologies. While there appears to be no specific legislation geared towards 

regulating cryptocurrencies, there are laws that in certain circumstances may be applicable. These 

include the Securities Investment Business Law (2015 Revision),105 Anti-Money Laundering 

(AML) Laws and regulations,106 Money Services Law (2010 Revision),107 and Electronic 

Transactions Law (2003 Revision). Lawyers Chris Humphries and James Smith predict that 

more-specific legislation will eventually be created although, for the time being, the 

regulators and lawmakers in the Cayman Islands are keen to avoid rushing through any 

legislation before the potential benefits and pitfalls of blockchain technology, 

cryptocurrencies and ICOs are properly understood.108

On January 29, 2018, Cayman Islands’ Premier, Alden McLaughlin, reportedly spoke at a leading 

blockchain conference called “d10e” where he encouraged blockchain companies to establish 

themselves at Cayman Enterprise City, a “special economic zone that caters to tech-related 

 

102 Home, GOVERNMENT OF THE VIRGIN ISLANDS, http://www.bvi.gov.vg/ (last visited Mar. 26, 2018), archived at

https://perma.cc/WTT9-7E3M. 

103 Michael Killourhy, Crypto-currency and ICOs in the British Virgin Islands, OGIER (Feb. 2, 2018), 

http://www.ogier.com/publications/crypto-currency-and-icos-in-the-british-virgin-islands?utm_source=Mondaq 

&utm_medium=syndication&utm_campaign=View-Original, archived at https://perma.cc/RA4T-T2SV. 

104 Id. 

105 Securities Investment Business Law (2015 Revision), EXTRAORDINARY GAZETTE No. 53 (July 17, 2015), 

https://www.cima.ky/upimages/commonfiles/1499349906SecuritiesInvestmentBusinessLaw2015Revision.pdf, 

archived at https://perma.cc/356F-5DBD. 

106 Proceeds of Crime Law (2017 Revision), Anti-Money Laundering Regulations, 2017, EXTRAORDINARY GAZETTE

No. 79 (Sept. 20, 2017), https://www.cima.ky/upimages/commonfiles/1507843083Anti-MoneyLaudering 

Regulations2017.pdf, archived at https://perma.cc/F5MN-XM5K. 

107 Money Services Law (2010 Revision), EXTRAORDINARY GAZETTE No. 23 (Nov. 8, 2010), https://www.cima.ky/ 

upimages/commonfiles/1499348940MoneyServicesLaw2010Revision.pdf, archived at https://perma.cc/Q7UCDB5G. 

108 Chris A. Humphries & James Smith, Stuarts Walker Hersant Humphries, Cayman Islands: Initial Coin Offerings 

(ICO) in The Cayman Islands, MONDAQ (Feb. 19, 2018), http://www.mondaq.com/caymanislands/x/667952/ 

Commodities+Derivatives+Stock+Exchanges/Initial+Coin+Offerings+ICO+In+The+Cayman+Islands, archived at

https://perma.cc/5XPY-LXGQ. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 25 

entities.”109 Cayman Enterprise City CEO Charlie Kirkconnell stated at the conference that some 

fifty blockchain companies have established or are in the process of establishing themselves in 

the zone.110

Dominica 

On March 14, 2015, Dominica was reportedly scheduled to host an event, officially titled “The Bit 

Drop,” which was meant to put bitcoins into the hands of Dominica’s entire population, reported 

to be 70,000 people, but the project was cancelled.111 According to Dominica News Online, 

organizers indicated that they did not receive enough support from the government on the event, 

and an election cycle may have “complicated matters.”112

More recently, Dominica signed up to participate in the ECCB pilot, which will test the use of 

cryptocurrencies alongside the country’s national currency (see ECCB discussion, supra). 

Dominican Republic 

The Dominican Central Bank has indicated that virtual currencies are not backed by the Bank and 

are not legal currency under Dominican law.113 Thus, financial institutions authorized to operate 

in the country may not engage in transactions that use these currencies, and individuals who 

acquire them or accept them as payment do so at their own risk.114 

Grenada 

Grenada does not have any specific legislation to regulate cryptocurrencies. It has, however, signed 

up to participate in the ECCB pilot, which will test the use of cryptocurrencies alongside the 

country’s national currency (see ECCB discussion, supra). 

Jamaica 

In a press release issued on February 5, 2018, the Bank of Jamaica warned the public to “exercise 

caution in the use of virtual currencies (cryptocurrencies) given the associated risks and the 

absence of appropriate governance and consumer protection arrangements,” according to the 

 

109 Ken Silva, Cayman Courting Blockchain Companies, CAYMAN COMPASS (Jan. 30, 2018), https://www.cayman 

compass.com/2018/01/30/cayman-courting-blockchain-companies/, archived at https://perma.cc/T79T-TCYH. 

110 Id. 

111 Pete Rizzo, Plan to Distribute Bitcoin in Dominica Shelved, COIN DESK (Feb. 10, 2015), https://www.coindesk. 

com/plan-distribute-bitcoin-dominica-shelved/, archived at https://perma.cc/ZV5K-6NQP. 

112 Bitcoin Event in Dominica Cancelled, DOMINICA NEWS ONLINE (Feb. 11, 2015), http://dominicanewsonline. 

com/news/homepage/news/business/bitcoin-event-in-dominica-cancelled/, archived at https://perma.cc/6T86-CC65. 

113 Banco Central de la Republica Dominicana, Comunicado (June 29, 2017), https://www.bancentral.gov.do/ 

noticias/avisos/archivos/aviso20170628.pdf, archived at https://perma.cc/C2Y6-FD4G. 

114 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 26 

Jamaica Observer.

115 While noting the advantages of virtual currencies in potentially promoting 

“financial inclusion,” the Bank warned that 

. . . the following risks need to be taken into consideration: 

1. Virtual currencies are not legal tender in Jamaica. 

2. Bank of Jamaica neither issues nor backs virtual currencies. 

3. Virtual currencies are not foreign currencies as there is no monetary authority that 

issues or backs them. 

4. Bank of Jamaica does not regulate or supervise virtual currencies. 

5. Bank of Jamaica has not authorised any entity to operate a virtual currency platform. 

6. Transactions in virtual currencies, such as bitcoin, are susceptible to abuse by criminals 

and may facilitate money laundering and the financing of terrorism.116

Montserrat 

Montserrat does not have any specific legislation to regulate cryptocurrencies. It has, however, has 

signed up to participate in the ECCB pilot, which will test the use of cryptocurrencies alongside 

its national currency (see ECCB discussion, supra). 

Saint Kitts and Nevis 

Saint Kitts and Nevis does not have specific legislation to regulate cryptocurrencies. However, it 

has signed up to participate in the ECCB pilot, which will test the use of cryptocurrencies alongside 

the country’s national currency (see ECCB discussion, supra). 

While the country has no specific legislation on the subject, the Saint Kitts and Nevis Citizenship 

by Investment Unit (CIU) reportedly issued a statement in June 2014 that it would not accept 

digital currency as a means by which applicants for citizenship through the Citizenship by 

Investment Program could participate in the program. “We further emphasize that we do not accept 

Bitcoins, have never accepted Bitcoins, and will not accept Bitcoins,” the CIU was quoted 

as saying.117

Saint Lucia 

Saint Lucia does not have specific legislation to regulate cryptocurrencies. However, it has signed 

up to participate in the ECCB pilot, which will test the use of cryptocurrencies alongside the 

country’s national currency (see ECCB discussion, supra). 

 

115 BOJ Warns against Use of Virtual Currencies for Economic Transactions, JAMAICA OBSERVER (Feb. 5, 2018), 

http://www.jamaicaobserver.com/latestnews/BOJ_warns_against_use_of_virtual_currencies_for_economic_transact

ions_?profile=1228, archived at https://perma.cc/2NEA-LAHE. 

116 Id. 

117 Shiva Bissessar, ECLAC, Opportunities and Risks Associated with the Advent of Digital Currency in the 

Caribbean, ECLAC– STUDIES AND PERSPECTIVES SERIES– THE CARIBBEAN No. 46, at 32 (Jan. 2016), 

http://repositorio.cepal.org/bitstream/handle/11362/39860/S1501234_en.pdf;sequence=1, archived at

https://perma.cc/F69E-MRTB. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 27 

Saint Vincent and the Grenadines 

Saint Vincent and the Grenadines does not have any specific legislation to regulate 

cryptocurrencies. It has, however, signed up to participate in the ECCB pilot, which will test the 

use of cryptocurrencies alongside its current national currency (see ECCB discussion, supra). 

Trinidad and Tobago 

A February 24, 2018, news article reported that the Trinidad and Tobago Finance Ministry has 

distanced itself from a recent digital currency offering, and in clarifying its position emphasized 

in a statement that “[t]he Commission, has not as of this date approved any Initial Coin 

Offering.”118 According to the article, the Commission’s statement also identified the 

following risks and urged the public to exercise caution: 

1) Heightened potential for fraud – the fact that the products and those selling them may in 

some cases not be subject to regulation, [may] expose the investors to fraud; 

 

2) Cross-border distribution risks – the issuer may be operating the ICO from outside of 

the investor’s jurisdiction, therefore, following the money in the event of a collapse of the 

ICO as well as recovering invested funds, may prove extremely difficult [for the investor]; 

 

3) Information asymmetry – investors may not be able to understand the risks, costs and 

expired returns . . . arising from their investment; 

 

4) Liquidity risks – In some jurisdictions, cryptocurrency exchanges may also be 

unregulated and operate without oversight. Thus leaving investors vulnerable to dramatic 

price changes and possibility that they may not be able to exit their holdings 

(funds invested) . . . . 

Based on the foregoing, the Ministry of Finance advises members of the public to exercise 

caution when engaging in any form of investment and when in doubt, seek the advice of 

the Regulatory Bodies – The Securities and Exchange Commission and/or the Central Bank 

of Trinidad and Tobago.119 

 

 

118 Laura Dowrich-Phillips, Finance Ministry Distances Itself from Digital Currency Offering, LOOP (Feb. 24, 

2018), http://www.looptt.com/content/finance-ministry-distances-itself-digital-currency-offering, archived at

https://perma.cc/86BF-FSK8. 

119 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 28 

Europe 

I. EU Member States 

European Union 

On July 5, 2016, the European Commission presented a legislative proposal to amend the Fourth 

Anti-Money Laundering Directive (AMLD).120 It suggested, inter alia, bringing custodian wallet 

providers and virtual currency exchange platforms within the scope of the AMLD, meaning they 

would be obligated to fulfill due diligence requirements and have in place policies and procedures 

to detect, prevent, and report money laundering and terrorist financing. The proposal contains a 

definition of virtual currencies, which are described as “a digital representation of value that is 

neither issued by a central bank or a public authority, nor necessarily attached to a fiat currency, 

but is accepted by natural or legal persons as a means of payment and can be transferred, stored or 

traded electronically.”121 On January 29, 2018, the text agreed at the interinstitutional negotiations 

of the European Parliament and the Council was approved in committee. The European Parliament 

adopted the text in plenary session on April 19, 2018.122 The updated Directive will enter into force 

three days after its publication in the Official Journal of the European Union. 

Furthermore, on March 8, 2018, the European Commission presented an Action Plan on how to 

take advantage of the opportunities presented by technology-enabled innovation in financial 

services (FinTech), like blockchain, artificial intelligence, and cloud services.123 The FinTech 

Action Plan includes the recently launched EU Blockchain Observatory and Forum, which will 

report on the challenges and opportunities of crypto assets later in 2018 and is working on a 

comprehensive strategy on distributed ledger technology and blockchain addressing all sectors of 

the economy.124

On October 22, 2015, the European Court of Justice (ECJ) held in its decision Hedqvist that 

transactions to exchange a traditional currency for bitcoin or other virtual currencies and vice versa 

 

120 Proposal for a Directive of the European Parliament and of the Council Amending Directive (EU) 2015/849 on 

the Prevention of the Use of the Financial System for the Purposes of Money Laundering or Terrorist Financing and 

Amending Directive 2009/101/EC, COM (2016) 450 final (July 5, 2016), https://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:52016PC0450&from=EN, archived at http://perma.cc/D4NP-V5UA. 

121 Id. at 30. 

122 Press Release, European Parliament, Anti-money Laundering: MEPs Vote to Shed Light on the True Owners of 

Companies (Apr. 19, 2018), http://www.europarl.europa.eu/news/en/press-room/20180411IPR01527/anti-moneylaundering-meps-vote-to-shed-light-on-the-true-owners-of-companies, archived at https://perma.cc/ZZQ4-HQ36. 

123 Communication From the Commission to the European Parliament, the Council, the European Central Bank, the 

European Economic and Social Committee and the Committee of the Regions. FinTech Action Plan: For a More 

Competitive and Innovative European Financial Sector, COM (2018) 109 final (Mar. 8, 2018), http://eurlex.europa.eu/resource.html?uri=cellar:6793c578-22e6-11e8-ac73-01aa75ed71a1.0001.02/DOC_1&format=PDF, 

archived at http://perma.cc/F7NP-YPCP. 

124 Id.; Press Release, European Commission, European Commission Launches the EU Blockchain Observatory and 

Forum (Feb. 1, 2018), http://europa.eu/rapid/press-release_IP-18-521_en.htm, archived at http://perma.cc/Q4GDLX6P. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 29 

constitute the supply of services for consideration, but fall under the exemption from value-addedtax (VAT).125 Buying or selling bitcoin is therefore exempt from VAT in all EU Member States. 

On February 12, 2018, the European Supervisory Authorities for securities (ESMA), banking 

(EBA), and insurance and pensions (EIOPA) jointly issued a warning to consumers regarding 

virtual currencies, stating that they are “highly risky and unregulated products and are unsuitable 

as investment, savings or retirement planning products.”126 The warning complements the earlier 

two statements by ESMA on initial coin offerings (ICOs) in November 2017127 and a warning to 

consumers and two opinions on virtual currencies by EBA in December 2013, July 2014, and 

August 2016, respectively.128 EBA welcomes the decision of the European Commission to bring 

custodian wallet providers and virtual currency exchange platforms within the scope of the Fourth 

AMLD and not to extend the EU Payment Services Directive 2015/2366 to virtual currency 

transactions for the time being.129 EBA suggests a separate regulatory regime to mitigate all the 

risks arising from virtual currencies.130

The President of the European Central Bank (ECB), Mario Draghi, warned that bitcoin and other 

digital currencies are “very risky assets” due to their high volatility and speculative prices.131 He 

stated that “digital currencies are not subject to a specific supervisory approach,” but that “[w]ork 

is under way in the Single Supervisory Mechanism[132] to identify potential prudential risks that 

 

125 Case C-264/14, Skatteverket v. David Hedqvist, ECLI:EU:C:2015:718, http://curia.europa.eu/juris/celex.jsf? 

celex=62014CJ0264&lang1=en&type=TXT&ancre, archived at http://perma.cc/7Q6Q-MM9V. 

126 European Supervisory Authorities, WARNING. ESMA, EBA and EIOPA Warn Consumers on the Risks of 

Virtual Currencies (Feb. 12, 2018), https://www.eba.europa.eu/documents/10180/2139750/Joint+ESAs+ 

Warning+on+Virtual+Currencies.pdf, archived at http://perma.cc/EAH5-XTZE. 

127 ESMA, STATEMENT. ESMA Alerts Firms Involved in Initial Coin Offerings (ICOs) to the Need to Meet 

Relevant Regulatory Requirements (Nov. 2017), https://www.esma.europa.eu/sites/default/files/library/esma50-157-

828_ico_statement_firms.pdf, archived at http://perma.cc/5PL8-WZ4K; ESMA, STATEMENT. ESMA Alerts 

Investors to the High Risks of Initial Coin Offerings (ICOs), Nov. 2017, https://www.esma.europa.eu/sites/ 

default/files/library/esma50-157-829_ico_statement_investors.pdf, archived at http://perma.cc/3KXT-FNFD. 

128 EBA, Warning to Consumers on Virtual Currencies (Dec. 2013), https://www.eba.europa.eu/documents/10180/ 

598344/EBA+Warning+on+Virtual+Currencies.pdf, archived at http://perma.cc/QL4M-ZLXW; EBA, EBA 

Opinion on ‘Virtual Currencies’, July 4, 2014, http://www.eba.europa.eu/documents/10180/657547/EBA-Op-2014-

08+Opinion+on+Virtual+Currencies.pdf, archived at http://perma.cc/9P9W-A3KT; EBA, Opinion of the European 

Banking Authority on the EU Commission’s Proposal to Bring Virtual Currencies into the Scope of Directive (EU) 

2015/849 (4AMLD), Aug. 11, 2016, https://www.eba.europa.eu/documents/10180/1547217/EBA+Opinion+on+ 

the+Commission%E2%80%99s+proposal+to+bring+virtual+currency+entities+into+the+scope+of+4AMLD, 

archived at http://perma.cc/SF65-HA37. 

129 EBA, Opinion of the European Banking Authority on the EU Commission’s Proposal to Bring Virtual Currencies 

into the Scope of Directive (EU) 2015/849 (4AMLD), supra note 128, nos. 8 & 16. 

130 Id. no. 19. 

131 Mario Draghi, President of the ECB, Introductory Statement and Closing Remarks at the European Parliament 

Plenary Debate on the ECB Annual Report for 2016 (Feb. 5, 2018), https://www.ecb.europa.eu/press/key/date/ 

2018/html/ecb.sp180205.en.html, archived at http://perma.cc/M6WX-T3RR. 

132 The Single Supervisory Mechanism refers to the system of banking supervision that comprises the ECB and the 

national supervisory authorities of the participating countries, see Single Supervisory Mechanism, ECB, 

https://www.bankingsupervision.europa.eu/about/thessm/html/index.en.html (last visited Mar. 20, 2018), archived at

http://perma.cc/M2ST-SE3H. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 30 

these digital assets could pose to supervised institutions.”133 In addition, in December 2016, the 

ECB and the Bank of Japan (BOJ) launched a joint research project named “Stella,” which looks 

at the possible use of distributed ledger technology for financial market infrastructures.134

Austria 

The Austrian Ministry of Finance (Bundesministerium der Finanzen, BMF) does not qualify 

cryptocurrencies as legal tender or as financial instruments. Instead, it classifies them as other 

(intangible) commodities.135 It stated that cryptocurrencies are treated like other business assets 

for income tax purposes. According to the Ministry, “mining” generally is a commercial activity 

and is therefore treated like any other production of goods. The same applies to the operation of 

online trading platforms and cryptocurrency ATMs.136

With regard to VAT, the BMF follows the jurisprudence of the ECJ in Hedqvist.

137 Transactions 

to exchange a traditional currency for bitcoin or other virtual currencies and vice versa are 

therefore exempt from VAT. Bitcoin or other virtual currencies that are used as a means of 

payment for services or goods are treated the same as traditional means of payment. Mining is not 

subject to VAT, because there is no identifiable recipient.138

The Austrian National Bank (Oesterreichische Nationalbank, OeNB) does not qualify bitcoin as a 

currency, because it does not fulfill the typical functions of money due to a strict limitation on 

quantity and no stabilizing central authority.139 Bitcoin is currently not covered by the E-Money 

Act or the Payment Services Act.140 Ewald Nowotny, governor of the OeNB, has pointed out the 

risks of cryptocurrencies.141 He stated that “[b]itcoin & Co. . . . are highly speculative investments 

which entail high risks for individuals.” He therefore welcomed the initiative of the Federal 

Minister of Finance, Hartwig Löger, to establish a Fintech Regulation Council to regulate 

cryptocurrencies. In addition, he voiced support for the amendment of the EU Money Laundering 

 

133 Draghi, supra note 131131. 

134 BOJ/ECB Joint Research Project on Distributed Ledger Technology, ECB & BOJ (Sept. 6, 2017), 

https://www.ecb.europa.eu/paym/intro/news/shared/20170906_stella_report_leaflet.pdf, archived at

http://perma.cc/27QZ-ST83. 

135 Steuerliche Behandlung von Kryptowährungen (virtuelle Währungen) [Tax Treatment of Cryptocurrencies 

(Virtual Currencies)], BMF, https://www.bmf.gv.at/steuern/kryptowaehrung_Besteuerung.html (last updated 

July 25, 2017), archived at http://perma.cc/BU4Z-3BFY. 

136 Id.

137 Case C-264/14, Skatteverket v. David Hedqvist, ECLI:EU:C:2015:718, http://curia.europa.eu/juris/celex.jsf? 

celex=62014CJ0264&lang1=en&type=TXT&ancre, archived at http://perma.cc/7Q6Q-MM9V. 

138 Steuerliche Behandlung von Kryptowährungen (virtuelle Währungen), supra note 135. 

139 Sind virtuelle Währungen wie Bitcoin eine Alternative zu klassischen Währungen wie dem Euro? [Are Virtual 

Currencies Like Bitcoin an Alternative to Traditional Currencies Like the Euro?], OeNB, https://www.oenb. 

at/FAQ/sonstiges.html (last visited Mar. 20, 2018), archived at http://perma.cc/AN2L-WHS5. 

140 Id.

141 Press Release, OeNB begrüßt Regulierungsinitiative von BM Löger zu Kryptowährungen [OeNB Welcomes 

Regulation Initiative of Federal Minister Löger on Cryptocurrencies], OeNB (Mar. 2, 2018), https://www.oenb.at/ 

Presse/20180302.html, archived at https://www.oenb.at/Presse/20180302.html. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 31 

Directives, as well as the proposal of the Austrian Ministry of Finance to require prospectuses for 

ICOs and introduce licensing by the Financial Market Authority (FMA).142 Finally he added that 

any regulatory initiative should be complemented by improving the financial education of 

the public. 

Like the OeNB, the FMA has warned investors of the risks of cryptocurrencies.143 It stated that 

virtual currencies like bitcoin and trading platforms are neither regulated nor supervised by the 

FMA. The FMA does not qualify them as legal tender payment instruments or as tradable foreign 

currencies. However, it pointed out that certain business models might require authorization from 

the FMA.144 The FMA decides on a case-by-case basis whether an ICO requires authorization.145

Belgium

Cryptocurrencies remain unregulated in Belgium, and there appear to have been very few official 

pronouncements on the subject. 

In January 2014, the Belgian National Bank (Banque nationale de Belgique, BNB) and the 

Financial Services and Markets Authority (Autorité des services et marchés financiers, FSMA) 

issued a joint press release warning consumers about the risks of cryptocurrencies.146 Their main 

points were that cryptocurrencies are not legal tender, and that they are completely unregulated 

and do not fall within the purview of any monitoring or regulatory authority.147 More recently, in 

December 2017, the governor of the BNB, Jan Smets, repeated in an interview that bitcoin is not 

an actual currency, as it is not guaranteed by a central bank or a government as a means 

of payment.148

The Belgian Finance Minister, in response to a question by a Belgian senator, stated in July 2013 

that while bitcoin seems to be somewhat problematic as a tool for money laundering and other 

 

142 Id. 

143 Bitcoins, FMA, https://www.fma.gv.at/en/fma-thematic-focuses/bitcoins/ (last visited Mar. 20, 2018), archived at 

http://perma.cc/C3QF-N7NU. FMA, Focus on Virtual Currencies. Bitcoin, Ethereum, Ripple & Co from the 

Perspective of Investor Protection, https://www.fma.gv.at/download.php?d=3090 (last visited Apr. 5, 2018), 

archived at http://perma.cc/K7WF-HBAY. 

144 Id. 

145 Focus on Initial Coin Offerings, FMA, https://www.fma.gv.at/en/fma-thematic-focuses/fma-focus-on-initialcoin-offerings/ (last visited Mar. 20, 2018), archived at http://perma.cc/3HT8-HES7; FinTech Navigator, FMA, 

https://www.fma.gv.at/en/cross-sectoral-topics/fintech/fintech-navigator/ (last visited Mar. 20, 2018), archived at

http://perma.cc/9MVT-QA9M. 

146 Attention à l’argent virtuel, comme Bitcoin [Beware of Virtual Currencies, Such as Bitcoin], BNB, FSMA (Jan. 

15, 2014), https://www.nbb.be/fr/articles/attention-largent-virtuel-comme-bitcoin, archived at

https://perma.cc/H457-2T49. 

147 Id. 

148 Joseph Young, Belgium Central Bank Governor: Bitcoin Is Not a Threat Because Its Not “Stable,” CNN (Dec. 

23, 2017), https://www.ccn.com/belgium-central-bank-governor-bitcoin-is-not-a-threat-because-its-not-stable/, 

archived at https://perma.cc/G6Y8-CC4N. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 32 

illegal activities, such problems should not be overstated.149 He also said that, based on studies by 

the BNB and the European Central Bank, bitcoin does not present any significant risks to price 

stability, to the financial system in general, or to its individual users. Finally, in this same 

statement, the Minister of Finance indicated that government intervention with regard to bitcoin 

does not appear necessary given how small the bitcoin market was at the time.150

In April 2017, Belgian Minister of Justice Koen Geens announced that he plans to establish a legal 

framework for cryptocurrencies.151 One of the Minister’s main objectives is to set up a mechanism 

to verify the conversion and exchange rates of cryptocurrencies, similarly to what exists for 

traditional financial circuits.152 He also would like to better monitor those who promise unrealistic 

returns and conversion rates, as well as find ways around the anonymity of cryptocurrency 

payments so as to curtail their use as vehicles for money laundering. Additionally, Geens would 

like to establish a mechanism for the courts to properly evaluate cryptocurrencies when they are 

seized as part of criminal investigations.153 This plan seems to be mostly aspirational, and no 

action appears to have been taken in furtherance of it so far. 

Bulgaria 

On February 14, 2018, the National Bank of Bulgaria announced that it joins the position of the 

European supervisory authorities on the risks inherent in buying virtual currencies. The Bank noted 

that such currencies show extreme price volatility and signs of a pricing bubble.154 According to 

the Bank, consumers buying virtual currencies should be aware that there is a high risk that they 

will lose a large amount, or even all, of the money invested.155 

 

149 Sénat de Belgique [Senate of Belgium], Question écrite n° 5-8723 de Martine Taelman du 16 avril 2013 au 

ministre des Finances [Written Question No. 5-8723 of Martine Taelman of 16 April 2013 to the Minister of 

Finance], July 31, 2013, http://www.senate.be/www/?MIval=/Vragen/SVPrint&LEG=5&NR=8723&LANG=fr, 

archived at https://perma.cc/3YK4-M2WY. 

150 Id. 

151 Comment mieux contrôler le bitcoin? Koen Geens a un plan [How to Better Control Bitcoin? Koen Geens Has a 

Plan], RTBF.BE (Apr. 15, 2017), https://www.rtbf.be/info/economie/detail_comment-mieux-controler-le-bitcoinkoen-geens-a-un-plan?id=9581709&utm_source=dlvr.it&utm_medium=twitter, archived at https://perma.cc/3VNZCA5W. 

152 Id. 

153 Id. 

154 Press Release, National Bank of Bulgaria, European Supervisors Warn Consumers About the Risks of Buying 

Virtual Currencies (Feb. 14, 2018), http://www.bnb.bg/PressOffice/POPressReleases/POPRDate/PR_20180214_BG

(in Bulgarian), archived at https://perma.cc/Z3S7-KCMM. 

155 Bulgaria Central Bank Warns Consumers of Cryptocurrency Risks, REUTERS (Feb. 14, 2018), 

https://www.reuters.com/article/crypto-currency-bulgaria/bulgaria-central-bank-warns-consumers-ofcryptocurrency-risks-idUSL8N1Q45KW, archived at https://perma.cc/YKZ9-9F6R. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 33 

Bulgarian tax authorities reportedly issued rulings in 2014 requiring individuals to pay taxes on 

gains from selling cryptocurrencies, similar to the sale of financial assets.156 

In 2015 a Bulgarian court reportedly concluded that activities associated with buying, selling, and 

paying with cryptocurrencies are not subject to licensing requirements.157

Croatia 

On December 18, 2017, Croatia’s Financial Stability Council warned that individuals investing in 

virtual currencies bear sole responsibility for their losses and should be aware of possible 

taxation.158 It stated that Croatian regulators are not responsible for the oversight of the individuals 

who issue virtual currencies or trade in them. The Council noted that virtual currencies are 

associated with considerable risks, such as those of digital wallet theft and transaction misuse, 

fraud, etc. A similar warning was issued by the National Bank of Croatia on September 22, 2017.159 

Cyprus 

The Central Bank of Cyprus has issued a warning stating that virtual currencies are not legal tender, 

that there are no specific regulatory protection measures to cover losses from their use, and that 

their prices are subject to volatility.

160

Czech Republic 

On February 27, 2018, Mojmír Hampl, the Vice-Governor of the Czech National Bank (CNB) 

made the following statement: 

The fact that cryptocurrencies are . . . commodities [rather than currencies] also shapes our 

light-touch, liberal approach to regulation at the CNB. We do not want to ban them and we 

are not hindering their development, but we are also not actively helping or promoting 

them and we are not protecting them or the customers that use them. Like in a casino, 

everyone investing in a cryptocurrency must be prepared to lose the entire bet. And central 

banks do not regulate casino visits.161

 

156 Marin Marinov, Legal and Tax Treatment of Bitcoin in Bulgaria, RUSKOV & COLLEAGUES (Nov. 20, 2017), 

https://www.ruskov-law.eu/bulgaria/article/legal-tax-treatment-bitcoin.html, archived at https://perma.cc/ZA9H4RGF. 

157 Id. 

158 Press Release, Financial Stability Council, 9th Session of the Financial Stability Council (Dec. 18, 2017), 

http://www.vfs.hr/dokumenti/priopcenja/2017/e-priopcenje-18122017.pdf, archived at https://perma.cc/29MV2XP2. 

159 Press Release, National Bank of Croatia, Possible Risks Associated with Investing in Virtual Currency (Sept. 22, 

2017), https://www.hnb.hr/-/moguci-rizici-povezani-s-ulaganjima-u-virtualne-valute (in Croatian), archived at

https://perma.cc/L2NC-NPZ3. 

160 Press Release, Central Bank of Cyprus, Attention to the Risks Associated With Virtual Currencies (Feb. 7, 2014), 

https://www.centralbank.cy/en//announcements/07022014, archived at https://perma.cc/3AP9-9DKC. 

161 Majomir Hampl, Czech National Bank, A Digital Currency Useful for Central Banks?, Address before the 7th 

BBVA Seminar for Public Sector Investors and Issuers, Bilbao (Feb. 27, 2018), https://www.cnb.cz/en/ 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 34 

Amendments have been made to the Czech Republic’s anti-money laundering legislation, making 

it also applicable to persons providing services related to virtual currencies—i.e., those who buy, 

sell, store, manage, or mediate the purchase or sale of virtual currencies or provide other services 

related to such currencies as a business.162

Denmark

Denmark has no laws specifically addressing cryptocurrencies, and no regulatory proposals on 

cryptocurrencies are pending in the Danish Parliament. However, government agencies have 

issued a number of statements on cryptocurrencies.163 

Denmark’s Finanstilsynet (Financial Supervisory Authority) issued a statement in 2013 rejecting 

the bitcoin as a currency and stating that it will not regulate bitcoin use.164 In its statement the 

Financial Supervisory Authority emphasized that it has evaluated the use of the bitcoin system and 

found that it does not fall under any of the financial services categories, including the issuing of 

electronic money, payment for services, currency exchanges, or the issuing of mortgages; thus, 

bitcoin activity is not covered under current financial regulations.165 In 2017 the Financial 

Supervisory Authority released a report on ICOs (Initial Coin Offerings) in which it stated that 

cryptocurrencies that are solely used as a means of payment continue to not be regulated by the 

Authority.166 However, ICOs may be conducted in such a way as to fall under the purview of the 

Authority167 and thus would be subject to Danish regulation—for example, “legislation on 

alternative investment funds, prospectuses, and money laundering.”168

The Danish Central Bank has been critical of cryptocurrencies. In 2014, it issued an initial 

statement declaring that bitcoin is not a currency.169 According to the statement, “[b]itcoin does 

not have any real trading value compared to gold and silver, and thus is more similar to glass 

 

public/media_service/conferences/speeches/hampl_20180227_bbva.html, archived at https://perma.cc/N97ZNQCW. 

162 Law No. 368/2016 Coll., Nov. 14, 2016, SBIRKA ZAKONU No. 147/2016, https://www.zakonyprolidi.cz/cs/2016-

368 (in Czech), archived at https://perma.cc/MFX9-42H2. 

163 See Elin Hofverberg, Denmark, in LAW LIBRARY OF CONGRESS, REGULATION OF BITCOIN IN SELECTED 

JURISDICTIONS (Jan. 2014), https://www.loc.gov/law/help/bitcoin-survey/regulation-of-bitcoin.pdf, archived at

https://perma.cc/Z7EQ-L988. 

164 Press Release, Finanstilsynet, Advarsel mod virtuelle valutaer (bitcoin m.fl.) [Warnings Regarding Digital 

Currencies (Bitcoins etc.)] (Dec. 17, 2013), https://www.finanstilsynet.dk/da/Nyheder-og-Presse/Presse 

meddelelser/Arkiv/Presse-2013/Advarsel-mod-virtuelle-valutaer-bitcom-mfl-2013, archived at

https://perma.cc/UZ2E-G7S7. 

165 Id. 

166 Press Release, Finanstilsynet, Orientering om ICO’er [Orientation on ICOs] (Nov. 13, 2017), https://finanstil 

synet.dk/da/Nyheder-og-Presse/Sektornyt/2017/Orientering-om-ICO, archived at https://perma.cc/3A5Y-W4PS. 

167 Id. 

168 Id. 

169 Press Release, Danish Central Bank [Nationalbanken], Bitcoin er ikke penge [Bitcoin Is Not Money] (Mar. 18, 

2104), http://www.nationalbanken.dk/da/presse/Documents/2014/03/PH_bitcoin.pdf#search=Bitcoin, archived at

https://perma.cc/D3C6-ND34. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 35 

beads.”170 The Danish Central Bank went on to point out that bitcoins are not protected by any 

national laws or guarantees, such as a deposit guarantee.171 Similarly, in a 2014 document the 

Danish Central Bank discussed virtual currencies, determining that virtual currencies are not 

regulated and therefore associated with high risks to consumers.172 In 2017 the Director of the 

Danish Central Bank issued warnings against the use of bitcoin.173 His critique of cryptocurrencies 

was reiterated in 2018.174 In addition, the Danish Central Bank has made it clear that it is not in 

favor of the creation of an official Danish e-currency (issued by the Central Bank), unlike 

neighboring Sweden.175

SKAT (the Danish Tax Authority) has issued a number of statements on virtual and 

cryptocurrencies. For example in 2014 it published a binding reply (a response to a public question 

from a taxpayer that is binding on the interpretation of the Tax Authority) in which it declared that 

an invoice amount cannot be issued in bitcoins, but must be issued in Danish kroner or another 

recognized currency.176 The Authority went on to state that any bitcoin losses cannot be deducted 

as a cost of doing business when bitcoins are used as a means of payment.177 In 2016 the Authority 

discussed cryptocurrencies in relation to value-added tax (VAT) and found that cryptocurrencies 

are exempt from VAT.178 The determination is consistent with the decision of the Court of Justice 

of the European Union in 2015.179 The Authority has also commented on how the mining of 

 

170 Id. 

171 Id. 

172 Anders Laursen & Jon Hasling Kyed, Virtuelle Valutaer [Virtual Currencies], in DANMARKS NATIONALBANK 

KVARTALSOVERSIGT, 1. KVARTAL, 2014 [DENMARK NATIONAL BANK QUARTERLY BULLETIN, Q1, 2014] at 85, 

http://www.nationalbanken.dk/da/publikationer/Documents/2014/03/Virtuelle_KVO1_2014.pdf, archived at

https://perma.cc/8FTD-DPXF. 

173 Stine Jacobsen, Danish Central Bank Head Issues Stark Warning on “Deadly” Bitcoin, REUTERS (Dec. 2017), 

https://in.reuters.com/article/bitcoin-denmark/danish-central-bank-head-issues-stark-warning-on-deadly-bitcoinidINKBN1EC19R, archived at https://perma.cc/QSM3-QGJZ. 

174 LARS ROHDE, DANMARKS NATIONALBANK, BITCOIN AND BLOCKCHAINS: PERSPECTIVES OF THE DANISH CENTRAL 

BANK (Apr. 4, 2018), http://www.nationalbanken.dk/da/presse/taler/Documents/2018/04/LRO_tale_FCCA_ 

040418.pdf#search=bitcoin, archived at https://perma.cc/3AL3-WCW7. 

175 Digitale centralbankpenge giver ikke bedre betalnings-løsninger [Digital Central Bank Currency Does Not Create 

Better Payment Solutions], NYT (Dec. 15, 2017), https://www.nationalbanken.dk/da/publikationer/Documents/ 

2017/12/Nyt - Digitale centralbankpenge giver ikke bedre betalingsløsninger.pdf, archived at

https://perma.cc/C7MK-UMXU; compare Swedish report, infra. 

176 Bitcoins, ikke erhvervsmæssig begrundet, anset for særkilt virksomhed [Bitcoins, Not Commercially Justified, 

Considered Special Activity], SKAT (Apr. 1, 2014), https://www.skat.dk/SKAT.aspx?oId=2156173, archived at

https://perma.cc/6B89-6WQ2. 

177 Id. 

178 Momsfritagelse og lønsumsafgift - Køb og salg af Bitcoins [VAT Exemption and Payroll Taxes – Purchase and 

Sale of Bitcoins], SKAT (Jan. 26, 2016), http://skat.dk/skat.aspx?oid=2225268, archived at https://perma.cc/XZG2-

WB6J. 

179 Case C‐264/14. Skatteverket v. David Hedqvist, 2015 CURIA EUROPA, ECLI:EU:C:2015:718 (Oct. 22, 2015), 

http://curia.europa.eu/juris/document/document.jsf?docid=170305&doclang=EN, archived at

https://perma.cc/LU2G-U6VD. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 36 

bitcoins should be treated from a VAT tax perspective.180 The case involved a Danish person who 

wanted to sell hashing capacity on the electrical grid, an activity that was subject to VAT.181 

The Danish Tax Council in 2018 declared that losses on sales of bitcoins purchased as an 

investment are tax deductible and that profits are subject to income taxation.182 

Estonia 

On November 27, 2017, Estonia enacted amendments to its anti-money laundering legislation183

that define cryptocurrencies (virtual currencies) as value represented in digital form that is digitally 

transferable, preservable, or tradable and that natural persons or legal persons accept as a payment 

instrument, but that is not the legal tender of any country or funds (banknotes or coins, scriptural 

money held by banks, or electronic money). The anti-money laundering legislation now also 

applies to providers of a service for exchanging virtual currency with fiat currency and providers 

of a virtual currency wallet service, which is defined as a service in which keys are generated for 

customers or customers’ encrypted keys are kept, which can then be used for the purpose of 

keeping, storing, and transferring virtual currencies.184 Virtual currency service providers are 

required to have a license.185

Finland 

Finland does not have specific regulations that deal with cryptocurrencies and there is no proposed 

legislation on cryptocurrencies pending in the Finnish Parliament. However, a number of agencies 

have issued advisory statements on how they view cryptocurrencies. 

The Finnish Financial Supervisory Authority issued an advisory in 2017 that cryptocurrencies are 

risk-filled investment alternatives.186 It also noted that, depending on the initial coin offering 

(ICO), there may be regulatory effects of the purchase—for instance, EU rules on alternative 

 

180 Bitcoin mining og tilrådighedsstillelse af datakapacitet - moms og godtgørelse af elafgifter [Bitcoin Mining and 

Supply of Data Capacity – VAT and Payment of Electricity Fees], SKAT (June 27, 2017), http://skat.dk/skat. 

aspx?oid=2249418, archived at https://perma.cc/N772-UTZQ. 

181 Id. 

182 Gevinst og tab ved afståelse af bitcoins [Profit and Loss of Realized Bitcoins], SKM2018.104.SR, Case No. 17-

1369067, SKAT (Feb. 27, 2018), http://skat.dk/skat.aspx?oid=2271294, archived at https://perma.cc/PT9E-BZ3R

(emphasis added). 

183 Rahapesu Ja Terrorismi Rahastamise Tõkestamise Seadus [Money Laundering and Terrorist Financing 

Prevention Act], RIIGI TEATAJA [OFFICIAL GAZETTE] RT I Nov. 17, 2017, § 3, available at https://www.riigiteataja. 

ee/ akt/117112017002 (in Estonian), archived at https://perma.cc/5UVE-RJ4B, English translation available at

https://www.riigiteataja.ee/en/eli/517112017003/consolide, archived at https://perma.cc/TFF7-Z9FU. 

184 Id. § 2. 

185 Id. § 70. 

186 Press Release, Finansinspektionen, Finansinspektionens varning: kryptovalutor och ICO:s (Initial Coin Offering) 

är riskfyllda investeringsobjekt [Financial Supervisory Authority’s Warning: Cryptocurrencies and ICOs Are Risk 

Filled Investment Objects] (Nov. 22, 2017), http://www.finanssivalvonta.fi/se/Publicerat/pressmeddelanden/ 

Pages/17_2017.aspx, archived at https://perma.cc/V3WG-CBAW. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 37 

investment funds.187 In 2017 the Finnish Supervisory Authority also discussed the future of ICOs 

in a blog post.188

The Central Bank of Finland issued a statement in 2014 declaring that cryptocurrencies, especially 

bitcoin, are inherently associated with risks, noting that “[t]he use of Bitcoin is not currently 

supervised or regulated in any way,”189 nor does it not amount to a payment service as defined in 

the Payment Services Act.190 In a 2017 report published by the Central Bank, Central Bank 

affiliates were more positive, reportedly calling bitcoin “revolutionary” and “apparent[ly] 

functio[nal] and useful.”191

The Finnish Tax Authority (Vero Skatt) issued instructions for the income taxation of virtual 

currencies, including bitcoin, in 2013.192 When transferred to another currency, the rules on 

taxation of capital gains apply, the Tax Authority said. When the currency is used as a form of 

payment for goods and services it is treated as a trade and the increase in value that the currency 

might have gained after it was obtained is taxable.193 The sale of bitcoins at a loss in value 

compared to the original purchase price is not deductible under the Finish Income Taxation Act, 

because such a loss in value is not specifically described as deductible in the Act.194 In 2017 the 

Tax Authority issued additional recommendations, stating that the exchange rate is determined at 

the time of realization of the bitcoin (i.e., when it becomes cash), and that cryptocurrency records 

should be kept for six years.195

 

187 Id. 

188 Hanna Heiskanen, Kryptovaluutat ja ICO (Initial Coin Offering) sijoituskohteina, onko kyse kuplasta? 

[Cryptocurrencies and ICOs, Is It a Bubble?], FINANSINSPEKTIONEN (Nov. 22, 2017), https://helda.helsinki.fi/ 

bof/bitstream/handle/123456789/14961/Fiva_blogi_kryptovaluutat.pdf?sequence=1&isAllowed=y, archived at

https://perma.cc/6FZ7-ACTH. 

189 Press Release, Finlands Bank, Bitcoin Involves Risk (Jan. 14, 2014), https://www.suomenpankki.fi/en/mediaand-publications/news/2014/bitcoin-involves-risks/, archived at https://perma.cc/T634-EMZM. 

190 Id. 

191 Gur Huberman et al., Monopoly without a Monopolist: An Economic Analysis of the Bitcoin Payment System 36 

(Bank of Finland Research Discussion Papers 27, Sept. 5, 2017), https://helda.helsinki.fi/bof/bitstream/handle/ 

123456789/14912/BoF_DP_1727.pdf, archived at https://perma.cc/2GAN-W8ZM; see also Rachel Rose O’Leary, 

“Revolutionary”: Finnish Central Bank Paper Heaps Praise of Bitcoin, COINDESK (Sept. 11, 2017), 

https://www.coindesk.com/revolutionary-finland-central-bank-paper-heaps-praises-bitcoin/, archived at 

https://perma.cc/5QD3-PUF3. 

192 Press Release, Vero Skatt, Inkomstbeskattning av virtuella valutor [Income Taxation of Virtual Currencies] (Aug. 

28, 2013), https://www.vero.fi/sv/Detaljerade_skatteanvisningar/anvisningar/48411/inkomstbeskattning_ 

av_virtuella_valuto/, archived at https://perma.cc/JEU5-BKLW. 

193 Id. 

194 Id. 

195 Press Release, Vero, Har du använt virtuella valutor? [Have You Used Virtual Currencies?] (Apr. 10, 2017), 

https://www.vero.fi/sv/skatteforvaltningen/skatteforvaltningen/nyheter/uutiset/2017/har_du_anvant_virtuella_valuto, 

archived at https://perma.cc/ZT5Z-34EL. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 38 

Sales of bitcoins have reportedly resulted in millions in revenue for the Finnish Tax Authority.196

The Tax Authority has monitored both those who trade and those who use cryptocurrencies.197

The Åbo Appeals Court is reported to have found that Finnish Customs may auction off bitcoins 

it has confiscated in relation to drug crimes, and as of February 2018 such bitcoins were estimated 

to be worth €19 million (approximately US$23.5 million).198 The Finnish government is said to 

have issued guidelines on how to store confiscated bitcoins.199

France 

Cryptocurrencies remain largely unregulated in France, with two ordinances on blockchain 

technology being the only legislative action taken so far. However, the French government is 

actively moving towards establishing a regulatory regime. 

A 2016 ordinance included two provisions that allowed the use of blockchain technology for a 

specific type of zero-coupon bond called a “mini-bond” (minibon).200 The main impact of this 

ordinance was to provide the first definition of blockchain in French law, but otherwise these 

provisions only had a very narrow application. Another ordinance, from December 2017, went 

further and will make it possible to use blockchain technology for a broader range of financial 

instruments.201 This ordinance will come into force when the application decree is published, or 

on July 1, 2018, at the latest.202

The French Financial Market Authority (Autorité des marchés financiers, AMF) and Prudential 

Supervisory Authority (Autorité de contrôle prudentiel et de resolution, ACPR) recently issued a 

 

196 Patrik Skön, Skatteförvaltningen: Bitcoin ger miljoner i skatteintäkter [Tax Authority: Bitcoin Results in Millions 

in Tax Revenue], YLE (Sept. 24, 2017), https://svenska.yle.fi/artikel/2017/09/24/skatteforvaltningen-bitcoin-germiljoner-i-skatteintakter, archived at https://perma.cc/2VSH-ZQ3V. 

197 Id. 

198 TT, Finska tullen auktionerar ut bitcoin [Finnish Customs Auctions Off Bitcoins], NYTEKNIK (Feb. 21, 2018), 

https://www.nyteknik.se/digitalisering/finska-tullen-auktionerar-ut-bitcoin-6900140, archived at 

https://perma.cc/GD4Q-B6DA; see also TULLI, FINNISH CUSTOMS ENFORCEMENT 2017, http://tulli.fi/documents/ 

2912305/4898005/Finnish%20Customs%20Enforcement%202017/9f35b47e-6ff0-4a54-af9d-776b270da7aa,

archived at https://perma.cc/CR4C-7XMU. 

199 Daniel Palmer, Finland Mandates Cold Storage, Public Auctions of Seized Bitcoins, COINDESK (Feb. 20, 2018), 

https://www.coindesk.com/finland-releases-new-guidelines-for-storage-of-confiscated-bitcoins/, archived at 

https://perma.cc/GT87-C7EF. 

200 Ordonnance n° 2016-520 du 28 avril 2016 relative aux bons de caisse [Ordinance No. 2016-520 of 28 April 2016 

Regarding Zero Coupon Bonds] art. 2, https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT 

000032465520&categorieLien=id, archived at https://perma.cc/K3UP-AJ9D. 

201 Ordonnance n° 2017-1674 du 8 décembre 2017 relative à l’utilisation d’un dispositif d’enregistrement 

électronique partagé pour la représentation et la transmission de titres financiers [Ordinance No. 2017-1674 of 8 

December 2017 Regarding the Use of a Shared Electronic Registration Method for the Representation and 

Conveyance of Financial Instruments], https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT 

000036171908&categorie Lien=id, archived at https://perma.cc/ESA7-89E6. 

202 Id. art. 8. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 39 

joint notice to investors, warning about the current unregulated nature of cryptocurrencies.203 This 

document notes that bitcoin and other cryptocurrencies are not considered financial instruments 

under French law, and therefore do not fall under the regulatory framework of actual currencies or 

under the AMF’s supervision.204 The AMF and ACPR recognize the potential benefits that 

blockchain technology can hold for companies, but warn that cryptocurrencies are unregulated and 

particularly volatile investments.205 This document is reminiscent of a slightly longer report that 

the French Central Bank (Banque de France) published in December 2013.206 That report 

explained that bitcoin cannot be considered a real currency or means of payment under current 

French law,207 and criticized it as a vehicle for speculation as well as an instrument for money 

laundering and other illegal activities.208 The 2013 report also suggested that the conversion 

between bitcoin and real currencies should be considered a payment service, which therefore could 

only be performed by payment service providers authorized and supervised by the ACPR.209 The 

ACPR acknowledged this position in a 2014 document in which it stated that entities that 

habitually engage in the activity of purchasing or selling cryptocurrencies in exchange for actual 

legal tender must be licensed as payment services providers by the ACPR.210 However, the AMF 

and ACPR’s 2017 joint notice recognizes that “the purchase/sale of and investments in bitcoin 

currently operate outside of any regulated market.”211

In parallel to the independent regulatory institutions mentioned above, the French legislative and 

executive branches are actively investigating how best to regulate cryptocurrencies. To that 

purpose, the National Assembly (Assemblée nationale, one of the two houses of the French 

Parliament) has initiated a fact-finding mission on cryptocurrencies,212 and a separate fact-finding 

mission on “blockchains and other technologies for the certification of ledgers.”213 Additionally, 

 

203 Achats de Bitcoin: l’AMF et l’ACPR mettent en garde les épargnants [Bitcoin Purchases: The AMF and ACPR 

Warn Savers], AMF, ACPR (Dec. 4, 2017), https://acpr.banque-france.fr/sites/default/files/medias/documents/ 

20171204-cp-bitcoin.pdf, archived at https://perma.cc/CM6Q-EGUH. 

204 Id. 

205 Id. 

206 Banque de France, Les dangers liés au développement des monnaies virtuelles: l’exemple du bitcoin [The 

Dangers of the Development of Virtual Currencies: The Bitcoin Example], FOCUS No. 10 (Dec. 5, 2013), 

https://publications. banque-france.fr/sites/default/files/medias/documents/focus-10_2013-12-05_fr.pdf, archived at 

https://perma.cc/K93L-HLAC. 

207 Id. at 1. 

208 Id. at 2–3. 

209 Id. at 6. 

210 ACPR, Position de l’ACPR relative aux opérations sur Bitcoins en France [Position of the ACPR Regarding 

Bitcoin Operations in France] (Jan. 29, 2014), https://acpr.banque-france.fr/sites/default/files/20140101_acpr_ 

position_bitcoin.pdf, archived at https://perma.cc/M6YT-EG6J. 

211 Achats de Bitcoin, supra note 203. 

212 Mission d’information sur les monnaies virtuelles [Information Mission on Cryptocurrencies], ASSEMBLÉE 

NATIONALE [NATIONAL ASSEMBLY], http://www2.assemblee-nationale.fr/15/commissions-permanentes/commissiondes-finances/missions-d-information/monnaies-virtuelles (last visited Mar. 19, 2018), archived at

https://perma.cc/JNU5-4MRG. 

213 Mission d’information commune sur les usages des bloc-chaînes (blockchains) et autres technologies de 

certification de registres [Joint Information Mission on the Uses of Blockchains and Other Technologies for the 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 40 

the Minister of the Economy has recently tasked a former deputy governor of the Banque de France 

with researching how to best regulate cryptocurrencies to “better control their development and to 

prevent their use for tax evasion, money laundering, or the financing of criminal or 

terrorist activities.”214

It is also worth noting that France and Germany have jointly requested that cryptocurrencies be 

discussed by the G-20, so that coordinated initiatives may be taken at the international level.215

Germany 

The German Federal Financial Supervisory Authority (Bundesanstalt für 

Finanzdienstleistungsaufsicht, BaFin) qualifies virtual currencies/cryptocurrencies as units of 

account and therefore financial instruments.216 Undertakings and persons that arrange the 

acquisition of tokens, sell or purchase tokens on a commercial basis, or carry out principal broking 

services in tokens via online trading platforms, among others, are generally required to obtain 

authorization from BaFin in advance.217

In February 2018, the German BaFin published information on the regulatory assessment of ICOs 

and the tokens, coins, and cryptocurrencies they are based on.218 It stated that firms involved in 

ICOs need to assess on a case-by-case basis whether the ICOs qualify as financial instruments 

(transferable securities, units in collective investment undertakings, or investments) or as securities 

and therefore trigger the need to comply with the relevant financial legislation. 

 

Certification of Ledgers], ASSEMBLÉE NATIONALE, http://www2.assemblee-nationale.fr/15/commissions-permanent 

es/commission-des-finances/missions-d-information/chaines-de-blocs/(block)/47252 (last visited Mar. 19, 2018), 

archived at https://perma.cc/3TKA-Y7L7. 

214 Un ancien de la Banque de France chargé d'une mission sur le bitcoin [Former Banque de France Official 

Tasked with a Mission on Bitcoin], AFP / LE POINT (Jan. 15, 2018), http://www.lepoint.fr/economie/un-ancien-dela-banque-de-france-charge-d-une-mission-sur-le-bitcoin-15-01-2018-2186834_28.php, archived at 

https://perma.cc/R6CD-GCV9. 

215 Berlin et Paris veulent mobiliser le G20 sur les cryptomonnaies [Berlin and Paris Want to Mobilize the G20 on 

Cryptocurrencies], REUTERS (Feb. 9, 2018), https://fr.reuters.com/article/technologyNews/idFRKBN1FT19LOFRIN, archived at https://perma.cc/RF3M-ZVZM. 

216 Gesetz über das Kreditwesen [KWG] [Banking Act], Sept. 9, 1998, BUNDESGESETZBLATT [BGBL.] [FEDERAL 

LAW GAZETTE] I at 2776, § 1, para. 11, sentence 1, no. 7, http://www.gesetze-im-internet.de/kredwg/KWG.pdf, 

archived at http://perma.cc/WTA6-DYS7, unofficial English translation available at https://www.bafin.de/Shared 

Docs/Downloads/EN/Aufsichtsrecht/dl_kwg_en.pdf?__blob=publicationFile&v=3 (updated through July 15, 2014), 

archived at http://perma.cc/8M5A-7WYR; Virtual Currency (VC), BAFIN, https://www.bafin.de/EN/Aufsicht/ 

FinTech/VirtualCurrency/virtual_currency_node_en.html (last visited Mar. 16, 2018), archived at 

http://perma.cc/K29E-WRGL. 

217 Banking Act, § 32; Virtual Currency (VC), supra note 216. 

218 BaFin, Hinweisschreiben (WA). Aufsichtsrechtliche Einordnung von sog. Initial Coin Offerings (ICOs) zugrunde 

liegenden Token bzw. Kryptowährungen als Finanzinstrumente im Bereich der Wertpapieraufsicht [Information 

Letter (WA). Regulatory Qualification of Tokens or Cryptocurrencies on Which So-Called Initial Coin Offerings 

(ICOs) are Based as Financial Instruments for Purposes of Securities Regulation], reference no. WA 11-QB 4100-

2017/0010, https://www.bafin.de/SharedDocs/Downloads/DE/Merkblatt/WA/dl_hinweisschreiben_einordnung_ 

ICOs.pdf?__blob=publicationFile&v=2, archived at http://perma.cc/583S-GGV3. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 41 

Also in February 2018, the German Federal Ministry of Finance published guidance on valueadded-tax (VAT) treatment of bitcoin and other virtual currencies. It determined that transactions 

to exchange a traditional currency for bitcoin or other virtual currencies and vice versa constitute 

the taxable supply of other services for consideration, but fall under the exemption from VAT. It 

stated that bitcoin or other virtual currencies that are used simply as a means of payment are treated 

the same as traditional means of payment. Using bitcoin or other virtual currencies for no other 

purpose than as a means of payment is therefore not taxable. This guidance is in line with the 

European Court of Justice (ECJ) decision Hedqvist from October 22, 2015.219 Virtual gaming 

money, meaning in-game currencies, particularly in online games, is not exempt, because it does 

not constitute a means of payment within the meaning of VAT law.220 The Ministry also addressed 

several follow-up questions regarding the taxation of mining, digital wallets, and online 

trading platforms.221

The German Bundesbank stated that bitcoin cannot be qualified as a virtual currency. According 

to Dirk Schrade, Bundesbank expert in the area of payments, bitcoin is neither a virtual currency 

nor digital money, because it does not fulfill the typical functions of a currency, nor is it part of 

the national monetary system. The Bundesbank recommends using the term “crypto token.”222

In an article published in the newspaper Frankfurter Allgemeine Zeitung (FAZ), Carl-Ludwig 

Thiele, a member of the executive board of the German Bundesbank, warned investors in bitcoin 

and other cryptocurrencies to beware of their riskiness, fluctuations in value, costliness, and highenergy-need for mining, among other concerns.223 However, he also pointed out that blockchain 

technology promises great potential for innovation and mentioned a joint project with the German 

stock exchange group (Deutsche Börse Gruppe) that tests the application and performance of 

blockchain technology in the settlement of securities transactions between banks.224

 

219 Bundesministerium der Finanzen [BMF] [Federal Ministry of Finance], BMF-Schreiben. Umsatzsteuerliche 

Behandlung von Bitcoin und anderen sog. virtuellen Währungen; EuGH-Urteil vom 22. Oktober 2015, C-264/14, 

Hedqvist [BMF-Letter. VAT Treatment of Bitcoin and Other So-Called Virtual Currencies; ECJ Decision of 

October, 2015, C-264/14, Hedqvist] (BMF Letter), Feb. 27, 2018, at 1 & 2, http://www.bundesfinanzministerium. 

de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Umsatzsteuer/Umsatzsteuer-Anwendungserlass/2018-02-

27-umsatzsteuerliche-behandlung-von-bitcoin-und-anderen-sog-virtuellen-waehrungen.pdf?__blob=publication 

File&v=1, archived at http://perma.cc/56TQ-9RJJ; Case C-264/14, Skatteverket v. David Hedqvist, 

ECLI:EU:C:2015:718, http://curia.europa.eu/juris/celex.jsf?celex=62014CJ0264&lang1=en&type=TXT&ancre, 

archived at http://perma.cc/7Q6Q-MM9V. 

220 BMF Letter, supra note 219, at 3. 

221 Id. at 2 & 3; Jenny Gesley, Germany: Federal Ministry of Finance Publishes Guidance on VAT Treatment of 

Virtual Currencies, GLOBAL LEGAL MONITOR (Mar. 13, 2018), http://www.loc.gov/law/foreignnews/article/germany-federal-ministry-of-finance-publishes-guidance-on-vat-treatment-of-virtual-currencies/, 

archived at http://perma.cc/2FEA-UJFE. 

222 “Bitcoin Is Not a Virtual Currency,” GERMAN BUNDESBANK (Feb. 20, 2018), https://www.bundesbank.de/ 

Redaktion/EN/Topics/2018/2018_02_19_diskussion_bitcoin.html?https=1, archived at http://perma.cc/K8EKVZJM. 

223 Carl-Ludwig Thiele, Beware Bitcoin, FAZ (Feb. 4, 2018), https://www.bundesbank.de/Redaktion/ 

EN/Standardartikel/Press/Contributions/2018_02_04_thiele_fas.html, archived at http://perma.cc/X9UM-GYPE. 

224 Id.; Press Release, Joint Deutsche Bundesbank and Deutsche Börse Blockchain Prototype (Nov. 28, 2016), 

https://www.bundesbank.de/Redaktion/EN/Pressemitteilungen/BBK/2016/2016_11_28_blockchain_prototype.html?

https=1, archived at http://perma.cc/GD77-79FN. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 42 

Greece 

The Bank of Greece on two occasions has issued announcements adopting the views of European 

supervisory authorities warning consumers of the risks of virtual currencies.225

Hungary 

On December 20, 2016, the National Bank of Hungary warned226 consumers that using virtual 

currencies have many risks as they operate in a legally unregulated virtual system and there are no 

proper rules on liability, guarantee, and compensation that would protect the interests of consumers 

in the event of abuse.227 The Bank had made similar statements in 2014228 and 2015.229 

Ireland 

Ireland does not appear to have any laws that specifically regulate cryptocurrencies.230 The Central 

Bank of Ireland noted in March 2018 that in cases of initial coin offerings (ICOs), if the token 

issued can be deemed a “transferable security,” which is determined on a case-by-case basis, then 

the existing financial services legislation in Ireland will apply to it.231 The Central Bank of Ireland 

also stated, 

 

225 Bank of Greece, Ενημέρωση για τη χρήση εικονικών νομισμάτων [Information on the Use of Virtual Currencies] 

(Feb. 11, 2014), https://www.bankofgreece.gr/Pages/el/Bank/News/Announcements/DispItem.aspx?Item_ 

ID=4517&List_ID=1af869f3-57fb-4de6-b9ae-bdfd83c66c95, archived at https://perma.cc/W9NN-3HDH; Bank of 

Greece, Ενημέρωση για τη χρήση εικονικών νομισμάτων [Information on the Use of Virtual Currencies] (Feb. 12, 

2018), https://www.bankofgreece.gr/Pages/el/Bank/News/Announcements/DispItem.aspx?Item_ID= 

5981&List_ID=1af869f3-57fb-4de6-b9ae-bdfd83c66c95, archived at https://perma.cc/VT22-F9R2.

226 Press Release, National Bank of Hungary, Virtual Money Available on the World Wide Web Carries Increased 

Risks (Dec. 20, 2016), http://www.mnb.hu/sajtoszoba/sajtokozlemenyek/2016-evi-sajtokozlemenyek/fokozottkockazatot-hordoznak-a-vilaghalon-elerheto-virtualis-fizetoeszkozok (in Hungarian), archived at

https://perma.cc/27DT-J7GZ; see also Christian Keszthelyi, MNB Again Warns about Cryptocurrency Risks, 

BUDAPEST BUSINESS JOURNAL (Dec. 20, 2016), https://bbj.hu/economy/mnb-again-warns-about-cryptocurrencyrisks_126505, archived at https://perma.cc/Q9SL-SYN6. 

227 Id.

228 Press Release, National Bank of Hungary, Warning: It Is Extremely Risky for Consumers to Use Bitcoin (Sept. 

11, 2014), https://www.mnb.hu/fogyasztovedelem/sajtoszoba/figyelemfelhivas-rendkivul-kockazatos-afogyasztoknak-a-bitcoin (in Hungarian), archived at https://perma.cc/GY27-A73N. 

229 Press Release, National Bank of Hungary, New Risks for Virtual Payment Tools (June 10, 2015), 

http://www.mnb.hu/felugyelet/felugyeleti-keretrendszer/felugyeleti-hirek/hirek-ujdonsagok/sajtokozlemeny-ujabbkockazatok-a-fizetesre-hasznalhato-virtualis-eszkozok-koreben (in Hungarian), archived at https://perma.cc/SZQ4-

UC5L. 

230 DEPARTMENT OF FINANCE & DEPARTMENT OF JUSTICE AND EQUALITY, NATIONAL RISK ASSESSMENT FOR 

IRELAND: MONEY LAUNDERING AND TERRORIST FINANCING 85, available at http://www.inis.gov.ie/en/ 

JELR/National_Risk_Assessment_Money_Laundering_and_Terrorist_Financing_Oct16.pdf/Files/National_Risk_A

ssessment_Money_Laundering_and_Terrorist_Financing_Oct16.pdf (last visited Mar. 20, 2018), archived at

https://perma.cc/W8BV-GGKU. 

231 Speech by Gerry Cross, Director of Policy and Risk, Central Bank of Ireland, at Joint Session: Banknotes / 

Identity High Meeting 2018 Security Printers, International Conference & Exhibition Hosted by Intergraf, 

Tomorrow’s Yesterday: Financial Regulation and Technological Change (Mar. 20, 2018), https://www.centralbank. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 43 

where the features of any given ICO match those of financial instrument issuance, then 

financial regulation applies, as of this moment, and issuers and others must, subject to legal 

penalty, ensure that they comply with the relevant rules.232

Capital gains tax law applies to transactions involving cryptocurrencies,233 and this tax is 

chargeable if an individual makes a profit from buying and selling such currencies.234

The Central Bank of Ireland has endorsed a statement by the European Banking Authority, warning 

consumers of risks when undertaking transactions with virtual currencies,235 and of the high risks 

of ICOs.236 

The Irish government continues to take a wait-and-see approach to the regulation 

of cryptocurrencies: 

To the extent that virtual currencies, ICOs, or those involved in their issuance or trading, 

are not subject to existing regulation, then the question arises: has the regulation fallen 

behind developments and needs updating. Or is it the case that these activities are just new 

examples of old types of activity and there is no need for further regulatory intervention, 

beyond making consumers properly aware of the significant risks through consumer 

warnings? Or might it simply be too early to say? . . .At the Central Bank, we are actively 

engaged with other European and international policy makers as we all try to figure out a 

way forward, including for example, work at the ESAs [European Supervisory 

Authorities]. Given the cross-jurisdictional nature of virtual currencies and ICOs, we at the 

Central Bank welcome these efforts by the ESAs.237

 

ie/news/article/financial-regulation-and-technological-change-gerry-cross, archived at https://perma.cc/C9LHEGCN. 

232 Id. 

233 Capital Gains Tax (CGT) on the Sale, Gift or Exchange of an Asset, IRISH TAX AND CUSTOMS (Nov. 21, 2017), 

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/index.aspx, archived at 

https://perma.cc/3B4L-LW7N. 

234 Irish Tax Guide to Cryptocurrency Trading & Investing, LIAM BURNS & CO. ACCOUNTANTS AND TAX ADVISERS, 

https://liamburnsandco.ie/cryptocurrency-tax-guide/ (last visited Apr. 18, 2018), archived at https://perma.cc/LH8PE3GD. 

235 EBA Warning and Opinion on Virtual Currencies, CENTRAL BANK OF IRELAND, https://www.centralbank.ie/c 

onsumer-hub/consumer-notices/eba-opinion-on-virtual-currencies (last visited Mar. 20, 2018), archived at

https://perma.cc/2ZCW-8SZ9. 

236 Alert on Initial Coin Offerings, Information Notice December 2017, CENTRAL BANK OF IRELAND, 

https://www.centralbank.ie/consumer-hub/consumer-notices/alert-on-initial-coin-offerings, archived at

https://perma.cc/JR3C-NJX4. 

237 Speech by Gerry Cross, supra note 231. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 44 

Ireland has harnessed the use of cryptocurrency to help its tourism industry, adopting the 

“Irishcoin,”238 a currency aimed predominantly at the tourism market that is accepted in some 

locations across Ireland.239 

Italy 

A Ministerial Resolution of September 2016 issued by the Revenue Agency (Agenzia delle 

Entrate)240 addressed aspects of the tax treatment of bitcoin and other cybercurrencies. This 

Resolution implemented the decision issued by the European Court of Justice (ECJ) in the case of 

Skatteverket v. David Hedqvist,

241 which held that the value added tax (VAT) does not apply to 

transactions in which cybercurrencies are exchanged for traditional currencies or vice versa.

242 

In addition, the Resolution of 2016 indicates that for purposes of the corporate income tax (Imposta 

sul Reddito sulle Società, IRES) and the Italian regional production tax (Imposta Regionale sulle 

Attività Produttive, IRAP), profits and losses on such transactions constitute corporate income or 

losses subject to taxation.243 The Resolution contains specific requirements for the registration of 

cybercurrency operations, including names, amounts, dates, and other information on 

transactions.244 Bitcoin operations performed by individuals who hold bitcoin for other than 

commercial or corporate purposes do not generate taxable income, according to the Resolution.245 

 

238 Home, IRISHCOIN, http://irishcoin.org (last visited Mar. 20, 2018), archived at https://perma.cc/XYM3-UE9E. 

239 Barry Flanagan, Cryptocurrencies: ‘Lack of Regulation Means Investors Can Make a Lot of Money Fast’, THE 

JOURNAL.IE (July 2, 2017), http://www.thejournal.ie/readme/cryptocurrencies-lack-of-regulation-means-investorscan-make-a-lot-of-money-fast-3470179-Jul2017/, archived at https://perma.cc/69UV-S86N. 

240 Risoluzione Ministeriale 72/E del 2 settembre 2016, Interpello ai sensi dell’art. 11, legge 27 luglio 2000, n. 212, 

Trattamento Fiscale Applicabile alle Societa che Svolgono Attivita di Servizi Relativi a Monete Virtuali [Ministerial 

Resolution 72/E of September 2, 2016, Rule Issued According to Art. 11 of Law No. 212 of July 27, 2000, Fiscal 

Treatment Applicable to Companies that Develop Service Activities Related to Virtual Currencies] (Agenzia 

Entrate), https://www.finaria.it/pdf/bitcoin-tasse-agenzia-entrate.pdf, archived at https://perma.cc/9EAZ-LS79. 

241 Skatteverket v. David Hedqvist, ECLI:EU:C:2015:718 (ECJ Oct. 22, 2015), http://curia.europa.eu/juris/ 

document/document.jsf?text=&docid=170305&pageIndex=0&doclang=en&mode=lst&dir=&occ=first&part=1&cid

=302749, archived at https://perma.cc/JYH8-Q6AL. 

242 Paolo Luigi Burlone, Dichiarazione dei Redditi e Bitcoin [Declaration of Income and Bitcoin], COINLEX, 

https://coinlexit.wordpress.com/2016/04/26/dichiarazione-dei-redditi-e-bitcoin/ (last visited Mar. 16, 2018), 

archived at https://perma.cc/QSN8-XSHV. 

243 Id. 

244 Margherita Pignatelli, Servizi Relativi a Monete Virtuali: il Trattamento Fiscale da Applicare [Services Related 

to Virtual Currencies: Fiscal Treatment to Apply], FISCOIOGGI (Sept. 2, 2016), http://www.fiscooggi.it/normativa-eprassi/articolo/servizi-relativi-monete-virtualiil-trattamento-fiscale-applicare, archived at https://perma.cc/4E6ZYWK8. 

245 Bitcoin e Tasse: Come Fare per la Dichiarazione dei Redditi? [Bitcoin and Taxes: How to Make the Declaration 

of Income?], MERCATI 24, https://www.mercati24.com/bitcoin-tasse/ (last visited Mar. 21, 2018), archived at 

https://perma.cc/S3W4-5BP5. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 45 

Legislative Decree No. 90 of 2017 subjected virtual currency providers to the regulations 

established for traditional money exchange operators.246 To that effect, Legislative Decree No. 90 

charged the Ministry of the Economy and Finance to issue a ministerial decree setting forth the 

modalities and timelines for the legal performance of such activities throughout the country.247 

Accordingly, the Ministry of Economy and Finance’s Treasury Department published a public 

notice requesting comments before February 17, 2018, on the proposed text of the ministerial 

decree.248 It is expected that the ministerial decree will be issued during the upcoming months. 

Latvia 

The position of the Bank of Latvia and the State Revenue Service is that cryptocurrency is a 

contractual, not statutory, means of payment that can be used in transactions of exchange. 

Cryptocurrency cannot be considered as official currency or legal tender because the issuance and 

use of these instruments remains unregulated and they are not linked to any national currency.249

In November of 2017 Latvia amended its anti-money laundering legislation and introduced 

monitoring requirements for virtual currency service providers, including providers of virtual 

currency exchange services. Virtual currency is now defined as the digital representation of a value 

that may be digitally transmitted, stored, or traded, and acts as an exchange instrument without 

being legal tender.250 

Lithuania 

On October 11, 2017, the Bank of Lithuania stated that financial services must be clearly 

dissociated from activities related to virtual currencies and that financial market participants 

should not provide services associated with virtual currencies. In particular, they should not engage 

 

246 Decreto Legislativo 25 maggio 2017, n. 90 Attuazione della Direttiva (UE) 2015/849 Relativa alla Prevenzione 

dell’Uso del Sistema Finanziario a Scopo di Riciclaggio dei Proventi di Attivita Criminose e di Finanziamento del 

Terrorismo [Legislative Decree No. 90 of May 25, 2017, Implementing Directive (EU) 2015/849 of the European 

Parliament and of the Council of 20 May 2015 on the Prevention of the Use of the Financial System for the Purposes 

of Money Laundering or Terrorist Financing. . .] (L.D. No. 90), art. 8, ¶ 1, G.U. June 19, 2017, n. 140, 

http://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:2017-05-25;90!vig=2018-03-14, archived at 

https://perma.cc/YQX5-BJWK. 

247 Id. 

248 Valuta Virtuale: Consultazione Pubblica sul Decreto Ministeriale di cui all’Articolo 17-bis, Comma 8-ter del 

Decreto Legislativo 13 Agosto 2010, n.141 e Successive Modificazioni [Virtual Currency: Public Consultation on 

the Ministerial Decree referred to by Article 17-bis, Paragraph 8-ter of Legislative Decree No. 141 of August 13, 

2010, and Successive Amendments], DIPARTIMENTO DEL TESORO [TREASURY DEPARTMENT], http://www.dt.tesoro. 

it/it/consultazioni_pubbliche/prestatori_virtuale.html (last visited May 9, 2018), archived at 

https://perma.cc/XC9W-J924.

249 Global Cryptocurrency Boom: Latvian Tax Treatment (1), PRICEWATERHOUSECOOPERS (Jan. 25, 2018), 

https://www.mindlink.lv/en/topical/cryptocurrency_1_en/, archived at https://perma.cc/5JG2-88RF. 

250 Amendments to the Law on Prevention of Money Laundering and Terrorist Financing, No. 222 (6049) of Nov. 8, 

2017, OFFICIAL GAZETTE No. 2017/222.7, https://www.vestnesis.lv/op/2017/222.7 (in Latvian), archived at

https://perma.cc/8GEV-DSF2; see also Dmitriy Kolesnikov, Regulation of Virtual Currencies Came into Existence 

in Latvia, NJORD LAW FIRM (Nov. 10, 2017), https://www.njordlaw.com/ru/latvia-introduces-regulation-crypto/ (in 

Russian), archived at https://perma.cc/8T7M-JE5U. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 46 

in the sale of virtual currencies, provide conditions for customers to pay in payment instruments 

issued by them (debit or credit cards), or exchange or execute any other operations in 

virtual currencies.251 

As to initial coin offerings (ICOs), the Bank clarified that depending on the nature of the offering, 

legal acts regulating crowdfunding, collective investment, provision of investment services, etc. 

must be applied.252

On March 6, 2018, the Bank of Lithuania announced that it plans to issue the world’s first digital 

collector coin using blockchain or other equivalent technologies.253 

Luxembourg 

Cryptocurrencies remain largely unregulated in Luxembourg, although the Duchy’s government 

appears to display a more welcoming attitude towards the phenomenon than some of its 

European counterparts. 

On March 14, 2018, the Financial Sector Monitoring Commission (Commission de Surveillance 

du Secteur Financier, CSSF) of Luxembourg issued a statement warning about the risks of 

investing in cryptocurrencies.254 The CSSF’s main objections are that cryptocurrencies are very 

volatile, offer no protection against theft and hacking, lack liquidity, are often the subject of 

misleading information, lack transparency, and are often used for fraud and money laundering.255 

The statement also warned against the risks of Initial Coin Offerings.256 The CSSF, however, 

recognized the value of blockchain technology, noting that it could be used advantageously by the 

financial sector.257 Furthermore, the CSSF’s letter stated that while there is no legal framework 

that specifically applies to cryptocurrencies, the provision of any financial services—including 

those involving cryptocurrencies—requires an authorization from the Minister of Finance.258

 

251 Press Release, Bank of Lithuania, Bank of Lithuania Announces Its Position on Virtual Currencies and ICO (Oct. 

11, 2017), https://www.lb.lt/en/news/bank-of-lithuania-announces-its-position-on-virtual-currencies-and-ico, 

archived at https://perma.cc/B7C8-CPMN. 

252 Position of the Bank of Lithuania on Virtual Currencies and Initial Coin Offering, Approved by the Board of the 

Bank of Lithuania on Oct. 10, 2017, https://www.lb.lt/uploads/documents/files/Pozicijos del virtualiu valiutu ir VV 

zetonu platinimo EN.pdf, archived at https://perma.cc/V85N-PG47. 

253 Press Release, Bank of Lithuania, Lithuania’s Central Bank to Issue the World’s First Digital Collector Coin 

(Mar. 6, 2018), https://www.lb.lt/en/news/lithuania-s-central-bank-to-issue-the-world-s-first-digital-collector-coin, 

archived at https://perma.cc/574C-LU3P. 

254 CSSF, Avertissement sur les monnaies virtuelles [Warning About Cryptocurrencies] (Mar. 14, 2018), 

http://www.cssf.lu/fileadmin/files/Protection_consommateurs/Avertissements/A_monnaies_virtuelles_140318.pdf, 

archived at https://perma.cc/7B3F-QLKY. 

255 Id. at 2–3. 

256 Id. at 3–4. 

257 Id. at 1. 

258 Id. at 4. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 47 

Despite this warning from its main financial services regulator, Luxembourg appears to see the 

development of cryptocurrencies in a positive light. In June 2017, the Luxembourger Minister of 

Finance, Pierre Gramegna, recognized before Parliament that cryptocurrencies are actual 

currencies, as “they are accepted as a means of payment for goods and services by a sufficiently 

large circle of people.”259 He also stated that there was currently no regulation “from a monetary 

perspective” regarding cryptocurrencies, but that cryptocurrency dealers in Luxembourg are bound 

by the same rules as any other financial service providers with regards to the fight against money 

laundering and the financing of terrorism.260 More recently, Gramegna publicly welcomed the 

establishment of BitFlyer, a major bitcoin trading platform, as a fully licensed payment service 

provider in Luxembourg.261 In an interview shortly thereafter, Gramegna stated that 

cryptocurrencies and blockchain technology were both an “unavoidable phenomenon that brings 

added value and efficient services to consumers.”262 Much work remains to be done to provide a 

legislative and regulatory framework for cryptocurrencies, however, as such a framework is 

largely inexistent at this time. During the welcoming ceremony for BitFlyer, the company’s 

founder noted that it had taken them two years to obtain their license and that “the regulation is 

unclear. There is no specific law and one must nevertheless protect the consumer.”263

Malta 

Malta currently does not have any legislation that specifically applies to cryptocurrency, but this 

will soon change. The Maltese government has actively encouraged the development of 

cryptocurrency and issuing many consultations and papers that discuss its regulation and 

development. The aim of these regulations is “[t]o provide the necessary legal certainty to allow 

this industry to flourish.”264 

In October 2017, the government issued a consultation document that proposed a regulatory 

framework for collective investment schemes and investment in cryptocurrencies. As a result of 

 

259 L’État garde un œil sur la monnaie virtuelle [The Government Keeps an Eye on Cryptocurrencies], L’ESSENTIEL

(June 26, 2017), http://www.lessentiel.lu/fr/luxembourg/story/L-tat-garde-un-oeil-sur-la-monnaie-virtuelle29561059, archived at https://perma.cc/U2DS-ZUGJ. 

260 Id. 

261 Pierre Sorlut, Monnaies virtuelles: Pierre Gramegna se félicite de l’arrivée de BitFlyer [Cryptocurrencies: 

Pierre Gramegna Satisfied by the Arrival of BitFlyer], LUXEMBURGER WORT (Jan. 27, 2018), 

https://www.wort.lu/fr/ economie/monnaies-virtuelles-pierre-gramegna-se-felicite-de-l-arrivee-de-bitflyer5a6c3646c1097cee25b7c821, archived at https://perma.cc/Q4QS-YWAK. 

262 Pierre Sorlut, Ce qu’en pense le ministre des Finances: Les monnaies virtuelles, «un phénomène incontournable» 

[What the Minister of Finances Thinks of It: Cryptocurrencies, an “Unavoidable Phenomenon”], LUXEMBURGER 

WORT (Jan. 31, 2018), https://www.wort.lu/fr/economie/ce-qu-en-pense-le-ministre-des-finances-les-monnaiesvirtuelles-un-phenomene-incontournable-5a70269ac1097cee25b7ca3b, archived at https://perma.cc/TD7M-EQL4. 

263 Sorlut, Monnaies virtuelles, supra note 261. 

264 Ivan Martin, Malta Digital Innovation Authority Unveiled: Government Working on Green Paper on AI and 

Internet of Things, TIMES OF MALTA (Feb. 16, 2018), https://www.timesofmalta.com/articles/view/20180216/ 

local/malta-digital-innovation-authority-unveiled.670847, archived at https://perma.cc/7P7W-7V3R. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 48 

the consultation, Malta Financial Services Authority (MFSA) published conditions that apply to 

professional investor funds that invest in cryptocurrencies on January 22 and 29, 2018.265 

In November 2017, the government published the Discussion Paper on Initial Coin Offerings, 

Virtual Currencies and Related Service Providers, which noted that while some cryptocurrencies 

might fall within the scope of existing financial services legislation, others would be outside the 

scope and thus unregulated.266 In January 2018, the government issued a further discussion paper 

that “present[ed]a conceptual framework through which DLT Platforms can be subject to 

certification in Malta.”267 The government has issued a statement that it intends to facilitate a 

regulatory framework for cryptocurrency-related activities and initial coin offerings (ICOs).268 

Malta is currently considering three bills that would provide a regulatory framework for 

cryptocurrency and is following a principles-oriented approach to this legislation to help prevent 

the laws from becoming rapidly obsolete, or from stifling technological development.269 The three 

bills are as follows: 

 The Malta Digital Innovation Authority Bill (MDIA Bill) would establish the Malta Digital 

Innovation Authority (MDIA), which would “focus on innovative technology arrangements 

and their uses such that Malta can take the greatest advantage of new technology arrangements 

while at the same time protect[ing] the public interest.”270 One of the first objectives for the 

MDIA would be to promote government policies that favor technical innovation, particularly 

with reference to digital ledger technology and its adoption by the government in systems of 

public administration.271 Other objectives would include maintaining Malta’s reputation and 

protecting consumers.272 The MDIA would also bear responsibility for certifying technology 

arrangements and registering technology services providers under the “TAS Bill.”273

 The “TAS Bill” would establish a regime for the registration of technology service providers 

and provide for the certification of certain technology arrangements. This regime will initially 

 

265 PARLIAMENTARY SECRETARIAT FOR FINANCIAL SERVICES ET AL., MALTA: A LEADER IN DLT REGULATION 9 

(2018), available at https://meae.gov.mt/en/Public_Consultations/OPM/Documents/PS FSDEI - DLT Regulation 

Document OUTPUT.PDF, archived at https://perma.cc/29US-4V9D. 

266 MFSA, Discussion Paper on Initial Coin Offerings, Virtual Currencies and Related Service Providers, MFSA 

Ref: 08-2017 (Nov. 30, 2017; closing date Jan. 11, 2018), http://act.com.mt/media/images/active/downloads/ 

DiscussionPaperVCs.pdf, archived at https://perma.cc/2M25-K9SF. 

267 Id. 

268 Press Release, Parliamentary Secretariat for Financial Services, Digital Economy and Innovation, PR172729 

(Nov. 29, 2017), https://www.gov.mt/en/Government/Press%20Releases/Pages/2017/November/29/pr172729.aspx, 

archived at https://perma.cc/FW37-K2WX. 

269 PARLIAMENTARY SECRETARIAT FOR FINANCIAL SERVICES ET AL., supra note 265, at 265. 

270 Id. at 11. 

271 Id. at 12. 

272 Id. 

273 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 49 

cover distributed ledger technology platforms and related contracts.274 The proposals would 

require technology service providers that provide services for any distributed ledger 

technology platform in or from Malta be certified by the MDIA. Those who provide these 

services in other specified cases may voluntary register with the MDIA.275

 The Virtual Currency Bill would establish a framework for ICOs and a regulatory regime that 

would apply to certain services relating to cryptocurrencies, such as brokers, wallet providers, 

and virtual currency exchanges.276 The Times of Malta has reported that the government is 

considering introducing its own cryptocurrency “within a ‘controlled framework,’ which 

would enable regulators to test possible controls and legislation for the technology.”277 The 

Virtual Currency Bill aims to regulate ICOs that relate to virtual currency not falling within 

the existing legislation. The bill will ensure that the offerings meet transparency requirements 

and will incorporate obligations that apply to initial public offerings that the issuer 

must follow.278

The MFSA has also proposed a “financial instrument test” that would enable individuals 

to determine, 

with regulatory certainty[,] . . . whether, based on its specific features, an ICO or a VC 

[virtual currency] falls within the scope of the existing legislative framework, reflecting 

EU law on the subject, or if not, whether this will be required to comply with the new 

regulatory framework being proposed by the MFSA.279

The test proposed would be a two-stage test, the first of which would determine whether a 

cryptocurrency is a financial instrument within existing Maltese or European Union legislation. 

The second stage would determine if the cryptocurrency was an asset under the proposed Virtual 

Currency Bill.280

The MFSA would be the regulator for the financial services contained in the Virtual Currency Bill, 

and would have regulatory and investigatory powers that reflect those contained in the country’s 

other financial services laws, including the authority to suspend an ICO or trading of a 

cryptocurrency.281

 

274 Id. at 13. 

275 Id. at 14. 

276 Id. 

277 Id. 

278 Id. at 26. 

279 Id. at 24. 

280 Id. 

281 Id. at 26. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 50 

The government has also established a National Blockchain Strategy Taskforce to advise the 

government on a framework for distributed ledger technologies.282

After one of Malta’s largest banks, the Bank of Valletta, blocked cryptocurrency transfers,283 the 

government of Malta stated that it does not “interfere with individual banks’ operational policies, 

which are dictated by circumstances which they are best placed to assess.”284 Many residents of 

Malta expressed surprise at the actions of the Bank, particularly as the government of Malta is its 

largest shareholder, owning approximately 25% of the Bank’s shares.285 

The Malta Gaming Authority has also stated that it is “committed to allow[ing] the use of cryptocurrencies by its licensees in the immediate future,”286 and a new Gaming Bill is currently being 

considered that includes virtual currencies under the definition of “money and, or 

money’s worth.”287

Netherlands288

The Central Bank of the Netherlands (De Nederlandsche Bank, DNB) has stated that it is studying 

the opportunities offered by blockchain and virtual currencies, but acknowledged that there are 

certain risks and drawbacks involved.289 Furthermore, in January 2018, it published a position 

paper on cryptocurrencies and ICOs in which it highlighted that cryptocurrencies “do not currently 

fulfill the role of money—in fact, they are hardly ever used for payment, and they are not a 

universally accepted and stable medium of exchange, a suitable unit of account or a reliable store 

of value. Accordingly, they do not have any implications in terms of monetary policy.”290 

 

282 Id. at 9. 

283 Bertaind Borg, BOV Turns Against Cryptocurrencies, TIMES OF MALTA (Nov. 28, 2017), https://www.timesof 

malta.com/articles/view/20171128/local/bov-turns-against-cryptocurrencies.664322, archived at 

https://perma.cc/KR2K-FN68.

284 Press Release, Parliamentary Secretariat for Financial Services, Digital Economy and Innovation, supra note 268. 

285 Borg, supra note 283. 

286 MALTA GAMING AUTHORITY, A WHITE PAPER TO FUTURE PROOF MALTA’S GAMING LEGAL FRAMEWORK 28 

(July 2017), https://meae.gov.mt/en/Public_Consultations/OPM/Documents/Legal Overhaul Consultation with 

Annexes.pdf, archived at https://perma.cc/25QQ-8YZV. 

287 Gaming Bill 2018, cl. 2(1), http://justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=28971&l=1, 

archived at https://perma.cc/NV7F-VCD5. 

288 At present there are no Law Library of Congress research staff members versed in Dutch. This survey of the law 

of the Netherlands has been prepared by the author’s reliance on practiced legal research methods and on the basis 

of relevant legal resources, chiefly in English, currently available in the Law Library and online. 

289 Virtual Currencies, DNB, https://www.dnb.nl/en/payments/virtuele-valuta/index.jsp (last visited Mar. 20, 2018), 

archived at http://perma.cc/N3KY-MSLJ. 

290 DNB, POSITION PAPER BY DE NEDERLANDSCHE BANK. ROUNDTABLE CRYPTOCURRENCIES/ICO’S 1 (Jan. 22, 

2018), https://www.dnb.nl/en/binaries/TR17025%20Position%20paper%20Cryptocurrencies_tcm47-

371493.pdf?2018032021, archived at http://perma.cc/6C3N-GF4B. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 51 

The DNB supports the decision of the EU to extend the scope of the Fourth AMLD to include 

crypto exchanges and issuers of crypto wallets.291 It is looking into whether converting 

cryptocurrencies into euros or other currencies, and vice versa, qualifies as issuing electronic 

money or as providing a payment service. It does not currently support a ban 

on cryptocurrencies.292

As a pilot project, the DNB has started the “DNBCoin” experiment for internal test purposes and 

focused on the blockchain as a vehicle for a virtual currency. They have developed several 

prototypes to study the way the bitcoin software can be adapted and used for financial 

market infrastructures.293

The Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, AFM) has issued 

a warning regarding serious risks associated with ICOs.294 It has advised consumers to avoid 

investing in ICOs, because they are vulnerable to misrepresentation, fraud, and manipulation and 

may also be structured in such a way that they are not subject to supervision by the AFM. The 

AFM assesses on a case-by-case basis whether the tokens in an ICO qualify as a security or a unit 

in a collective investment scheme as defined in the Financial Supervision Act and are therefore 

subject to authorization by the AFM.295

The Dutch Minister of Finance, Wopke Hoekstra, stated in a letter to parliament that the 

Netherlands does not want to ban the cryptocurrency trade, but that it should be regulated on a 

European or international level.296 Any regulation, however, should not jeopardize the potential of 

the technique.297 He also supports the application of anti-money laundering legislation to custodian 

wallet providers and virtual currency exchange platforms.298

 

 

291 Id. at 3. 

292 Id. 

293 Ron Berndsen, De Nederlandsche Bank, Speech at the Dutch Blockchain Conference, If Blockchain is the 

Answer, What is the Question? (June 20, 2016), https://www.dnb.nl/binaries/Speech%20Ron%20Berndsen_tcm46-

342846.pdf, archived at http://perma.cc/SM4V-K99L. 

294 Initial Coin Offerings (ICO’s): Serious Risks, AFM, https://www.afm.nl/en/professionals/onderwerpen/ico (last 

visited Apr. 5, 2018), archived at http://perma.cc/7LGR-W95Y. 

295 Id.; Wet op het financieel toezicht [Wft] [Financial Supervision Act], Sept. 28, 2006, STAATSBLAD VAN HET 

KONINKRIJK DER NEDERLANDEN [STB.] [OFFICIAL GAZETTE OF THE KINGDOM OF THE NETHERLANDS] 2006, no. 475, 

as in force on Feb. 9, 2018, art. 1:1, http://wetten.overheid.nl/BWBR0020368/2018-02-09, archived at 

http://perma.cc/CA3G-Y5ZK. 

296 Brief van de Minister van Financiën Aan de Voorzitter van de Tweede Kamer der Staten-Generaal [Letter of the 

Minister of Finance to the Chairman of the House of Representatives], Mar. 8, 2018, https://1848.nl/static/pdf/ 

43/a5/43a59ddec48a8119409c4d021cedecd22ac9162a.pdf, archived at http://perma.cc/2J54-H8QC. 

297 Id. 

298 Id.
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 52 

Poland 

On July 7, 2017, the Polish National Bank and the Financial Supervision Commission jointly 

issued a warning against investing in virtual currencies, citing price volatility and the risk of fraud. 

The regulators clarified that virtual currencies are not considered legal tender in Poland. At the 

same time they noted that trading in virtual currencies is not an infringement of Polish or European 

law. The regulators consider that buying, holding, and selling of virtual currencies by financial 

institutions is not in line with the principles of stable and prudent management, and that having 

established relations with virtual currency traders could pose legal and reputational risk.299 

On January 24, 2018, Prime Minister Morawiecki stated that Poland will either ban cryptocurrency 

or introduce regulations to ensure that it does not turn into a pyramid scheme.300

On April 4, 2018, the Ministry of Finance published guidance on the tax effects of trading in 

cryptocurrencies.301 Income from transactions on cryptocurrencies is subject to income tax with 

two brackets of 18% and 32%, while the act of selling or purchasing digital currencies is 

considered a transfer of property rights, which is subject to a 1% levy on the value of 

the transaction.302

 

 

299 Statement by Narodowy Bank Polski (NBP) and the Polish Financial Supervision Authority (KNF) on “Virtual 

Currencies” (July 7, 2017), https://www.knf.gov.pl/en/news?articleId=57368&p_id=19, archived at

https://perma.cc/4T6N-VBT8; see also Wolfie Zhao, Polish Regulators Warn Banks and Consumers on 

Cryptocurrency Risks, COINDESK (July 7, 2017), https://www.coindesk.com/polish-regulators-warn-banksconsumers-cryptocurrency-risks/, archived at https://perma.cc/G9X5-7SPU. 

300 Michał Żuławiński, Morawiecki: We Will Ban Cryptocurrencies or Regulate Them. “We Do Not Want Another 

Amber Gold”, BANKIER.PL (Jan. 25, 2018), https://www.bankier.pl/wiadomosc/Morawiecki-Zakazemy-kryptowalutlub-je-uregulujemy-Nie-chcemy-kolejnego-Amber-Gold-7568737.html (in Polish), archived at

https://perma.cc/6UWU-AKBQ. 

301 Press Release, Ministry of Finances, Tax Consequences of Trading in Cryptocurrencies for Individual Income 

Tax, Value-Added Tax and Tax on Civil Law Transactions, https://www.mf.gov.pl/ministerstwo-finansow/ 

wiadomosci/aktualnosci/ministerstwo-finansow2/-/asset_publisher/M1vU/content/skutki-podatkowe-obrotukryptowalutami-w-pit-vat-i-pcc (in Polish), archived at https://perma.cc/37N9-TS6C. 

302 Konrad Krasuski, Crypto Traders Protest Poland’s Tax Decision, BLOOMBERG (Apr. 9, 2018), 

https://www.bloomberg.com/news/articles/2018-04-09/crypto-traders-protest-as-poland-wants-tax-from-alltransactions, archived at https://perma.cc/2EUZ-GQM9. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 53 

Portugal 

According to the Federal Reserve Bank of Portugal (Banco de Portugal), the activity of issuing 

and trading virtual currencies is neither regulated nor supervised by the Federal Reserve Bank of 

Portugal or any other authority of the financial system, national or European, in particular by the 

European Central Bank.303 The absence of regulations on operations with virtual currencies does 

not make these activities illegal or prohibited, the Bank noted. However, entities that issue and 

sell virtual currencies are not subject to any obligation of authorization or registration with the 

Federal Reserve Bank of Portugal, so their activity is not subject to any kind of prudential or 

behavioral supervision.304

Romania 

On February 6, 2018, Romania’s National Bank announced that it discourages any involvement of 

local credit institutions in the cryptocurrency sector because of reputational risks.305 The Bank 

reminded of its earlier warning issued in March of 2015306 on the high risks of losing the money 

invested in cryptocurrencies. Following this announcement the local banks closed the accounts of 

several cryptocurrency exchanges.307 

In March of 2018 the National Agency for Fiscal Administration reportedly declared that income 

from transactions with cryptocurrencies are taxable.308 

 

 

303 Moedas Virtuais, BANCO DE PORTUGAL, https://www.bportugal.pt/page/moedas-virtuais (last visited Mar. 19, 

2018), archived at https://perma.cc/YR5Q-9DWV. For further discussion of the European Central Bank’s position 

on digital currencies, see the EU survey, supra. 

304 Id. 

305 Press Release, National Bank of Romania, The Position of the National Bank of Romania in Relation to the 

Virtual Currencies (Feb. 6, 2018), http://www.bnr.ro/page.aspx?prid=14338 (in Romanian), archived at

https://perma.cc/G9T9-CF3K; see also Romania’s Central Bank Warns Local Lenders Not to Get Involved with 

Bitcoin, ROMANIA-INSIDER.COM (Feb. 7, 2018), https://www.romania-insider.com/bnr-warning-bitcoin/, archived at

https://perma.cc/Y65Q-KLW2. 

306 Press Release, National Bank of Romania, Commentary on Virtual Currency Schemes (Mar. 11, 2015), 

http://www.bnr.ro/page.aspx?prid=10016 (in Romanian), archived at https://perma.cc/S8T2-DGRG. 

307 Romanian Banks Stop Working with Cryptocurrency Platforms, ROMANIA-INSIDER.COM (Feb. 19, 2018), 

https://www.romania-insider.com/banks-stop-working-cryptocurrency-platforms/, archived at

https://perma.cc/Z5HE-SA2G. 

308 Romanians with Bitcoin Must Pay Tax and Social Contributions Despite Virtual Currency Not Being Regulated 

in Romania, LIBERTATEA (Mar. 4, 2018), https://www.libertatea.ro/stiri/exclusiv-romanii-cu-bitcoin-datori-la-fisctrebuie-platit-impozit-pe-venit-si-contributii-sociale-desi-monedele-virtuale-nu-sunt-reglementate-in-romania2163395 (in Romanian), archived at https://perma.cc/H966-59E4. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 54 

Slovakia 

On March 23, 2018, the Ministry of Finance published guidance explaining that revenues 

stemming from cryptocurrencies must be taxed, and that any type of exchange, such as an 

exchange of a virtual currency for an asset or a service rendered or for another virtual currency, 

must be considered to be a taxable transfer.309 The guidance says that virtual currencies must be 

treated as “short-term financial assets other than money” and priced at market value at the time of 

transaction, and that cryptocurrencies directly obtain from mining shall be kept off-balance sheet 

until they are sold or traded.310 Earlier the Finance Minister had noted that trade in 

cryptocurrencies, which is unregulated and anonymous, involves risks of terrorism and 

organized crime.311 

In 2013 the National Bank of Slovakia issued a warning to inform the general public that virtual 

currencies are not national currencies and that unauthorized currency production constitutes a 

criminal offense.312 

Slovenia 

On January 18, 2018, the Bank of Slovenia warned citizens that virtual currencies are not a digital 

replacement for banknotes and coins, and are not regulated.313 The Bank explained that entities 

purchasing, depositing, or trading virtual currencies in Slovenia are not systematically regulated 

and supervised. It advised citizens to inform themselves about virtual currencies before buying 

them and to be aware that they could lose their investments in those currencies.314 Following the 

Bank’s warning commercial banks reportedly stopped selling cryptocurrencies via ATMs.315 

Earlier on October 9, 2017, the Financial Stability Board recommended that investors in virtual 

currencies consider whether the risks are in line with their personal preferences and investment 

 

309 Methodological Guideline of the Ministry of Finance of the Slovak Republic No. MF/10386/2018-721 for the 

Procedure of Taxing Virtual Currency, available at http://src.bna.com/xod (in Slovak), archived at

https://perma.cc/C897-ZS9T; see also Jan Sojaspal, Slovakia to Tax Cryptocurrency Income, BLOOMBERG (Mar. 28, 

2018), https://www.bna.com/slovakia-tax-cryptocurrency-n57982090526/, archived at https://perma.cc/F34QU9V5. 

310 Methodological Guideline, supra note 309. 

311 Finance Minister Plans to Start Taxing Bitcoin, THE SLOVAK SPECTATOR (Jan. 8, 2018), https://spectator.sme.sk/ 

c/20733083/financial-minister-plans-to-start-taxing-bitcoin.html, archived at https://perma.cc/NN5W-JEJY. 

312 Press Release, National Bank of Slovakia, Národná Banka Slovenska’s Warning to the Public on Bitcoin (Nov. 

26, 2013), https://www.nbs.sk/en/press/all-press-releases/press-release/_narodna-banka-slovenska-s-warning-to-thepublic-on-bitcoin, archived at https://perma.cc/9A5B-3PCR. 

313 Press Release, Bank of Slovenia, Questions and Answers on Virtual Currencies (Jan. 18, 2018), https://www.bsi. 

si/en/media/1180/questions-and-answers-on-virtual-currencies, archived at https://perma.cc/C3XV-HR2A. 

314 Slovenia Cbank Warns about Virtual Currency Risks, REUTERS (Jan. 18, 2018), https://www.reuters.com/article/ 

slovenia-cenbank/update-1-slovenia-cbank-warns-about-virtual-currency-risks-idUSL8N1PD4II, archived at

https://perma.cc/TK6R-ZW4D. 

315 Slovenian Regulator Bans Sale of Cryptocurrency on ATMs, TOTAL-SLOVENIA-NEWS (Feb. 8, 2018), 

http://www.total-slovenia-news.com/business/602-slovenian-regulator-bans-sale-of-cryptocurrency-on-atms, 

archived at https://perma.cc/DT4N-W3X7. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 55 

goals,316 and that investors in ICOs should invest in amounts that would not leave them 

too exposed.317 

Spain 

Spain’s Comisión Nacional de Valores (National Securities Commission) and the Banco de España 

(Bank of Spain) issued a joint statement regarding the use of bitcoin in February 2018318 noting 

that cryptocurrency is not issued, registered, authorized, or verified by any regulatory agency in 

Spain. Therefore, cryptocurrencies purchased or held in Spain are not backed by any of the 

guarantees or safeguards provided by regulations applicable to banking or investment products.319

The statement aimed to alert investors of the inherent risk of loss or fraud associated with these 

types of transactions.320

Notwithstanding this warning, the government is considering the adoption of legislation friendly 

towards cryptocurrencies, which would include possible tax breaks to attract companies in the 

blockchain technology sector.321 

Profits derived from transactions with cryptocurrencies are taxable under the Law on Income Tax 

of Individuals.322 However, the Dirección General de Tributos (General Directorate on Taxation) 

has established that transactions with bitcoins are exempt from value added tax.323

Sweden 

Sweden does not have any specific regulation that deals with cryptocurrencies. A number of 

agencies have issued statements, reports, and preliminary judgements on how they interpret 

cryptocurrencies and how such currencies relate to Swedish law. 

 

316 Press Release, Bank of Slovenia, Financial Stability Board (Sept. 10, 2017), https://www.bsi.si/en/media/1138/ 

opozorilo-glede-virtualnih-valut, archived at https://perma.cc/GLK6-XB9X. 

317 Slovenia’s Financial Watchdog Warns about Virtual Currency Risks, REUTERS (Oct. 9, 2017), 

https://www.reuters.com/article/us-slovenia-watchdog/slovenias-financial-watchdog-warns-about-virtual-currencyrisks-idUSKBN1CE1ZE, archived at https://perma.cc/J7DF-LJMC. 

318 Comunicado Conjunto de la Comisión Nacional del Mercado de Valores (CNMV) y Banco de España [Joint 

Press Statement by CNMV and Banco de España on “Cryptocurrencies” and “Initial Coin Offerings” (ICOs)] (Feb. 

8, 2018), https://www.cnmv.es/loultimo/NOTACONJUNTAriptoES%20final.pdf, archived at

https://perma.cc/K5J4-WJM4. 

319 Id. 

320 Id. 

321 España Busca Aprobar una Legislación Amistosa para las Criptomoneda [Spain Seeks to Approve Friendly 

Legislation Towards Cryptocurrencies], HARWAREATE (Feb. 18, 2018), https://hardwareate.com/espana-buscaaprobar-una-legislacion-amistosas-las-criptomonedas, archived at https://perma.cc/6VTJ-NRRV. 

322 José Trecet, Declaración de Impuesto a la Renta: Cómo Tributan los Bitcoins en la Renta [Income Tax 

Reporting: How Are Bitcoins Taxed], BOLSAMANÍA (Mar. 1, 2018), http://www.bolsamania.com/declaracionimpuestos-renta/como-tributan-los-bitcoins-en-la-renta/, archived at https://perma.cc/G4Y7-A59M. 

323 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 56 

The Swedish Financial Supervisory Authority (Finansinspektionen) has made the determination 

that bitcoins are subject to its authority, as trade in bitcoins (i.e., offering a site where bitcoins can 

be bought and sold similar to an exchange) is a financial service (annan finansiell verksamhet) and 

thus subject to mandatory reporting requirements.324 In 2017, the Authority issued a report titled 

The Authority’s Role in Innovation, which among other things described its role in relation to novel 

concepts such as bitcoin.325 The report described ICOs as investment projects and means of 

securing capital.326 The Authority has also issued warnings against the use of ICOs, noting that 

they are unregulated and not subject to its review.327 It referred to the European Supervisory 

Authority for its interpretation that ICOs may be regulated by the Prospectus Directive, the 

Markets in Financial Instruments Directive (MiFID), the Alternative Investment Fund Managers 

Directive (AIFMD), and the Fourth Anti-Money Laundering Directive.328 The Authority’s 2017 

report stated that it is unaware of any Swedish corporation that secures funding through ICOs.329

In March of 2018 the Swedish Central Bank announced that “[b]itcoins are not money.”330 The 

announcement explained that cryptocurrencies are not seen as currencies, referencing a new 

financial report on cryptocurrencies written by the Central Bank of Sweden staff.331 The Central 

Bank of Sweden is considering launching an e-currency, but the project is still in the 

review stage.332

 

324 Press Release, Finansinspektionen, Valutaväxlare och annan finansiell verksamhet [Currency Exchanges and 

Other Financial Activity] (updated Jan. 24, 2017), https://www.fi.se/sv/bank/sok-tillstand/valutavaxlare-och-annanfinansiell-verksamhet/, archived at https://perma.cc/K7DH-T2NN. 

325 FINANSINSPEKTIONEN, MYNDIGHETENS ROLL KRING INNOVATIONER [THE AUTHORITY’S ROLE REGARDING 

INNOVATION] 12 (Dec. 1, 2018), https://www.finansinspektionen.se/contentassets/d3cd30fe473d4a7995f0 

c38209ddb7f1/myndighetens-roll-kring-innovationer.pdf, archived at https://perma.cc/Y229-M3A7. 

326 Id. 

327 Press Release, Finansinspektionen, Varning för risker med Initial Coin Offerings (ICO) [Warning of Risks 

Associated with Initial Coin Offerings] (Nov. 7, 2017), http://www.fi.se/sv/publicerat/nyheter/2017/varning-forrisker-med-initial-coin-offerings/, archived at https://perma.cc/D9BS-K8C6. 

328 Id.; see also Press Release, European Securities and Market Authority, ESMA Highlights ICO Risks for Investors 

and Firms (Nov. 13, 2017), https://www.esma.europa.eu/press-news/esma-news/esma-highlights-ico-risks-investorsand-firms, archived at https://perma.cc/XGT3-T3QW. 

329 FINANSINSPEKTIONEN, supra note 63, at 325. 

330 Press Release, Sveriges Riksbank, Bitcoin är inte pengar [Bitcoins Are Not Money] (Mar. 14, 2018), 

https://www.riksbank.se/sv/press-och-publicerat/nyheter-och-pressmeddelanden/nyheter/2018/bitcoin-ar-intepengar/, archived at https://perma.cc/KXK7-PPW8. 

331 Gabriel Söderberg, Ekonomiska kommentarer, Är Bitcoin och andra kryptotillgångar pengar? [Financial 

Commentary: Are Bitcoin and Other Cryptocurrencies Money?], SVERIGES RIKSBANK (Mar. 14, 2018), 

https://www.riksbank.se/globalassets/media/rapporter/ekonomiska-kommentarer/svenska/2018/ar-bitcoin-ochandra-kryptotillgangar-pengar, archived at https://perma.cc/PDP4-X2HU. 

332 See Behöver Sverige en e-krona?[Does Sweden Need a E-Currency?], SVERIGES RIKSBANK (Apr. 9, 2018), 

https://www.riksbank.se/sv/finansiell-stabilitet/det-finansiella-systemet/betalningar/behover-sverige-en-e-krona/?, 

archived at https://perma.cc/KKD8-WBJE. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 57 

In 2015 the Swedish Tax Authority published a guideline on how it will view and tax mined 

bitcoins for the 2014 tax year.333 Unless specific conditions are met the digital currency mined is 

considered income from a hobby, and generally tax exempt.334 The Tax Authority has not issued 

a determination on the applicability of the Income Tax Act with respect to potential capital gains 

from bitcoins. 

The Swedish Skatterättsnämnden (Swedish Tax Board) issued a preliminary ruling in 2013 on 

value-added tax (VAT) and bitcoins, stating that trade in bitcoins is not subject to Swedish VAT, 

but is instead subject to Financial Supervisory Authority regulations and treated as a currency. The 

decision was appealed by the Swedish Tax Authority.335 The Swedish Administrative Supreme 

Court ruled that bitcoins and similar cryptocurrencies are not subject to VAT.336 That decision was 

rendered following a preliminary judgment from the Court of Justice of the European Union 

holding that cryptocurrencies are exempt from VAT.337

In 2014 representatives of the Swedish Enforcement Authority announced to Swedish media 

outlets that it would start to investigate and seize bitcoin holdings when collecting funds from 

indebted individuals.338 The first seized bitcoins were auctioned off online in 2017.339

 

333 Guidelines available at Skatteverket Dnr: 131 191846-15/111 Beskattning vid mining av bitcoin och andra 

virtuella valutor m.m. [Guidelines on the Taxation of Mining of Bitcoins and Other Virtual Currencies] (Apr. 24, 

2015), https://www4.skatteverket.se/rattsligvagledning/338713.html?q=131+191846-15%2F111, archived at 

https://perma.cc/QVH3-H8AL; see also Elin Hofverberg, Sweden: Tax Authority Publishes Guidelines for Income 

Tax on Bitcoin Mining, Suggests Prohibition of Bitcoin Use in Waste and Scrap Metal Transactions, GLOBAL LEGAL 

MONITOR (May 20, 2015), http://www.loc.gov/law/foreign-news/article/sweden-tax-authority-publishes-guidelinesfor-income-tax-on-bitcoin-mining-suggests-prohibition-of-bitcoin-use-in-waste-and-scrap-metal-transactions/, 

archived at https://perma.cc/ZR8B-UP8X (emphasis added). 

334 Skatteverket, supra note 333. 

335 Skatterättsnämnden, Förhandsbesked [Preliminary Ruling], Mervärdesskatt: Handel med bitcoins [VAT: Trade 

with Bitcoins] (Oct. 14, 2013), http://skatterattsnamnden.se/skatterattsnamnden/forhandsbesked/2013/forhands 

besked2013/mervardesskatthandelmedbitcoins.5.46ae6b26141980f1e2d29d9.html, archived at 

https://perma.cc/AET4-3T4N. 

336 Högsta förvaltningsdomstolens dom [Supreme Administrative Court’s Judgment] (SAC Judgment), Nr. 7101-13 

(Feb. 2, 2016), http://www.hogstaforvaltningsdomstolen.se/Domstolar/regeringsratten/Avg%C3%B6randen/ 

2016/Februari/7101-13.pdf, archived at https://perma.cc/JU5G-KLWE; see also Elin Hofverberg, Sweden: Supreme 

Administrative Court Rules Trade in Bitcoins Not Subject to VAT, GLOBAL LEGAL MONITOR (Feb. 4, 2016), 

http://www.loc.gov/law/foreign-news/article/sweden-supreme-administrative-court-rules-trade-in-bitcoins-notsubject-to-vat/, archived at https://perma.cc/82P2-CBBA. 

337 Case C‐264/14. Skatteverket v. David Hedqvist, 2015 CURIA EUROPA, ECLI:EU:C:2015:718 (Oct. 22, 2015), 

http://curia.europa.eu/juris/document/document.jsf?docid=170305&doclang=EN, archived at

https://perma.cc/LU2G-U6VD. 

338 Kronofogden ska leta Bitcoins hos skuldsatta [Swedish Enforcement Authority to Look for Bitcoins from Indebted 

Individuals], SVERIGES RADIO (Oct. 6, 2014), http://sverigesradio.se/sida/artikel.aspx?programid=1646&artikel 

=5983956, archived at https://perma.cc/AR5S-V7G2; see also Elin Hofverberg, Sweden: Enforcement Authority to 

Collect Bitcoins, GLOBAL LEGAL MONITOR (Oct. 23, 2014), http://www.loc.gov/law/foreign-news/article/swedenenforcement-authority-to-collect-bitcoins/, archived at https://perma.cc/6YVP-CLNX. 

339 Press Release, Kronofogden, Nu kan du köpa bitcoin hos Kronofogden [Now You Can Purchase Bitcoins from 

the Swedish Enforcement Authority] (Oct. 12, 2017), https://www.kronofogden.se/66713.html, archived at 

https://perma.cc/ZT5P-VWDS; see also Elin Hofverberg, Sweden: Bitcoins Seized During Asset Seizure, GLOBAL 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 58 

In a response to a question from a member of Parliament the Swedish government has advised 

caution in the use of cryptocurrencies by citizens, as it is unregulated and carries risk.340

On July 23, 2017, the Nasdaq Stockholm Disciplinary Committee rendered a decision that ordered 

the bitcoin company XBT Provider AB to pay a fine of SEK1,000,000 (approximately 

US$120,000) for failing to publish annual reports and make its prospectus available online.341

United Kingdom 

The United Kingdom does not have any laws that specifically regulate cryptocurrencies, such as 

bitcoin, ethereum, litecoin, etc. The governor of the Bank of England reportedly stated that 

regulation of cryptocurrencies is necessary: 

A better path would be to regulate elements of the crypto-asset ecosystem to combat illicit 

activities, promote market integrity, and protect the safety and soundness of the 

financial system[.]342

Section 2A of the Bank of England Act 1998 specifies that the Bank of England has responsibility 

to both protect and enhance the stability of the financial system of the UK.343 Pursuant to this 

objective, the Bank has considered the risk cryptocurrencies pose to the stability of the UK’s 

financial markets and determined that the size of the cryptocurrency market is currently not large 

enough to pose a “material risk to monetary or financial stability in the UK.”344

Other concerns raised by the use of cryptocurrencies include ensuring consumers are protected 

when using this form of payment, money laundering, taxation, and the use of these systems to 

finance terrorism and other crimes.345 

 

LEGAL MONITOR (Nov. 7, 2017), http://www.loc.gov/law/foreign-news/article/sweden-bitcoins-seized-during-assetseizure/, archived at https://perma.cc/8QBR-V887.

340 Statsrådet Per Bolund (MP), Kryptovalutor på svenska marknaden, Svar på skriftlig fråga 2017/18:484 

[Cryptocurrencies on the Swedish Market, Answer to Written Question 2017/18:484] (Jan. 10, 2018), 

http://www.riksdagen.se/sv/dokument-lagar/dokument/svar-pa-skriftlig-fraga/kryptovalutor-pa-svenskamarknaden_H512484, archived at https://perma.cc/959K-AWSY.

341 Nasdaq Stockholm Disciplinary Committee, Decision 2017:07 (July 23, 2017), http://www.nasdaqomx.c 

om/digitalAssets/106/106081_decision.pdf, archived at https://perma.cc/B3U3-PS6R. 

342 Arjun Kharpal, Bank of England’s Carney Calls for More Regulation around the ‘Speculative Mania’ of 

Cryptocurrencies, CNBC (Mar. 2, 2018), https://www.cnbc.com/2018/03/02/bank-of-england-mark-carneycryptocurrency-regulation.html, archived at https://perma.cc/G8G9-Y32W. 

343 Bank of England Act 1998, c. 11, § 2A, http://www.legislation.gov.uk/ukpga/1998/11, archived at

https://perma.cc/A3KP-XSF9. 

344 Robleh Ali et al., The Economics of Digital Currencies, 54(3) BANK OF ENGLAND QUARTERLY BULLETIN 262,

276 (2014), https://www.bankofengland.co.uk/-/media/boe/files/digital-currencies/the-economics-of-digitalcurrencies.pdf?la=en&hash=BE28BE59F18E79CCE705643CF14F36DF8897E56D, archived at

https://perma.cc/XH6S-NHJX; Digital Currencies, BANK OF ENGLAND, https://www.bankofengland.co.uk/ 

research/digital-currencies (last visited Mar. 12, 2018), archived at https://perma.cc/TAM8-2E5P. 

345 Ali, supra note 344, at 344. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 59 

With regard to taxation, Her Majesty’s Revenue and Customs notes that “[c]ryptocurrencies have 

a unique identity and cannot therefore be directly compared to any other form of investment 

activity or payment mechanism.”346 The taxability of income received from cryptocurrencies is 

dependent upon the “activities and parties involved.”347 Value added tax (VAT) (approximately 

equivalent to US sales tax) is only chargeable from suppliers for any goods or services sold in the 

UK in exchange for cryptocurrency.348 

Corporate tax rules apply to businesses for the profits or losses in currency exchanges, which 

includes cryptocurrencies. HM Revenue and Customs has stated, “[f]or the tax treatment of virtual 

currencies, the general rules on foreign exchange and loan relationships apply. We have not at this 

stage identified any need to consider bespoke rules.” 349 Any company that enters into transactions 

that involves cryptocurrencies are thus treated in the same manner as regular transactions under 

the current corporate tax rules, and any gains made are taxed accordingly. 

For unincorporated businesses, income tax is chargeable to the profits and losses that can be 

attributed to cryptocurrency transactions.350 The UK also taxes the earnings of transactions in 

which a gain is realized after a transaction with cryptocurrencies if an individual user buys and 

sells coins as an investor.351 Such gains fall within capital gains tax, and this tax is chargeable to 

any gain made that involves a cryptocurrency. 

II. Non-EU Members 

Albania 

On July 13, 2017, the Bank of Albania declared that the legal and regulatory framework then in 

place did not envisage carrying out operations with cryptocurrency in Albania and users were 

exposed to certain risks. The Bank noted that because of the high degree of anonymity, transactions 

in such currency may be misused for criminal activities, including money laundering, terrorism 

financing, or the smuggling of goods. The Bank urged the Albanian public to be mature and 

responsible in the administration of the savings or liquidity they possess, while national and 

international stakeholders intensively work to adequately regulate and 

supervise cryptocurrency.352

 

346 HM Revenue & Customs, Revenue and Customs Brief 9 (2014): Bitcoin and Other Cryptocurrencies (Mar. 3, 

2014), https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-othercryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies, archived at 

https://perma.cc/MP2E-GQKV. 

347 Id. 

348 Id. 

349 Id. 

350 Id. 

351 Id. 

352 Press Release, Bank of Albania, Risks Associated with the Use of Virtual Currency (July 13, 2017), 

https://www.bankofalbania.org/Press/On_the_risks_associated_with_the_use_of_virtual_currency.html, archived at

https://perma.cc/86NT-2FQZ. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 60 

Armenia 

On March 1, 2018, the government of Armenia published a document stating that adoption of a 

proposed law on cryptocurrencies is not advisable given that the majority of the leading countries 

urge people to refrain from operations with cryptocurrencies.353 The document was prepared in 

response to a draft law on the development of digital technologies introduced by an opposition 

political party that would provide for the liberalization of mining activities and their exemption 

from taxes until the end of 2023.354 

Azerbaijan 

On February 12, 2018, the chairman of the board of Azerbaijan’s Central Bank, Elman Rustamov, 

stated that cryptocurrency is a very volatile instrument and urged the population to be more careful 

in dealing with cryptocurrencies.355 Earlier in January it was reported that a working group has 

been established to develop a draft law on the regulation of trade in cryptocurrencies.356

Belarus 

In Belarus the Presidential Decree on the development of the digital economy357 came into effect 

on March 28, 2018. It permits buying, selling, exchanging, and mining cryptocurrency. Most of 

the tax and currency regulations in the decree extend only to legal entities operating on the territory 

of the High Technologies Park, a special economic zone. However, individuals are permitted to 

engage in mining; acquire tokens; and exchange, sell, donate, bequeath, and otherwise dispose of 

cryptocurrency. Income generated by mining and operations in cryptocurrencies is exempt from 

taxation until 2023. The Decree also provides for the possibility of the creation of ICO operators 

in the High Technologies Park. The Park will also host a crypto-exchange and mining operators. 

 

353 Government of Armenia, Recommendations on the Draft Law on Development of Digital Technologies (Mar. 1, 

2018), http://parliament.am/draft_history.php?id=9504&Suggestion=687&do=showSuggestion (in Armenian), 

archived at https://perma.cc/4AX3-DMWC; see also The Armenian Government Rejected the Bill on the 

Development of Digital Technologies, GOLOS ARMENII (Mar. 1, 2018), http://golosarmenii.am/article/ 

63337/pravitelstvo-armenii-otverglo-zakonoproekt-%C2%ABo-razvitii-cifrovyx-texnologij%C2%BB (in Russian), 

archived at https://perma.cc/R9AP-2RMC. 

354 Artem Yerkanyan, Bitcoin of Armenian Origin, NEW TIME (Feb. 10, 2018), http://nv.am/bitkoin-armyanskogoproishozhdeniya/ (in Russian), archived at https://perma.cc/C6T9-ZFBX. 

355 Head of the Central Bank of Azerbaijan Urged Population to Be More Careful with Cryptocurrencies, SPUTNIK 

AZERBAIJAN (Jan. 15, 2018), https://ru.sputnik.az/economy/20180212/414014374/azerbajdzhan-centrobankkriptovaluta-preduprezhdenie.html (in Russian), archived at https://perma.cc/9GWW-RUST. 

356 Lada Yevgrashina, Azerbaijan Took Up Cryptocurrencies, A Bill Is Being Prepared, The Country Will Be Visited 

by Ethereum Cofounder, 1NEWS.AZ (Jan. 29, 2018), http://www.1news.az/news/azerbaydzhan-vzyalsya-zakriptovalyuty-gotovitsya-zakonoproekt-stranu-posetit-so-osnovatel-ethereum (in Russian), archived at

https://perma.cc/GC8Y-HBJD. 

357 Decree of the President of the Republic of Belarus No. 8 of Dec. 21, 2017, http://president.gov.by/ru/official_ 

documents_ru/view/dekret-8-ot-21-dekabrja-2017-g-17716/, archived at https://perma.cc/S9UM-CKRG

(in Russian). 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 61 

The Decree has not established rules for the operation of ICO operators and the crypto-exchange; 

these areas will be left to self-regulation. The exchange of cryptocurrency for fiat money must be 

approved by the National Bank. Operators of cryptocurrency exchanges will be treated as highrisk clients similar to operators of lottery games and casinos.358

Businesses operating in the Park are exempt from taxes and only have to pay 1% of their turnover 

to the government. This arrangement is guaranteed by the government to last until 2049. The 

minimum capital requirements are 1 million Belarusian rubles (approximately, US$505,000) for 

the operator of a crypto-platform and 200,000 rubles (approximately US$101,000) for the operator 

of a cryptocurrency exchange office.359

Bosnia and Herzegovina 

On January 9, 2018, the Central Bank of Bosnia and Herzegovina announced that the convertible 

mark (the currency of Bosnia and Herzegovina) is the only legal means of payment in the country, 

and it is not possible to exchange bitcoins and other cryptocurrencies for convertible mark. At the 

same time, the Bank stated that there were no plans to limit or prevent the purchase of and trading 

in virtual currencies.360

Georgia 

On December 20, 2017, the National Bank of Georgia confirmed that cryptocurrency is not legal 

tender in Georgia and is not regulated by Georgian law.361 The Bank urged Georgian citizens to 

be careful in dealing with cryptocurrencies.362 

 

 

358 Premiere of Digits, Belarus is the First in the World to Comprehensively Legalize Cryptocurrencies, RG.RU

(Mar. 26, 2018), https://rg.ru/2018/03/26/belarus-pervoj-v-mire-kompleksno-vvedet-kriptovaliuty-v-zakon.html (in 

Russian), archived at https://perma.cc/X258-2T5A. 

359 Mining Is Allowed, Bitcoin Mining Has Been Legalized in Belarus, RG.RU (Dec. 27, 2017), https://rg.ru/2017/ 

12/27/v-belarusi-legalizovali-dobychu-bitkoina.html (in Russian), archived at https://perma.cc/9DLQ-EMGX. 

360 It Is Required to Be Informed in Detail about Cryptocurrencies, The Money Invested Is Not Secured, VIJESTI.BA

(Jan. 9, 2018), https://vijesti.ba/clanak/389130/o-kriptovalutama-se-potrebno-detaljno-informirati-ulozeni-novacnije-osiguran (in Bosnian), archived at https://perma.cc/BJ7Y-Q5SJ. 

361 Press Release, National Bank of Georgia, Warning of the National Bank of Georgia (Dec. 20, 2017), 

https://www.nbg.gov.ge/index.php?m=340&newsid=3247 (in Georgian), archived at https://perma.cc/JC64-3JLP. 

362 Cryptocurrencies Outlawed in Georgia, SPUTNIK GEORGIA (Dec. 21, 2017), https://sputnik-georgia.ru/ 

economy/20171221/238633463/Kriptovaljuty-v-Gruzii-objavleny-vne-zakona.html (in Russian), archived at

https://perma.cc/N4UC-EDFP. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 62 

Gibraltar 

The government of Gibraltar recently introduced regulations governing the provision of 

Distributed Ledger Technology (DLT)363 and is currently in the process of introducing draft 

legislation to regulate initial coin offerings (ICOs). It is also considering a further regulatory 

framework that would address the sale and promotion of tokens to complement the 

DLT regulations.364

On October 12, 2017, the government of Gibraltar introduced the Financial Services (Distributed 

Ledger Technology Providers) Regulations 2017365 under the Financial Services (Investment and 

Fiduciary Services) Act.366 These Regulations entered into force on January 1, 2018.367 The 

regulatory framework covers firms that operate in or from Gibraltar and provide DLT services, 

defined in the Financial Services (Investment and Fiduciary Services) Act as “[c]arrying on by 

way of business, in or from Gibraltar, the use of distributed ledger technology for storing or 

transmitting value belonging to others.”368 The regulations require these firms to apply for a 

license from the Gibraltar Financial Services Commission to become a DLT provider.369 

DLT license holders are also required to pay an annual fee, charged at a flat rate of £10,000 

(approximately US$14,000), although an additional fee of up to £20,000 (approximately 

US$28,000) may be charged “depending upon the complexity of regulating the DLT Provider.”370 

Companies that are currently licensed under the existing financial legislation in Gibraltar and use 

DLT to 

 

363 Distributed ledger technology (DLT) is defined in the Financial Services (Investment and Fiduciary Services) Act 

1989, Act No. 49-1989, sched. 3 ¶ 10(2), http://www.gibraltarlaws.gov.gi/articles/1989-47o.pdf, archived at

https://perma.cc/MUK3-5Q3T, as “a database system in which – (a) information is recorded and consensually 

shared and synchronised across a network of multiple nodes; and (b) all copies of the database are regarded as 

equally authentic; and ‘Value’ includes assets, holdings and other forms of ownership, rights or interests, with or 

without related information, such as agreements or transactions for the transfer of value or its payment, clearing 

or settlement.” 

364 Statement on Initial Coin Offerings, Gibraltar Financial Services Commission (Sept. 22, 2017), 

http://www.gfsc.gi/news/statement-on-initial-coin-offerings-250, archived at https://perma.cc/CN3Z-A9AS. 

365 Financial Services (Distributed Ledger Technology Providers) Regulations 2017, Legal Notice No. 204/2017, 

GIBRALTAR GAZETTE No. 4401 (Oct. 12, 2017), http://www.gfsc.gi/uploads/DLT regulations 121017 (2).pdf, 

archived at https://perma.cc/QG2W-8TQ6. 

366 Financial Services (Investment and Fiduciary Services) Act 1989, §§ 5, 7, 53, 56. 

367 Financial Services (Distributed Ledger Technology Providers) Regulations 2017, reg 1(2). See also Press 

Release, Gibraltar Financial Services Commission, Distributed Ledger Technology (DLT) Regulatory Framework 

(Jan. 2, 2018), http://www.gfsc.gi/news/distributed-ledger-technology-dlt-regulatory-framework-270, archived at

https://perma.cc/7DPW-ANKK. 

368 Financial Services (Investment and Fiduciary Services) Act 1989, sched. 3, ¶ 10. 

369 Distributed Ledger Technology Regulatory Framework (DLT Framework), GIBRALTAR FINANCIAL SERVICES 

COMMISSION (Jan. 2, 2018), http://www.gfsc.gi/dlt, archived at https://perma.cc/L753-37RN. 

370 Financial Services Commission (Fees) Regulations 2016, LN 2016/071, sched. 1, http://www.gibraltarlaws. 

gov.gi/articles/2016s071.pdf, archived at https://perma.cc/7KHF-LXNJ. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 63 

improve their controls, procedures and processes will not need to obtain a separate licence 

under the DLT framework, unless the activities are not currently caught within the scope 

of the licence they hold . . . . However, if [they] are licensed as a bank, but intend to provide 

virtual currency wallets and/or services [they] will be required to obtain a licence under the 

DLT regime.371

DLT providers must comply with Gibraltar’s requirements concerning anti-money laundering and 

combatting the financing of terrorism, as well as those of any jurisdiction in which they 

also operate.372

Under the Regulations the provision of DLT services without a license is an offense, punishable 

with a fine of up to £10,000 (approximately US$14,000).373 The government of Gibraltar claims 

that the Gibraltar Financial Services Commission is the first regulator to introduce a framework 

regulating Distributed Ledger Technology (DLT).374 The aim of introducing the legislation is to 

protect consumers and the reputation of Gibraltar as a well-regulated and safe environment for 

firms that use DLT, and enable Gibraltar to prosper from the use and growth of new 

financial technology. 

The government of Gibraltar has expressed concern over the use of tokenized digital assets 

(tokens) and cryptocurrency given by companies to raise capital and bypass the traditional, 

regulated, capital-raising process required by financial institutions or venture capitalists.375 It is 

currently working to develop legislation to regulate the use of tokens, “essentially those created 

and traded using [DLT]”376 that will align with the DLT regulations,377 and expects a bill to be 

before Parliament by the second quarter of 2018.378 

 

 

371 Distributed Ledger Technology Regulatory Framework (DLT Framework), Frequently Asked Questions, 

GIBRALTAR FINANCIAL SERVICES COMMISSION, supra note 369. 

372 Id. 

373 Financial Services (Penalty Fees) Regulations 1993, LN 1993/147, sched., http://www.gibraltarlaws.gov.gi/ 

articles/1993s147.pdf, archived at https://perma.cc/A58V-PQ2C. 

374 Press Release, Gibraltar Financial Services Commission, Distributed Ledger Technology (DLT) Regulatory 

Framework (Jan. 2, 2018), http://www.gfsc.gi/news/distributed-ledger-technology-dlt-regulatory-framework-270, 

archived at https://perma.cc/7DPW-ANKK. 

375 Gibraltar Financial Services Commission, Statement on Initial Coin Offerings (Sept. 22, 2017), 

http://www.fsc.gi/ news/statement-on-initial-coin-offerings-250, archived at https://perma.cc/HD3M-N6UB. 

376 Press Release, HM Government of Gibraltar and Ministry of Commerce, HM Government of Gibraltar and the 

Gibraltar Financial Services Commission Announce Plans for Token Legislation (Feb. 12, 2018), http://www.gfsc. 

gi/news/hm-government-of-gibraltar-and-the-gibraltar-financial-services-commission-announce-plans-for-tokenlegislation-272, archived at https://perma.cc/9FVC-L4Z8. 

377 Distributed Ledger Technology Regulatory Framework (DLT Framework), GIBRALTAR FINANCIAL SERVICES 

COMMISSION, supra note 369. 

378 Press Release, HM Government of Gibraltar and Ministry of Commerce, supra note 376. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 64 

Guernsey 

Guernsey is a Crown Dependency of the United Kingdom and is a low-tax jurisdiction with a large 

financial sector. In 2014, the Guernsey Financial Services Commission, which is responsible for 

supervising and regulating licensees from the banking, fiduciary, insurance, and investment 

sectors,379 issued a statement that the Commission was adopting a cautionary approach towards 

“virtual currencies” and may refuse application to register financial service businesses if virtual 

currency is involved.380 Specifically, 

[t]he Commission has a policy of encouraging innovation. Virtual currencies are an area of 

innovation which the Commission continues to monitor closely while recognising that 

there are currently significant risks associated with them. In the light of those risks, the 

Commission will adopt a cautious approach and may well refuse applications to register 

financial services business where the use of virtual currency is involved. However, this 

approach will be regularly reviewed in the light of international developments.381

In 2015, a report commissioned by the Guernsey government noted that the major drawback for 

cryptocurrencies was the difficulty in complying with international anti-money laundering 

standards.382 Three years after the issuance of the first statement, on February 27, 2018, the 

Guernsey Financial Services Commission issued a further statement that it believes there are 

“significant risks in the use of virtual or crypto currencies especially for retail customers. 

Nevertheless, we understand that professional investors with a high risk appetite may wish to 

invest in this developing sector.”383 

The Financial Services Commission has stated that it will assess any application on its individual 

merits against the criteria used for asset types or structures, as cryptocurrencies “could interact 

with [the countries] regulatory laws384 in a number of ways.”385 Applicants must demonstrate how 

they will comply with the laws and rules to counter financial crime and terrorist financing, with 

 

379 About Us, GUERNSEY FINANCIAL SERVICES COMMISSION, https://www.gfsc.gg/commission/about-us (last visited 

Mar. 20, 2018), archived at https://perma.cc/C9FR-KUTK. 

380 Virtual Currencies, GUERNSEY FINANCIAL SERVICES COMMISSION (Feb. 11, 2014), https://www.gfsc.gg/news/ 

article/virtual-currencies, archived at https://perma.cc/JT8Q-7PMS. 

381 Id. 

382 PRICEWATERHOUSECOOPERS, GUERNSEY COMMERCE AND EMPLOYMENT, STATES OF GUERNSEY: A STRATEGIC 

VISION FOR FINTECH 28, (July 2015), https://www.gov.gg/CHttpHandler.ashx?id=96797&p=0, archived at

https://perma.cc/9CRX-ESAC. 

383 Virtual Currencies, Crypto Currencies and Initial Coin Offerings (“ICO”), GUERNSEY FINANCIAL SERVICES 

COMMISSION (Feb. 27, 2014), https://www.gfsc.gg/news/article/virtual-currencies-crypto-currencies-and-initialcoin-offerings-ico, archived at https://perma.cc/3WTX-QGQJ. 

384 Laws, regulations, and codes that govern the financial sector and could have an impact on a business using or 

offering cryptocurrencies are available at: Legislation and Guidance, GUERNSEY FINANCIAL SERVICES COMMISSION,

https://www.gfsc.gg/commission/legislation-and-guidance (last visited Mar. 20, 2018), archived at

https://perma.cc/3VKH-HXWN. 

385 Virtual Currencies, Crypto Currencies and Initial Coin Offerings (“ICO”), GUERNSEY FINANCIAL SERVICES 

COMMISSION, supra note 383383. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 65 

particularly regard to establishing the identity of both investors and beneficial owners.386 The 

Commission has stated that it would continue to be cautious to approve applications for initial coin 

offerings that could later be traded on the secondary market due to the risk of fraud and money 

laundering, along with applications for any kinds of digital currency exchanges. 

Iceland 

The legality of cryptocurrencies in Iceland is unclear. In 2014, the Central Bank of Iceland, in 

anticipation of the launch of the Icelandic peer-to-peer cryptocurrency Auroracoin,387 announced 

that bitcoin was not a recognized currency and even if it was, purchases of bitcoins would still be 

illegal as such purchases would have violated the foreign transactions restrictions then in place.388

The Icelandic Foreign Exchange Act then specified that Icelandic currency could not leave the 

country.389 A purchase of an overseas-based cryptocurrency would have been a violation of the 

Act, as the cryptocurrency would have been considered purchased from abroad.390

Since then, however, Iceland has eased its foreign exchange and asset control rules and now allows 

for cross-border transactions of Icelandic krónur.391 However, according to the Icelandic Central 

Bank, restrictions on so-called offshore króna assets and special reserve requirements for specified 

investments in connection with new inflows of foreign currency will remain in place.392 For 

example, there is still a requirement to notify the Icelandic Central Bank of international purchases 

of Icelandic krónur and derivative transactions, and rules also require a special reserve when there 

is an inflow of a foreign currency into Iceland.393 Restrictions will also remain in place on “i) 

 

386 Id. 

387 See Elin Hofverberg, Iceland: National Digital Currency Auroracoin Launched, GLOBAL LEGAL MONITOR (Aug. 

12, 2014), http://www.loc.gov/law/foreign-news/article/iceland-national-digital-currency-auroracoin-launched/, 

archived at https://perma.cc/DSJ3-XUF7. 

388 Press Release, Central Bank of Iceland, Significant Risk Attached to Use of Virtual Currency (Mar. 19, 2014), 

https://www.cb.is/publications-news-and-speeches/news-and-speeches/news/2014/03/19/Significant-risk-attachedto-use-of-virtual-currency/, archived at https://perma.cc/H5BR-TJSC. 

389 Act No. 87/1992 on Foreign Exchange, as in force in 2014. 

390 See Press Release, Central Bank of Iceland (2014), supra note 388. 

391 Lög um gjaldeyrismál (1992 nr. 87 17. Nóvember) [Foreign Exchange Act (no. 87/1992 )], as amended through

105/2016, http://www.althingi.is/lagas/148a/1992087.html, archived at https://perma.cc/9DXZ-9WVD, unofficial 

translation available at https://www.government.is/media/fjarmalaraduneyti-media/media//frettatengt2016/Englishtranslation-of-the-Foreign-Exchange-Act---Nov-2016.pdf, archived at https://perma.cc/YXV2-YKGL; see also

Press Release, Central Bank of Iceland, Central Bank of Iceland Concludes Agreement with Owners of Offshore 

Króna Assets (Mar. 12, 2017), https://www.cb.is/publications/news/news/2017/03/12/Central-Bank-of-Icelandconcludes-agreement-with-owners-of-offshore-krona-assets/, archived at https://perma.cc/J34F-4K7K; Elin 

Hofverberg, Iceland: Central Bank Eases Currency Restrictions, Ends Financial Crisis Capital Controls, GLOBAL 

LEGAL MONITOR (May 16, 2017), http://www.loc.gov/law/foreign-news/article/iceland-central-bank-eases-currencyrestrictions-ends-financial-crisis-capital-controls/, archived at https://perma.cc/WWA6-CVNR. 

392 Press Release, Central Bank of Iceland, New Rules on Foreign Exchange (Mar. 12, 2017), https://www.cb.is/ 

publications/news/news/2017/03/12/New-Rules-on-Foreign-Exchange-/, archived at https://perma.cc/6Y8E-G5TP.

393 Central Bank of Iceland, Rules on Foreign Exchange arts. 3, 8, 12, 14 & 17; Central Bank of Iceland, Rules 

Amending the Central Bank of Iceland Rules No. 490/2016 on Special Reserve Requirements for New Foreign 

Currency Inflows, with Subsequent Amendments (Mar. 12, 2017), https://cb.is/library/Skraarsafn---EN/Capital-
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 66 

derivatives trading for purposes other than hedging; ii) foreign exchange transactions carried out 

between residents and non-residents without the intermediation of a financial undertaking; and iii) 

in certain instances, foreign-denominated lending by residents to non-residents.”394 It is possible 

that trade and investments in cryptocurrencies would be limited by these regulations. Because 

cross-border transactions with Icelandic krónur are allowed, however, bitcoins would not be 

limited for this reason alone.395 

The Central Bank of Iceland has not commented on whether cryptocurrency transactions are 

transactions “carried out between residents and nonresidents without the intermediation of a 

financial undertaking.”396

The Icelandic Tax Authority has issued guidelines for filing income taxes for the tax year 2017, 

requiring that bitcoins be included under section 4.4, “Aðrar eignir áður ótaldar” (Other 

Assets).397 The value of cryptocurrency holdings is based on the prevailing exchange rate on 

December 31 of the tax year.398 

Reportedly, members of Parliament are considering adopting legislation that would tax companies 

that mine cryptocurrencies in Iceland, based on their usage of natural resources (electricity).399

Isle of Man 

The Isle of Man is a Crown Dependency of the United Kingdom and is a low-tax jurisdiction with 

a robust online gambling industry and burgeoning financial sector. Referred to in some reports as 

“Bitcoin Island,” many establishments across the Island already accept bitcoins as payment 

alongside its national currency.400 

 

surveillance/Enska_Reglur um breytingu á reglum um bindingu reiðufjár 11032017-2 enACB_Final.pdf, archived at

https://perma.cc/U55Y-FXLF. 

394 Press Release, Central Bank of Iceland (2017), supra note 392.

395 Compare Press Release, Central Bank of Iceland (2014), supra note 388. 

396 For an update on capital controls regulation see Progress of the Plan for Removal of Capital Controls, 

GOVERNMENT.IS (Oct. 25, 2017), https://www.government.is/library/Files/greinargerd_okt17-2_enska.pdf, archived 

at https://perma.cc/3SMS-QB2Z. 

397 Ríkisskattstjóri (RSK), Leiðbeiningar Skattframtal einstaklinga [Guidelines on Tax Return for Individuals] 15 

(2018), https://www.rsk.is/media/baeklingar/rsk_0801_2018.is.pdf, archived at https://perma.cc/65VK-7N2K. 

398 Id. 

399 Stan Higgins, Icelandic Lawmaker Floats Bitcoin Mining Tax, COINDESK (Feb. 12, 2018), https://www.coindesk. 

com/icelandic-lawmaker-floats-bitcoin-mining-tax/, archived at https://perma.cc/WZ2B-BTXD. 

400 Cahal Milmo, Bitcoin: How The Isle of Man is Leading a Cryptocurrency Revolution, INDEPENDENT (London) 

(Jan. 3, 2016), https://www.independent.co.uk/news/uk/home-news/bitcoin-how-the-isle-of-man-is-sparking-acryptocurrency-revolution-a6794756.html, archived at https://perma.cc/NUY8-XTS4. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 67 

The Isle of Man was an early adopter of legislation to regulate cryptocurrencies within its 

jurisdiction. The Proceeds of Crime Act 2008 was amended in 2015 to include virtual currency 

businesses within its regulated sector as a “designated business,”401 specifically those that are in 

the business of issuing, transmitting, transferring, providing safe custody or storage of, 

administering, managing, lending, buying, selling, exchanging or otherwise trading or 

intermediating convertible virtual currencies, including crypto-currencies or similar 

concepts where the concept is accepted by persons as a means of payment for goods.402

This amendment brought businesses that engaged in these activities, including those that wish to 

offer initial coin offerings (ICO),403 within the ambit of its anti-money laundering laws,404

requiring the use of know-your-customer practices, such as collecting identifying information, 

knowing the beneficial owner of any currency, and record keeping and reporting requirements for 

certain transactions.405 These businesses are overseen by the Isle of Man Financial Services 

Authority to ensure compliance with these laws.406

The Isle of Man distinguishes between four different types of online currencies: 

Digital currency refers to any electronic representation of a fiat currency and this can 

include representations of virtual currency. 

Virtual currency is a narrower asset and is a digital representation of value which can be 

traded digitally. The nature of a virtual currency means that it does not need to be centrally 

controlled or administered. Virtual currency can be either convertible or non-convertible. 

Convertible virtual currency, which includes crypto-currency, can be converted into a fiat 

currency, either directly, or through an exchange. For a currency to be convertible, there 

does not need to be set rate or an established benchmark, but that merely a market exists 

and the ownership rights can be transferred from one person to another, whether for 

consideration or not. 

Non-convertible virtual currency, once purchased, cannot be transferred to another person 

and cannot be redeemed for fiat currency, either directly or through an exchange. (Note 

 

401 Isle of Man Financial Services Authority, Questions & Answers in Respect of Persons Seeking to Launch an 

Initial Coin Offering in or from The Island, at 1, https://www.iomfsa.im/media/2365/icoguidanceforapplicants.pdf

(last visited Apr. 18, 2018), archived at https://perma.cc/PUQ3-ZLNM. 

402 Proceeds of Crime (Business in the Regulated Sector) Order 2015, 2015/0073, Sched., art. 1(1)(mm), 

https://www.gov.im/media/470633/proceedsofcrime-businessintheregulatedsector-order2015-final.pdf, archived at

https://perma.cc/M83K-C2JM, amending Proceeds of Crime Act 2008, No. 13 of 2008, Sched. 4, 

http://www.legislation.gov.im/cms/images/LEGISLATION/PRINCIPAL/2008/2008-

0013/ProceedsofCrimeAct2008_6.pdf, archived at https://perma.cc/JX8R-EHNY. 

403 Isle of Man Financial Services Authority, Questions & Answers, supra note 401. 

404 Designated Businesses (Registration and Oversight) Act 2015 – AML/CFT Handbook (last updated Jan. 2018), 

ISLE OF MAN FINANCIAL SERVICES AUTHORITY, https://www.iomfsa.im/amlcft/amlcft-requirements-andguidance/designated-businesses/, archived at https://perma.cc/S3X6-T58G. 

405 Isle of Man Financial Services Authority, Virtual Currency Business: Sector Specific AML/CFT Guidance Notes

(Oct. 2016), available at https://www.iomfsa.im/media/1606/virtualcurrencyguidance.pdf, archived at

https://perma.cc/4UWC-S4BK. 

406 Designated Businesses (Registration and Oversight) Act 2015 – AML/CFT Handbook, supra note 404. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 68 

that the Schedule 4 to POCA [Proceeds of Crime Act] definition does not extend to nonconvertible currency businesses).407

The Designated Business (Registration and Oversight) Act 2015408 provides that virtual currency 

businesses are designated businesses, requiring such businesses to register with, and be overseen 

by, the Isle of Man Financial Services Authority.409 Virtual currency businesses are defined in the 

Act as those that are in 

the business of issuing, transmitting, transferring, providing safe custody or storage of, 

administering, managing, lending, buying, selling, exchanging or otherwise trading or 

intermediating convertible virtual currencies, including crypto-currencies or similar 

concepts where the concept is accepted by persons as a means of payment for goods or 

services, a unit of account, a store of value or a commodity[.]410

Businesses registered under this Act are required to submit annual returns that show compliance 

with anti-money laundering laws. The register of companies that engage in cryptocurrencies and 

operate from the Island has been created using blockchain technology to store the data, making the 

Isle of Man the first government to use this type of technology to store official data, according 

to Bloomberg.411 

For ICOs, the FSA has stated that it will not register an applicant if the ICO provides tokens that 

do not offer any benefit to the purchaser other than the token itself, because 

[s]uch characteristics are generally considered by the FSA to pose an unacceptably high 

risk that the money raised from the ICO could be used for unanticipated and illegal 

purposes, as well as posing a risk to consumers. It is because of these risks that it is the 

policy of the FSA to refuse to register this type of business.412 

The Isle of Man recently amended its online gambling laws to enable operators to accept 

virtual currencies.413

 

407 Isle of Man Financial Services Authority, Virtual Currency Business: Sector Specific AML/CFT Guidance Notes, 

supra note 405, at 4. 

408 Designated Business (Registration and Oversight) Act 2015, No. 9 of 2015, https://legislation.gov.im/cms/ 

images/LEGISLATION/PRINCIPAL/2015/2015-0009/DesignatedBusinessesRegistrationandOversight 

Act2015_6.pdf, archived at https://perma.cc/SMR3-LYKL. 

409 Designated Businesses (Registration and Oversight) Act 2015 – AML/CFT Handbook, supra note 404. 

410 Designated Business (Registration and Oversight) Act 2015, No. 9 of 2015, sched. 1(1), https://legislation.gov. 

m/ cms/images/LEGISLATION/PRINCIPAL/2015/2015-0009/DesignatedBusinessesRegistrationandOversight 

Act2015_6.pdf, archived at https://perma.cc/SMR3-LYKL. 

411 Jeremy Kahn, Greetings From Bitcoin Island, BLOOMBERG MARKETS (Sept. 7, 2015), https://www.bloomberg. 

com/news/features/2015-09-07/isle-of-man-tax-haven-with-tailless-cats-becomes-bitcoin-hub, archived at

https://perma.cc/4MMD-C3CH. 

412 Isle of Man Financial Services Authority, Questions & Answers, supra note 401. 

413 Online Gambling (Amendments) Regulations 2016, SD 2016/0341, reg. 11(1)–(2), https://www.gov.im/media/ 

1354648/online-gambling-amendments-regulations-2016.pdf, archived at https://perma.cc/TJ24-UKYF. See also

Isle of Man Gambling Supervision Commission, AML/CFT Guidance for Virtual Currencies (May 2017), available 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 69 

Jersey 

Jersey is a Crown Dependency of the United Kingdom and is a low-tax jurisdiction with a large 

financial sector. The jurisdiction issued a consultation on the regulation of cryptocurrencies in 

2015, noting “[t]he creation of a business-friendly framework that encourages innovation, jobs and 

growth in both the financial services and digital sectors is a priority for the Government of 

Jersey.”414 The majority response to the consultation was that cryptocurrencies should be regulated 

only to the extent of ensuring compliance with anti-money laundering laws and to counter the 

financing of terrorism.415 The government or Jersey rejected “a full prudential and conduct of 

business regime” for cryptocurrencies, as it considered it was too early to issue such regulations 

given that cryptocurrencies are in the early stages of development and that doing so could be overburdensome, and restrict development and innovation.416 

The result of the consultation was the issuance of a document by the Chief Minister’s Department 

explaining Jersey’s policy position regarding the regulation of virtual currencies. According to 

the document, 

[u]ltimately, the aim of this policy is to further enhance Jersey’s proposition as a world 

leading Fintech jurisdiction . . . [and] to outline Jersey’s commitment to creating an 

environment that encourages confidence and innovation in the digital sector whilst 

protecting the Island from the most prominent money laundering and terrorist financing 

risks that are presented by virtual currencies in their current form.417

Jersey’s anti-money laundering laws and counterterrorism financing laws were extended to cover 

cryptocurrencies through measures that entered into force on September 26, 2016.418 “Virtual 

currencies” are defined in the Proceeds of Crime Act as a currency rather than a commodity, thus 

enabling it to fall within the current regulatory framework and be regulated by the Jersey Financial 

Services Commission.419 Specifically, the Act defines “virtual currency” as 

 

at https://www.gov.im/media/1356960/aml-guidance-notes-virtual-currencies.pdf, archived at

https://perma.cc/9856-6MJ2. 

414 Chief Minister’s Department, Regulation of Virtual Currency: Consultation Paper (July 9, 2015; presented to the 

States July 10, 2015), available at http://www.statesassembly.gov.je/assemblyreports/2015/r.80-2015.pdf, archived 

at https://perma.cc/K5PY-GZRP. 

415 Chief Minister’s Department, Regulation of Virtual Currency Policy Document ¶ 1.1 (Oct. 21, 2015), available at 

https://www.gov.je/SiteCollectionDocuments/Government and administration/P Regulation of Virtual Currency 

20151021 GP.PDF, archived at https://perma.cc/9QBL-YQNT. 

416 Id. ¶ 1.2. 

417 Id. at 2. 

418 Proceeds of Crime (Miscellaneous Amendments) (Jersey) Regulations 2016, R&O 63/2016, https://www.jersey 

law.je/laws/enacted/PDFs/RO-063-2016.pdf, archived at https://perma.cc/F2H5-2KNV; Proceeds of Crime 

(Supervisory Bodies) (Virtual Currency Exchange Business) (Exemption) (Jersey) Order 2016, REVISED LAWS OF 

JERSEY, https://www.jerseylaw.je/laws/revised/PDFs/08.785.80.pdf, archived at https://perma.cc/A8W9-7753. 

419 Proceeds of Crime Act 1999, Sched. 2, Part B, ¶ 9, https://www.jerseylaw.je/laws/revised/Pages/08.780.aspx#_ 

Toc468266188, archived at https://perma.cc/K2YU-7KA4. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 70 

(4) . . . any currency which (whilst not itself being issued by, or legal tender in, any 

jurisdiction) – 

(a) digitally represents value; 

(b) is a unit of account; 

(c) functions as a medium of exchange; and 

(d) is capable of being digitally exchanged for money in any form.420

The term “virtual currency exchange” is defined in the Act as “the exchange of virtual currency 

for money in any form, or vice versa,” with the clarification that “a reference to providing a service 

to third parties shall not include a company’s providing that service to a connected company.”421 

Virtual currencies were also brought within the ambit of the Money Laundering (Jersey) Order 

2008,422 which requires individuals operating a “Money Service Business” to register with the 

Jersey Financial Services Commission and comply with the jurisdiction’s anti-money laundering 

and counterterrorism financing laws if they have an annual turnover greater than £150,000 

(approximately US$210,000).423 Subject to certain exemptions, these laws require such businesses 

to adopt policies and procedures to prevent and detect money laundering and terrorist financing 

and appoint a money laundering compliance officer and reporting officer, along with ensuring that 

record keeping and customer due diligence measures are implemented,424 such as know-yourcustomer measures to one-off transactions greater than €1,000 (approximately US$1,220).425 

Businesses that trade in goods and receive payments of €15,000 (approximately US$18,500) and 

above per transaction in cryptocurrency are classed as “high value dealers” under the Proceeds of 

Crime Act 1999.426 Such dealers must be registered and supervised by the Jersey Financial 

Services Commission and comply with Jersey’s money laundering and counter terrorist 

financing laws.427 

 

420 Id. Sched. 2, Part B, ¶ 4(4). 

421 Id. Sched. 2, Part B, ¶ 9(2)(a)–(b). 

422 Money Laundering (Jersey) Order 2008, REVISED LAWS OF JERSEY, https://www.jerseylaw.je/laws/revised/ 

Pages/08.780.30.aspx, archived at https://perma.cc/6YXY-JJW6. 

423 Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, REVISED LAWS OF JERSEY, https://www.jersey 

law.je/laws/revised/PDFs/08.785.pdf, archived at https://perma.cc/U5CQ-EQGY; Money Laundering (Jersey) Order 

2008, REVISED LAWS OF JERSEY, https://www.jerseylaw.je/laws/revised/Pages/08.780.30.aspx, archived at

https://perma.cc/PT5L-A4X6. 

424 Proceeds of Crime Act 1999, Sched. 2, Part B, ¶ 3 (defining customer due diligence measures). 

425 Chief Minister’s Department, Regulation of Virtual Currency Policy Document, supra note 415, ¶ 1.14. See also 

Money Laundering (Jersey) Order 2008, REVISED LAWS OF JERSEY, https://www.jerseylaw.je/laws/revised/ 

Pages/08.780.30.aspx, archived at https://perma.cc/5QDP-PE8Y. 

426 Proceeds of Crime (Jersey) Law 1999, Sched. 2, Part B, ¶ 4, https://www.jerseylaw.je/laws/revised/Pages/ 

08.780.aspx#_Toc468266188, archived at https://perma.cc/K2YU-7KA4. 

427 Id. Sched. 2, Part B, ¶ 4. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 71 

At the time of the consultation, the government considered the regulation of distributed ledger and 

blockchain technology, but considered that this area was evolving too quickly to regulate 

effectively.428 It opted to actively monitor these areas for development and consideration of 

regulation in the future.429 

Kosovo 

The Central Bank of Kosovo has issued several warnings about the use of cryptocurrencies. The 

latest, published on January 31, 2018, reminded persons that virtual money is not recognized as 

legal tender and that financial losses may result from investing in cryptocurrencies. The Bank also 

noted the unreliability of virtual platforms for trading in cryptocurrencies and their susceptibility 

to cybertheft. The Bank said it is considering adapting recommendations made internationally to 

limit the anonymous use of cryptocurrencies and to enact rules to combat money laundering and 

terrorist financing via such currencies.430 

On February 27, 2018, the Bank announced the establishment of a permanent advisory group for 

evaluating and addressing regulatory challenges related to virtual money.431

Liechtenstein 

Liechtenstein has included “virtual currencies” in the latest amendment of its Due Diligence 

Act.432 The due diligence obligations codified in the Act serve to combat money laundering, 

organized crime, and terrorist financing and apply to providers of exchange services, among 

others. An “exchange office (bureau de change)” is defined as any “natural or legal person whose 

activities consist in the exchange of legal tender at the official exchange rate or of virtual currencies 

against legal tender and vice versa.”433 “Virtual currencies” are defined as “digital monetary units, 

which can be exchanged for legal tender, used to purchase goods or services or to preserve value 

and thus assume the function of legal tender.”434

 

428 Chief Minister’s Department, Regulation of Virtual Currency Policy Document, supra note 415, ¶ 1.34. 

429 Id. ¶ 1.36. 

430 Press Release, Central Bank of the Republic of Kosovo, Warning on the Use of Virtual Money (Jan. 31, 2018), 

https://bqk-kos.org/index.php?id=104&l=1487 (in Albanian), archived at https://perma.cc/HG65-TT9E. 

431 Press Release, Central Bank of the Republic of Kosovo, The CBK Executive Board Established a Permanent 

Body for Evaluating and Addressing Regulatory Challenges Related to Virtual Money (Feb. 27, 2018), https://bqkkos.org/index.php?id=104&l=1496 (in Albanian), archived at https://perma.cc/P5HM-E36F. 

432 Gesetz über berufliche Sorgfaltspflichten zur Bekämpfung von Geldwäscherei, organisierter Kriminalität und 

Terrorismusfinanzierung [Sorgfaltspflichtgesetz] [SPG] [Act on Professional Due Diligence to Combat Money 

Laundering, Organized Crime, and Terrorist Financing [Due Diligence Act] [DDA]], Dec. 11, 2008, 

LANDESGESETZBLATT NUMMER [LGBL.-NR.] [OFFICIAL LAW GAZETTE NO.] 2009.047, as amended, art. 2, 

para. 1(l), https://www.gesetze.li/konso/pdf/2009047000?version=19, archived at http://perma.cc/LT2C-3BNS, 

unofficial English translation available at http://www.regierung.li/media/medienarchiv/952_1_17_11_2017_ 

en_636524807784985165.pdf?t=5, archived at http://perma.cc/ND5C-4G8T. 

433 Id. art. 2, para. 1(l). 

434 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 72 

The Financial Market Authority of Liechtenstein (Finanzmarktaufsicht, FMA) has issued a 

factsheet on virtual currencies like bitcoin.435 It stated that virtual currencies are generally defined 

as a “digital representation of a (cash equivalent) value that is neither issued by a central bank or 

a public authority” and do not constitute fiat currency (legal tender). However, it is pointed out 

that virtual currencies are similar to fiat currencies when they are used as a means of payment or 

traded on an exchange. The production and the use of virtual currencies as a means of payment are 

currently not subject to any licensing requirement governed by specialized legislation. However, 

the FMA states that depending on the specific design of the business model, licensing requirements 

might apply. Business models are assessed on a case-by-case basis.436 In particular, due diligence 

requirements according to the Due Diligence Act may apply. 

The FMA has also issued a factsheet on ICOs.437 Depending on the specific design and the function 

of the tokens, tokens may constitute financial instruments if they have characteristics of equity 

securities or other investments. Activities relating to financial instruments are subject to licensing 

by the FMA.438 The FMA assesses ICOs on a case-by-case basis.439

Macedonia 

On September 28, 2016, the National Bank of Macedonia issued a warning against 

cryptocurrencies.440 The Bank reminded Macedonian residents that they are not allowed to have 

bank accounts or securities abroad, with certain exceptions, and therefore, investments by residents 

in cryptocurrencies are also not allowed. The Bank also underscored the possibility of losing 

money on cryptocurrency investments due to devaluation, theft, the poor functioning of 

cryptocurrency exchanges, and possible links to criminal activities.441

 

 

435 FINANZMARKTAUFSICHT [FMA] [FINANCIAL MARKET AUTHORITY], FACT SHEET ON VIRTUAL CURRENCIES

(Feb. 16, 2018), https://www.fma-li.li/files/fma/fma-fact-sheet-virtual-currencies.pdf, archived at

http://perma.cc/X87T-3KT9. 

436 Id. 

437 FMA, FACT SHEET ON INITIAL COIN OFFERINGS (Sept. 10, 2017), https://www.fma-li.li/files/fma/fma-factsheetico.pdf, archived at http://perma.cc/Z3L3-B3D5. 

438 Id. at 2. 

439 What Needs to Be Observed, FMA, https://www.fma-li.li/en/regulation/fintech-in-liechtenstein/what-needs-to-beobserved.html (last visited Mar. 19, 2018), archived at http://perma.cc/KC3S-U8H7. 

440 Announcement of the National Bank of the Republic of Macedonia (NBRM) (Sept. 28, 2016), http://nbrm.mk/nsnewsarticle-soopshtieniie_na_nbrm_28_9_2016.nspx (in Macedonian), archived at https://perma.cc/A2TD-BGY8. 

441 NBRM: Macedonian Regulations Do Not Allow Investment in Cryptocurrencies, VECER (Sept. 28, 2016), 

https://vecer.mk/ekonomija/nbrm-makedonskata-regulativa-ne-dozvoluva-investiranje-vo-kripto-valuti (in 

Macedonian), archived at https://perma.cc/QUV5-KYFW. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 73 

Moldova 

On February 15, 2018, the National Bank of Moldova issued a statement442 recommending that 

Moldovans be as cautious as possible in deciding whether to invest in crypto-assets, given the 

technical characteristics of cryptocurrency, its high volatility, and the absence of any regulation 

that would protect investors.443 

In Transnistria, a breakaway territory of Moldova, a law was passed on January 31, 2018, to 

legalize mining activities.444 It provides for creation of free economic zones for mining purposes. 

The authorities of the self-proclaimed republic promise exemption from taxes, duty-free import 

and export of mining equipment, and assistance with energy supply.445

Montenegro 

In November 2014 the Central Bank of Montenegro reportedly issued a warning saying that 

individuals may own bitcoins at their own risk, although virtual currencies are not legal tender 

in Montenegro.446

 

 

442 Press Release, National Bank of Moldova, NBM Warns about High Risks of Investing in Cryptocurrencies (Feb. 

15, 2018), http://www.bnm.md/ru/content/nbm-preduprezhdaet-chto-investicii-v-kriptovalyuty-predpolagayutvysokie-riski (in Russian), archived at https://perma.cc/ZT9T-5X4Z. 

443 National Bank Warns Moldovans of Reckless Risks, SPUTNIK MOLDOVA (Feb. 15, 2018), https://ru.sputnik.md/ 

economics/20180215/17319739/Nacbank-Moldova-preduprezhdaet-opasnosti-riski.html (in Russian), archived at

https://perma.cc/F5QW-4Q6C. 

444 Law of the Pridenstrovskaia Moldavskaia Respublika No. 39-3-VI of Feb. 9, 2018, on the Development of 

Information Blockchain Technologies in the Pridenstrovskaia Moldavskaia Respublika, available at

http://www.minjust.org/oo/Publication.nsf/805c7c76d1c2ddb8c2258213005be80f/1607b43c42a8b926c225822f0035

0545!OpenDocument (in Russian), archived at https://perma.cc/L4MA-T7S9. 

445 Will There Be a Circulation of Cryptocurrency in Transnistria?, SPUTNIK MOLDOVA (Jan. 31, 2018), 

https://ru.sputnik.md/economics/20180215/17319739/Nacbank-Moldova-preduprezhdaet-opasnosti-riski.html (in 

Russian), archived at https://perma.cc/FQ64-54WD. 

446 CBCG: You Can Possess Bitcoins but at Your Own Risk, VIJESTI (Nov. 30, 2014), http://www.vijesti.me/vijesti/ 

cbcg-mozete-posjedovaati-bitkoine-ali-na-sopstveni-rizik-807566 (in Montenegrin), archived at

https://perma.cc/SNH7-6MKK. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 74 

Norway 

The Norwegian Financial Supervisory Authority issued warnings against cryptocurrencies both in 

2013 and 2018.447 It has also warned against initial coin offerings (ICOs).448 Both warnings came 

as a result of warnings by the European Supervisory Authority, ESMA.449

The Central Bank of Norway has not recognized cryptocurrencies, but it also does not prohibit its 

staff from owning or investing in them as per ethical guidelines from November 23, 2012.450 

The Norwegian Tax Authority has issued a principle statement that bitcoins will be treated as 

capital property, at least for tax purposes.451 Capital property legislation allows deductions for 

losses and taxes winnings.452 Although travel currencies are exempted from the capital gains tax, 

bitcoins are not as the bitcoin and other virtual currencies are not recognized as travel currencies.453 

 

447 Press Release, Finanstilsynet, Advarsel til forbrukere - informasjon om virtuelle valutaer [Warnings to Users – 

Information on Virtual Currencies] (Dec. 13, 2013), https://www.finanstilsynet.no/nyhetsarkiv/nyheter/2013/ 

advarsel-til-forbrukere---informasjon-om-virtuelle-valutaer/, archived at https://perma.cc/Z2MK-EGWD; Press 

Release, Finanstilsynet, Finanstilsynet advarer forbrukere om kryptovaluta [Financial Supervisory Authority Warns 

Users on Cryptocurrencies] (Feb. 28, 2018), https://www.finanstilsynet.no/markedsadvarsler/2018/finanstilsynetadvarer-forbrukere-om-kryptovaluta/, archived at https://perma.cc/9N75-VE5Y. 

448 Press Release, Finanstilsynet, Initial Coin Offerings (ICO-er) – advarsel til investorer og foretak [Initial Coin 

Offerings – Warnings to Investors and Companies] (Nov. 20, 2017), https://www.finanstilsynet.no/markeds 

advarsler/2017/initial-coin-offerings-icoer---advarsel-til-investorer-og-foretak/, archived at https://perma.cc/9ZRMRSJB. 

449 Press Release, Finanstilsynet (2018), supra note 447; Press Release, Finanstilsynet (2017), supra note 448. 

450 Central Bank ethical guidelines are available at Norges Bank, Utfyllende Etiske Regler fo Ansatte i Norges 

sentralbankvirksomhet [Additional Ethical Rules for Employees of Norway’s Central Bank] (Sept. 10, 2014), 

https://www.norges-bank.no/Om-Norges-Bank/Mandat-og-oppgaver/Lover-og-regelverk-i-tilknytning-til-NorgesBanks-virksomhetsomrade/Utfyllende-etiske-regler/, archived at https://perma.cc/7J56-Y6RT. 

451 Bruk av bitcoins – skatte- og avgiftsmessige konsekvenser [Use of Bitcoins – Tax Effects], SKATTEETATEN (Nov. 

11, 2013), https://www.skatteetaten.no/rettskilder/type/uttalelser/prinsipputtalelser/bruk-av-bitcoins--skatte--ogavgiftsmessige-konsekvenser/, archived at https://perma.cc/5223-NKR4; see also Elin Hofverberg, Norway: 

Bitcoins Are Capital Property, Not Currency, Says Norwegian Tax Authority, GLOBAL LEGAL MONITOR (Dec. 11, 

2013), http://www.loc.gov/law/foreign-news/article/norway-bitcoins-are-capital-property-not-currency-saysnorwegian-tax-authority/, archived at https://perma.cc/QVF6-BBFQ.

452 §§ 5-1; 5-20; 6-1 LOV OM SKATT AV FORMUE OG INNTEKT (SKATTELOVEN) [ACT ON TAXATION OF INCOME (TAX 

ACT)] (LOV-1999-03-26-14), https://lovdata.no/dokument/NL/lov/1999-03-26-14, archived at

https://perma.cc/S8Y6-8RPR. 

453 SKATTEETATEN, supra note 451. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 75 

All Norwegian residents are required to report taxable income (including from capital gains such 

as those from cryptocurrencies) in accordance with the Norwegian Income Tax Act.454 Such 

income derived from cryptocurrencies should be filed as “other income.”455

Sales of cryptocurrencies are exempt from Norwegian value-added tax (VAT). In a 2013 statement 

the Norwegian Tax Authority determined that the sale of bitcoins by a commercial actor was 

subject to a 25% VAT as the trade in bitcoins on a web-based site is an electronic service subject 

to VAT and not a VAT-exempt financial service.456 However, in 2015 the Court of Justice of the 

European Union ruled that cryptocurrencies are exempt from VAT.457 This caused Norway to start 

a process whereby the Finance Department was to determine how bitcoins (and other 

cryptocurrencies) should be treated in relation to VAT.458 Final guidance was issued in 2017, 

establishing that the sale of cryptocurrencies is exempt from VAT.459 

Russia 

A draft law on digital financial assets was published by the Ministry of Finances on January 20, 

2018, and introduced in the State Duma on March 20, 2018. The bill defines “mining” as activities 

aimed at the creation of cryptocurrency with the purpose of receiving compensation in the form of 

cryptocurrency. Mining is treated as an entrepreneurial activity subject to taxation if the miner 

exceeds the energy consumption limits established by the government for three months in a row.460

As to initial coin offerings (ICO), only qualified investors are allowed to participate in them, except 

 

454 § 2-1 skatteloven. 

455 As per income tax guidelines at 3.1.12 Annen inntekt [Other Income], SKATTEETATEN, https://www.skatteetaten. 

no/person/skatt/skattemelding/finn-post/3/1/12/ (last visited Apr. 6, 2018), archived at https://perma.cc/96P3-

QXNK. 

456 SKATTEETATEN, supra note 451; see also Hofverberg, supra note 451. 

457 Case C‐264/14, Skatteverket v. David Hedqvist, 2015 CURIA EUROPA ECLI:EU:C:2015:718 (Oct. 22, 2015), 

http://curia.europa.eu/juris/document/document.jsf?docid=170305&doclang=EN, archived at

https://perma.cc/LU2G-U6VD. 

458 Skriftlig spørsmål fra Sveinung Rotevatn (V) til finansministeren [Written Question from Sveinung Rotevatn (V) 

to the Minister of Finance], Dokument nr. 15:1436 (2015-2016) (Aug. 10, 2016), https://www.stortinget.no/no/ 

Saker-og-publikasjoner/Sporsmal/Skriftlige-sporsmal-og-svar/Skriftlig-sporsmal/?qid=66127, archived at

https://perma.cc/SBC3-9M7Q. 

459 Letter from the Finance Department to the Norwegian Tax Authority, Merverdiavgift – unntaket for finansielle 

tjenester [VAT Fees – Exemption for Financial Services] (Feb. 6, 2017), https://www.regjeringen.no/no/ 

dokumenter/merverdiavgift---unntaket-for-finansielle-tjenester/id2538129/, archived at https://perma.cc/8GV3-

TU4Q. 

460 Bill No. 419059-7, Federal Law of the Russian Federation on Digital Financial Assets, http://asozd2c.duma. 

gov.ru/addwork/scans.nsf/ID/E426461949B66ACC4325825600217475/$FILE/419059-7_20032018_419059-

7.PDF?OpenElement (in Russian), archived at https://perma.cc/UM68-PKN8; see also The Ministry of Telecom and 

Mass Communications Has Proposed a Regulatory Moratorium for Industrial Miners, RBC (Mar. 22, 2018), 

https://www.rbc.ru/ins/economics/22/03/2018/5ab36c129a79477b7bc615b7 (in Russian), archived at

https://perma.cc/4DFX-M58U. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 76 

for cases to be defined by the Central Bank, according to news reports.461 Tokens and coins are 

classified in the bill as property and are not considered legal tender. The bill does not authorize the 

exchange of cryptocurrency for rubles or foreign currency. The exchange of tokens for rubles and 

foreign currency is allowed but only through licensed operators.462 The bill also provides a 

definition of a “smart contract.”463 

The Ministry of Telecom and Mass Communications has presented its own concept of the draft 

law on digital financial assets. It recommends introducing the term “industrial mining,” registering 

miners with the tax office, and setting forth requirements for energy consumption. It also 

recommends exempting miners from taxation for a period of two years to stimulate their activities. 

Earlier the Ministry had offered to create a special exchange platform for the miners to ensure the 

transparency of cryptocurrency exchange.464 

Separately, amendments were introduced to the Civil Code465 in order to protect the rights of the 

owners of cryptocurrency coins and tokens. The document defines “digital money” and “digital 

rights,” and provides for their judicial protection. The authors say that these regulations will allow 

coins and tokens to be included in a bankruptcy estate or a deceased person’s estate.466 

It is expected that the legislative framework for cryptocurrency regulation will be enacted by July 

1, 2018, after which the rules on the taxation of cryptocurrency operations will be introduced.467

 

 

461 Lyudmila Petukhova, Passion for Bitcoin: How Cryptocurrencies and ICO Will Be Regulated in Russia, RBC 

(Mar. 20, 2018), https://www.rbc.ru/finances/20/03/2018/5ab125e69a79474518a5c2a1 (in Russian), archived at

https://perma.cc/JZT9-5N48. 

462 Id. 

463 Id. 

464 The Ministry of Telecom and Mass Communications Has Proposed a Regulatory Moratorium for Industrial 

Miners, RBC, supra note 460. 

465 Bill No. 424632-7, Federal Law of the Russian Federation on Amending Parts One, Two and Four of the Civil 

Code of the Russian Federation, http://asozd2c.duma.gov.ru/addwork/scans.nsf/ID/B91DEDFBCF19B4 

E04325825C0032641E/$FILE/424632-7_26032018_424632-7.PDF?OpenElement (in Russian), archived at

https://perma.cc/HV5Z-DXRJ. 

466 Tatyana Zamakhina, Money in the Web, A Bill on Digital Economy Has Been Submitted to the State Duma, 

RG.RU (Mar. 26, 2018), https://rg.ru/2018/03/26/v-gosdumu-vnesen-zakonoproekt-o-cifrovom-prave.html?utm_ 

source=rg.ru&utm_medium=offline&utm_campaign=back_to_online (in Russian), archived at

https://perma.cc/9GH7-LDTR. 

467 Yevgueniy Gayva, Cryptocurrency Transactions Will Be Taxed, RG.RU (Jan. 25, 2018), https://rg.ru/2018/01/25/ 

operacii-s-kriptovaliutami-oblozhat-nalogami.html (in Russian), archived at https://perma.cc/53VR-YLTG. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 77 

Serbia 

The National Bank of Serbia made two announcements, one on October 2, 2014,468 and the other 

on May 4, 2016,469 to clarify that “anyone investing in bitcoins or engaging in any other activity 

involving virtual currencies shall do so at their own liability, bearing all financial risks and risks 

in terms of noncompliance with regulations governing foreign exchange operations, taxation, 

trade, etc.”470 The Bank explained that bitcoin is not legal tender in Serbia and cannot be subject 

to sale and purchase by banks or licensed exchange dealers. The Bank said that a particular issue 

is the use of virtual currency to acquire other goods and services, adding that the law requires 

prices to be expressed in Serbian dinars and that expressing the prices of goods or services in 

virtual currency would be against the provisions of the law.471 The Bank said it would consider, in 

cooperation with other state authorities, whether there is any need for designing a regulatory or 

other response in relation to cryptocurrencies.472 

Switzerland 

The Swiss Canton of Zug is trying to establish itself as a hub for cryptocurrencies and Fintech 

start-ups. On November 2, 2017, the Commercial Register Office in the Canton of Zug started 

accepting bitcoin and ether as payment for administrative costs.473 Furthermore, the Commercial 

Register accepts cryptocurrencies as a contribution in kind for purposes of forming a company.474

In the city of Zug, municipal services (resident registration) of up to CHF200 (about US$210) can 

be paid with bitcoin.475

 

468 Press Release, National Bank of Serbia (NBS), NBS Warns that Bitcoin Is Not Legal Tender in Serbia (Oct. 2, 

2014), http://www.nbs.rs/internet/english/scripts/showContent.html?id=7607&konverzija=no, archived at

https://perma.cc/DK4U-ZEUL. 

469 Press Release, NBS, Bitcoin Will Not Replace Euro or Any Other Currency (May 4, 2016), http://www.nbs.rs/ 

internet/latinica/scripts/showContent.html?id=9612&konverzija=yes, archived at https://perma.cc/VL7X-PF4E. 

470 Id.

471 Maja Zivanovic, Serbian Bank Advises Caution Over Bitcoin Fever, BALKANINSIGHT (Dec. 26, 2017), 

http://www.balkaninsight.com/en/article/serbian-national-bank-advise-caution-with-bitcoin-12-25-2017, archived at

https://perma.cc/5RM3-ZUWU. 

472 Press Release, NBS, Bitcoin Will Not Replace Euro or Any Other Currency, supra note 469. 

473 Press Release, Kanton Zug [Canton Zug], Handelsregisteramt Zug akzeptiert Kryptowährungen Bitcoin und 

Ether als Zahlungsmittel [Commercial Register Office Zug Accepts Cryptocurrencies Bitcoin and Ether as Means of 

Payment] (Nov. 2, 2017), https://www.zg.ch/behoerden/volkswirtschaftsdirektion/handelsregisteramt/ 

aktuell/handelsregisteramt-zug-akzeptiert-kryptowaehrungen-bitcoin-und-ether-als-zahlungsmittel, archived at

http://perma.cc/384H-BEUE. 

474 Press Release, Kanton Zug, HR Zug lässt Kryptowährungen als Sacheinlage zu [Commercial Register Office in 

Zug Accepts Crytocurrencies as a Contribution in Kind] (Sept. 4, 2017), https://www.zg.ch/behoerden/ 

volkswirtschaftsdirektion/handelsregisteramt/aktuell/bitcoin-als-sacheinlage? searchterm=bitcoin, archived at

http://perma.cc/H5A7-AUJH. 

475 Press Release, Stadt Zug [City of Zug], Von Bitcoin zu Blockchain-Anwendungen [From Bitcoin to Blockchain 

Applications] (Nov. 15, 2016), http://www.stadtzug.ch/de/ueberzug/ueberzugrubrik/aktuelles/aktuelles 

informationen/welcome.php?action=showinfo&info_id=351680&ls=0&sq=&kategorie_id=&date_from=&date_to=, 

archived at http://perma.cc/LZL9-CNHR. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 78 

On January 1, 2018, the municipality of Chiasso, in the Swiss Canton of Ticino, started accepting 

bitcoin as tax payments for amounts of up to CHF250 (around US$263).476 

 

On February 16, 2018, the Swiss Financial Market Supervisory Authority (Eidgenössische 

Finanzmarktaufsicht, FINMA) published guidelines on the regulatory treatment of ICOs,477 which 

complement its earlier FINMA Guidance from September 2017.478 Currently, there is no ICOspecific regulation, nor is there relevant case law or consistent legal doctrine.479 FINMA stated 

that due to the fact that each ICO is designed in a different way, it must be decided on a case-bycase basis whether and which financial regulations are applicable. 

In an ICO, investors receive blockchain-based coins or tokens in exchange for the funds they 

transfer. The tokens are created and stored either on a blockchain specifically created for the ICO 

or on a pre-existing blockchain.480 FINMA differentiates between payment tokens 

(cryptocurrencies), utility tokens, and asset tokens. Payment tokens (cryptocurrencies) are defined 

as tokens that are used as a means of payment or as a means of money or value transfer. Utility 

tokens are those that provide digital access to an application or service by means of a blockchainbased infrastructure. Asset tokes represent assets such as a debt or an equity claim against the 

issuer. According to FINMA, asset tokens are analogous to equities, bonds, and derivatives.481

Operators of financial market infrastructures are subject to authorization by FINMA.482 If the 

tokens received in an ICO qualify as securities, trading will require authorization. Securities are 

defined as “standardised certificated or uncertificated securities, derivatives and intermediated 

securities which are suitable for mass standardised trading,”483 meaning they are “publicly offered 

for sale in the same structure and denomination or are placed with more than 20 clients, insofar as 

 

476 Possibilità di pagamento imposte in Bitcoin [Possibility to Pay Taxes in Bitcoin], COMUNE DI CHIASSO 

[MUNICIPALITY OF CHIASSO] (Feb. 1, 2018), https://www.chiasso.ch/possibilita-pagamento-imposte-bitcoin/, 

archived at http://perma.cc/2VR9-STWR. 

477 FINMA, Guidelines for Enquiries Regarding the Regulatory Framework for Initial Coin Offerings (ICOs) 

(FINMA ICO Guidelines) (Feb. 16, 2018), https://www.finma.ch/en/~/media/finma/dokumente/dokumenten 

center/myfinma/1bewilligung/fintech/wegleitung-ico.pdf?la=en, archived at http://perma.cc/PV9L-5AEK. 

478 FINMA Guidance 04/2017. Regulatory Treatment of Initial Coin Offerings (FINMA Guidance) (Sept. 29, 2017), 

https://www.finma.ch/en/~/media/finma/dokumente/dokumentencenter/myfinma/4dokumentation/ finmaaufsichtsmitteilungen/20170929-finma-aufsichtsmitteilung-04-2017.pdf?la=en&hash=9DCC5C1FF8F61C9 

AA9412FAD2D7C70533F341EF2, archived at http://perma.cc/6YGB-LSCP. 

479 FINMA ICO Guidelines, supra note 477, at 2, no. 3. 

480 Id. at 1, no. 1. 

481 Id. at 3, no. 3.1. 

482 Finanzmarktinfrastrukturgesetz [FinfraG] [Financial Market Infrastructure Act] [FMIA], June 19, 2015, 

SYSTEMATISCHE RECHTSSAMMLUNG [SR] [SYSTEMATIC COLLECTION OF LAWS] 958.1, art. 4, https://www.admin.ch/ 

opc/de/classified-compilation/20141779/201708010000/958.1.pdf, archived at http://perma.cc/5F64-2WFF, 

unofficial English translation available at https://www.admin.ch/opc/en/classified-compilation/20141779/ 

201708010000/958.1.pdf, archived at http://perma.cc/WT73-EMWN. 

483 FMIA art. 2, let. b. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 79 

they have not been created especially for individual counterparties.”484 FINMA does not treat 

payment tokens or utility tokens whose sole purpose is to confer digital access rights as securities. 

However, utility tokens that have an additional investment purpose or a sole investment purpose 

at the time of issue, as well as asset tokens that are standardized and suitable for mass standardized 

trading, are classified as securities.485

Funds raised in an ICO generally do not qualify as deposits within the meaning of the Banking 

Act. However, if there are liabilities with debt capital character, for example a promise to return 

capital with a guaranteed return, then such an ICO would require the organizer to obtain a banking 

license.486 When assets collected as part of the ICO are managed externally by third parties, the 

provisions of the Collective Investment Schemes Act apply.487 Provisions on combating money 

laundering and terrorist financing, which give rise to a range of due diligence requirements, apply 

to the ICO of a payment token (cryptocurrency) as soon as the tokens can be technically transferred 

on a blockchain infrastructure.488 In addition, the exchange of a cryptocurrency for fiat money or 

a different cryptocurrency as well as the offering of services to transfer tokens if the service 

provider maintains the private key (custody wallet provider) equally trigger the due diligence 

requirements according to the Anti-Money Laundering Act.489

In September 2017, FINMA closed down the unauthorized providers of the fake cryptocurrency 

“E-Coin”, liquidated the companies, and issued a general warning about fake cryptocurrencies to 

investors.490 Furthermore, three other companies were put on FINMA’s warning list due to 

suspicious activity and eleven investigations were conducted into other presumably unauthorized 

business models relating to such coins.491

 

484 Finanzmarktinfrastrukturverordnung [FinfraV] [Financial Market Infrastructure Ordinance] [FMIO], Nov. 25, 

2015, SR 958.11, art. 2, para. 1, https://www.admin.ch/opc/de/classified-compilation/20152105/201708010000/ 

958.11.pdf, archived at http://perma.cc/NW3S-JAGZ, unofficial English translation available at https://www.admin. 

ch/opc/en/classified-compilation/20152105/201708010000/958.11.pdf, archived at http://perma.cc/2423-R4HG. 

485 FINMA ICO Guidelines, supra note 477, at 4, no. 3.2.1-3.2.3. 

486 Id. at 6, no. 3.4; Bankengesetz [BankG] [Banking Act], Nov. 8, 1934, SR 952.0, arts. 1, 3, https://www.admin.ch/ 

opc/de/classified-compilation/19340083/201601010000/952.0.pdf, archived at http://perma.cc/R5N5-E4KE. 

487 FINMA ICO Guidelines, supra note 477, at 6, no. 3.5; Kollektivanlagengesetz [KAG] [Collective Investment 

Schemes Act] [CISA], June 23, 2006, SR 951.31, https://www.admin.ch/opc/de/classified-compilation/ 

20052154/201607010000/951.31.pdf, archived at http://perma.cc/9HHP-QTY6, unofficial English translation 

available at https://www.admin.ch/opc/en/classified-compilation/20052154/201607010000/951.31.pdf, archived at 

http://perma.cc/8NAX-442E. 

488 FINMA ICO Guidelines, supra note 477, at 6, no. 3.6; Geldwäschereigesetz [GwG] [Anti-Money Laundering 

Act] [AMLA], Oct. 10, 1997, SR 955.0, https://www.admin.ch/opc/de/classified-compilation/19970427/20160 

1010000/955.0.pdf, archived at http://perma.cc/E9UX-3EBW, unofficial English translation available at 

https://www.admin.ch/opc/en/classified-compilation/19970427/201601010000/955.0.pdf, archived at

http://perma.cc/M4M6-UW5U. 

489 FINMA ICO Guidelines, supra note 477, at 7, no. 3.6. 

490 Press Release, FINMA, FINMA Closes Down Coin Providers and Issues Warning About Fake Cryptocurrencies 

(Sept. 19, 2017), https://www.finma.ch/en/news/2017/09/20170919-mm-coin-anbieter/, archived at 

http://perma.cc/VN3C-2ZUK. 

491 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 80 

In Switzerland, the individual cantons, the Swiss states, are obligated to levy income tax and wealth 

tax on the total property (assets and rights with a cash value) of taxpayers that are resident in their 

canton.492 Tax rates vary between the individual cantons. Cryptocurrencies are treated like foreign 

currencies for tax purposes and are subject to wealth tax.493 Holders of bitcoin or other 

cryptocurrencies are taxed at the rate determined by the tax authorities on December 31 of the 

fiscal year. As an example, the tax rate for bitcoin determined on December 31, 2017, by the Swiss 

Federal Tax Administration was CHF13,784.38 (about US$14,514).494 This rate is a 

recommendation for the cantonal tax authorities. 

In January 2018, the Swiss State Secretariat for International Finance (Staatssekretariat für 

internationale Finanzfragen, SIF) reported that it would set up a working group on blockchain and 

ICOs.495 The working group will work together with the Federal Ministry of Justice and FINMA 

and involve interested businesses. It will study the legal framework for financial sector-specific 

use of blockchain technology with a particular focus on ICOs and report back to the Federal 

Council, the Swiss government, by the end of 2018. 

Ukraine 

On November 30, 2017, the financial regulators of Ukraine issued a joint statement on the status 

of cryptocurrencies in the country. According to the statement, cryptocurrencies cannot be 

classified as money, foreign currency, a means of payment, electronic money, securities, or a 

money surrogate. The regulators also stated that they continue to work on defining the legal status 

of cryptocurrencies and the legislative regulation of transactions involving them. The regulators 

warned about the extremely high probability of losses in dealing with cryptocurrencies and said 

all investors in cryptocurrencies should realize that they are acting at their own peril and risk.496 

 

492 Bundesgesetz über die Harmonisierung der direkten Steuern der Kantone und Gemeinden [StHG] [Federal Act 

on the Harmonization of Direct Taxes Levied by Cantons and Municipalities], Dec. 14, 1990, SR 642.14, art. 2, 

para. 1, https://www.admin.ch/opc/de/classified-compilation/19900333/201801010000/642.14.pdf, archived at 

http://perma.cc/5QP8-2NXP. 

493 See as an example KANTON ZUG. FINANZDIREKTION. STEUERVERWALTUNG [CANTON ZUG. FINANCE 

DIRECTORATE. TAX ADMINISTRATION], KRYPTOWÄHRUNGEN (BITCOIN, ETHEREUM, TOKENS USW.): MERKBLATT 

STEUERN FÜR PRIVATPERSONEN [CRYPTOCURRENCIES (BITCOIN, ETHEREUM, TOKENS ETC.): EXPLANATORY LEAFLET 

FOR PRIVATE PERSONS] (Nov. 30, 2017), https://www.zg.ch/behoerden/finanzdirektion/steuerverwaltung/krypto 

waehrungen/download/Kryptowaehrungen%20-%20Merkblatt%20def.%20-%2030.11.2017.pdf/download, archived 

at http://perma.cc/VGX2-C5HS. 

494 Course Listing Federal Income Tax 2018, FEDERAL TAX ADMINISTRATION, https://www.ictax.admin.ch/extern/ 

en.html#/ratelist/2018 (last visited Apr. 5, 2018), archived at http://perma.cc/9JCD-MHSE. 

495 Press Release, Arbeitsgruppe Blockchain/ICO wird ins Leben gerufen [Working Group Blockchain/ICO Set Up], 

Eidgenössisches Finanzdepartement [EFD] [Swiss Federal Department of Finance], Jan. 18, 2018, 

https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen.msg-id-69539.html, archived at

http://perma.cc/2WJV-XXPD. 

496 Press Release, National Bank of Ukraine, Joint Statement of Financial Regulators on the Status of Cryptoassets in 

Ukraine (Nov. 30, 2017), https://bank.gov.ua/control/uk/publish/printable_article;jsessionid=175FC525F862C 

3D896D522CFC9CC47BB?art_id=59735329&showTitle=true (in Ukrainian), archived at https://perma.cc/K8WFKS5W; see also Cryptocurrency in the Ukraine – the Position of the Authorities, NEXUS FINANCIAL CONSULTING

(Dec. 1, 2017), https://www.nexus.ua/novosti-offshornogo-biznesa/ukraina/5218-kriptovalyuty-v-ukraine-pozitsiyavlastej (in Russian), archived at https://perma.cc/V3SC-3UFL. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 81 

On January 11, 2018, the cybersecurity unit of the National Security and Defense Council issued 

a statement saying that Ukraine can no longer allow the uncontrolled turnover of cryptocurrency 

on its territory and that the Council plans to create a working group to develop the regulatory 

framework, determine the regulatory body and the procedures for monitoring, identifying and 

taxing transactions with cryptocurrency.497 On January 30, 2018, the head of the cybercrime 

department of the Police stated that circulation of cryptocurrencies must be banned if its legal 

status is not regulated in the near future.498 In March of 2018 the government approved 

supplementing the classification of economic activities with a paragraph on 

cryptocurrency mining.499

In late 2017 Ukrainian MPs introduced two alternative draft bills that would regulate 

cryptocurrencies, one of which would define them as goods and the other as financial assets. 

However, both drafts were rejected by the country’s financial regulators.500 

 

 

497 Press Release, National Security and Defense Council of Ukraine, O. Turchinov: The Development of the Market 

of Cryptoassets Cannot Be Left Out of Government Attention (Jan. 11, 2018), http://www.rnbo.gov.ua/news/ 

2965.html (in Ukrainian), archived at https://perma.cc/9R89-4967; see also Turchinov Saw in Cryptocurrency a 

Threat to the Security of Ukraine, NEWSONE (Jan. 11, 2018), https://newsone.ua/news/politics/turchinov-uvidel-vkriptovalyute-ugrozu-dlya-bezopasnosti-ukrainy.html (in Russian), archived at https://perma.cc/Q5XE-BM7H. 

498 The Head of the Ukrainian Cyberpolice Called for Defining the Status of Cryptocurrency, GORDON (Jan. 30, 

2018), http://gordonua.com/news/money/glava-kiberpolicii-ukrainy-prizval-opredelit-status-kriptovalyuty229317.html (in Russian), archived at https://perma.cc/GH4Z-KSC5. 

499 Yana Largo, The Government of Ukraine Will Equate Mining to Economic Activity, CRYPTO.PRO (Mar. 15, 

2018), https://news.crypto.pro/pravitelstvo-ukrainy-priravnjaet-majning-k-jekonomicheskoj-dejatelnosti/ (in 

Russian), archived at https://perma.cc/6CYQ-87TS. 

500 Oleksiy Shevnin, Legalization of Cryptocurrencies, How the Government Will Lay Its Hands on Bitcoin, 

DEPO.UA (Jan. 25, 2018), https://www.depo.ua/rus/money/legalizaciya-kriptovalyut-yak-derzhava-naklade-lapu-nabitkoyn-20180124714146 (in Russian), archived at https://perma.cc/L88L-USG4. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 82 

Middle East and North Africa 

Algeria 

The 2018 Financial Law of Algeria has prohibited the use of any cryptocurrencies. It stipulates: 

The purchase, sale, use, and possession of so-called virtual currency are prohibited. A 

virtual currency is one used by Internet users over the Internet. It is characterized by the 

absence of physical support such as coins, paper money, or payments by check or 

credit card. 

Any violation of this provision is punishable in accordance with the laws and regulations 

in force.501

Bahrain 

The governor of the Central Bank of Bahrain, Rasheed Al Maraj, has issued a warning against 

cryptocurrencies, especially bitcoin. During a parliamentary session that took place in the Shura 

Council, Al Maraj declared that the bitcoin is not recognized by any financial institution. He also 

mentioned that using bitcoin in Bahrain is illegal; however, Bharani citizens have the right to invest 

in cryptocurrencies outside Bahrain.502 

Egypt 

The Central Bank of Egypt issued a warning in January 2018 against the trading of 

cryptocurrencies, such as bitcoin, due to the extremely high risk associated with such currencies. 

The Central Bank also asserted that commerce within the Arab Republic of Egypt is confined only 

to the official paper currencies approved by the Bank.503

Egypt’s Dar al-Ifta, the primary Islamic legislator in Egypt, has issued a religious decree 

classifying commercial transactions in bitcoin as haram (prohibited under Islamic law). Dar alIfta has stated that cryptocurrencies could damage national security and central financial systems, 

and could also be used to fund terrorism and terrorists activities.504

 

 

501 Law No. 17-11 of 1917 (Dec. 27, 2017) art. 117, Official Gazette No. 76 of 2017 (Dec. 28, 2017), 

https://www.joradp.dz/FTP/JO-ARABE/2017/A2017076.pdf (in Arabic), archived at https://perma.cc/JE65-VFFF

(translation by author). French translation of the Law available at https://www.mfdgi.gov.dz/images/pdf/ 

lois_de_finances/LF2018F.pdf, archived at https://perma.cc/XP6A-8Q4A. 

502 Al Maraj: We Do Not Recognize Bitcoin and It is Dangerous to Deal With It, AL-WATAN (Jan. 7, 2018), 

http://alwatannews.net/article/752396/Bahrain/خطر-بھا-بالبيتكوينوالتعامل-نعترف-ال-المعراج) in Arabic), archived at 

https://perma.cc/WDT3-7R9F. 

503 Press Release, Central Bank of Egypt, A Warning Statement (Jan. 10, 2018), http://www.cbe.org.eg/en/ 

Pages/HighlightsPages/Bitcoin%20Press%20Release.aspx, archived at https://perma.cc/3X6D-WFEG. 

504 Religious Decree No. 4205, The Status of Transactions in Bitcoins and other Cryptocurrencies under Islamic 

Law, EGYPT’S DAR AL-IFTA (Dec. 28, 2017), http://www.dar-alifta.org/ar/ViewFatwa.aspx?sec=fatwa&ID=14139

(in Arabic), archived at https://perma.cc/432D-NHE5. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 83 

Iran 

The Central Bank of Iran (CBI) officially announced on April 22, 2018, that it has prohibited the 

handling of cryptocurrencies by all Iranian financial institutions, including banks and credit 

institutions. The decision also bans currency exchanges from buying and selling virtual currencies 

or adopting measures to facilitate or promote them.505

The CBI’s action was in line with Iran’s recent efforts to address deficiencies in its policies on 

anti-money laundering and combating the financing of terrorism, with the aim of complying with 

the action plan of the Financial Action Task Force on Money-Laundering (FATF). The FATF, an 

intergovernmental organization established to combat international money-laundering and terrorist 

financing, will determine at its plenary meeting in June 2018 whether to remove Iran from the 

FATF list of Non-Cooperative Countries or Territories.506 Previously, the CBI had only sought to 

warn people of the potential risks inherent in cybercurrencies,507 although a directive passed by 

the Money and Credit Council, the most important policy decision-making organ of the CBI, 

“[had] deemed non-physical and virtual transactions against the law, meaning that Iranian 

[currency exchanges could] not deal in cryptocurrencies.”508

The Bank’s decision to ban the use of cryptocurrencies by financial institutions is a blow for those 

in Iran who viewed virtual currencies as a means of overcoming problems related to the banking 

industry and international sanctions, and who see them as “currently shaping the future of banking” 

and, when precisely and transparently regulated, of preventing people in the country from buying 

and selling them secretly and using them fraudulently.509 Before the ban was announced, the CBI’s 

Information Technology Chief had reported that, along with the adoption of a framework that 

 

505 Iranian Financial Institutions Barred from Using Crypto-Currencies, FINANCIAL TRIBUNE (Apr. 22, 2018), 

https://financialtribune.com/articles/business-and-markets/85114/iranian-financial-institutions-barred-from-usingcrypto (available by subscription). 

506 Id.; Barry Lerner, Iran: IMF Evaluates Iran’s Legislative and Institutional Efforts to Combat Money Laundering 

and Terrorism Financing, GLOBAL LEGAL MONITOR (Apr. 13, 2018), http://www.loc.gov/law/foreignnews/article/iran-imf-evaluates-irans-legislative-and-institutional-efforts-to-combat-money-laundering-andterrorism-financing, archived at https://perma.cc/J5NX-YLWK. 

507 No Bitcoin Trade for Moneychangers, FINANCIAL TRIBUNE (Dec. 23, 2017), https://financialtribune.com/articles/ 

economy-business-and-markets/78454/no-bitcoin-trade-for-moneychangers, archived at https://perma.cc/8EM7-

XESG. The CBI is responsible for, inter alia, “formulating the monetary and credit system of the country, 

formulating the regulations pertaining to outflow as well as repatriation of Iranian and foreign currency, [and] 

foreign exchange transactions.” Laws & Regulations, CENTRAL BANK OF THE ISLAMIC REPUBLIC OF IRAN, 

https://www.cbi.ir/section/1454.aspx (last visited Mar. 19, 2018), archived at https://perma.cc/38FZ-SXVC. 

508 No Bitcoin Trade for Moneychangers, supra note 507; CENTRAL BANK OF THE ISLAMIC REPUBLIC OF IRAN,

CENTRAL BANKING IN IRAN, at 12–13, https://www.cbi.ir/page/4252.aspx (last visited Mar. 19, 2018), archived at

https://perma.cc/92DQ-CM3B. 

509 Iran’s Banks Banned from Dealing in Crypto-currencies, BBC NEWS (Apr. 23, 2018), http://www.bbc.com/ 

news/ technology-43865105, archived at https://perma.cc/TQD5-889D; Iranian Banker Calls for Cryptocurrency 

Recognition, FINANCIAL TRIBUNE (Jan. 7, 2018), https://financial tribune.com/articles/economy-business-andmarkets/79459/iranian-banker-calls-for-cryptocurrency-recognition, archived at https://perma.cc/H9HS-AGWK; 

Iranian Banker Calls for Cryptocurrency Recognition, FINANCIAL TRIBUNE (Jan. 7, 2018), https://financial 

tribune.com/articles/economy-business-and-markets/79459/iranian-banker-calls-for-cryptocurrency-recognition,

archived at https://perma.cc/H9HS-AGWK; No Bitcoin Trade for Moneychangers, supra note 507. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 84 

should be adhered to for using cryptocurrencies, the Central Bank was considering the adoption of 

a national virtual currency, either to be generated by the Central Bank or another entity.510 One of 

the motivations for developing such a currency was that it could potentially be used to replace the 

US dollar, an attractive prospect for Iran because US sanctions over Iran’s nuclear program bar 

Iran from using the US financial system.511

Iraq 

The Iraqi Central Bank has issued a statement prohibiting the use of cryptocurrencies. It stated that 

currency traders who carry out transactions in cryptocurrencies will be punished by penalties cited 

in the country’s anti-money laundering law.512

Israel 

Israel’s Supervision on Financial Services (Regulated Financial Services) Law 5776-2016 requires 

persons engaging in providing services involving “financial assets” to obtain a license from the 

Supervisor of Financial Services.513 The definition of “financial assets” includes “virtual 

currency.”514 A license will generally be issued to an Israeli citizen or a resident who has reached 

the age of majority, is legally competent, and has not been declared bankrupt or, in the case of a 

corporation, is not required to dissolve. Additional licensing requirements include that the licensee 

has a minimum specified amount of equity and, if an individual, has not been convicted of an 

offense that due to its nature makes the licensee unfit to handle financial transactions.515

A statement issued by Bank of Israel and several regulatory agencies on February 19, 2014, warned 

the public against dealing in virtual currencies. The warning laid out the dangers associated with 

trading in virtual currencies, including fraud, money laundering, and financing of terrorism, among 

others.516 In addition, the Bank of Israel said in a January 2018 statement that “it would not 

recognize virtual currencies such as bitcoin as actual currency and . . . it was difficult to devise 

 

510 Iran’s CB Issues Warning over Bitcoin and Other Cryptocurrencies, FINANCIAL TRIBUNE (Nov. 14, 2017), 

https://financialtribune.com/articles/economy-business-and-markets/76148/irans-cb-issues-warning-over-bitcoinand-other, archived at https://perma.cc/U8W7-VH3. 

511 CBI Governor Urges Caution on Bitcoin Trade, FINANCIAL TRIBUNE (Dec. 31, 2017), https://financialtribune. 

com/articles/economy-business-and-markets/78986/cbi-governor-urges-caution-on-bitcoin-trade, archived at 

https://perma.cc/7HZM-DFMF. 

512 Statement, Central Bank of Iraq, Bitcoin (Dec. 3, 2017), https://cbi.iq/news/view/512 (in Arabic), archived at

https://perma.cc/JG54-PDHV. 

513 Supervision on Financial Services (Regulated Financial Services) Law 5776-2016, §§ 2 &12, SEFER HAHUKIM 

[BOOK OF LAWS, official gazette] 5776 No. 2570 p. 1098, as amended (in Hebrew). 

514 Id. § 11A, subsection (7) of the definition of “financial asset.” 

515 Id. § 15. 

516 Id. ¶ 4, Bank of Israel Capital Market, Insurance and Saving Branch, Tax Authority, Securities Authority and the 

Prevention of Money Laundry and Financing of Terrorism Authority, Public Announcement Regarding Possible 

Risks Contained in Virtual Coins Such as Bitcoin (Feb. 19, 2014), https://taxes.gov.il/About/PublicAnnouncements/ 

PublishingImages/190214/odaa190214.pdf (in Hebrew), archived at https://perma.cc/VQ7Z-GDRQ. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 85 

regulations to monitor the risks of such activity to the country’s banks and their clients,” according 

to Reuters.517 

Although virtual currencies are not recognized as actual currency by the Bank of Israel, the Israel 

Tax Authority has proposed that the use of virtual currencies should be considered as a “means of 

virtual payment” and subject to taxation.518 Specifically, for the purpose of income tax and value 

added tax requirements, virtual currency is viewed as “an asset” and is taxed in accordance with 

relevant transaction classifications under the Income Tax Ordinance (New Version), 1961, and the 

Value Added Tax Law, 5736-1975.519 Accordingly, 

[u]nlike a regular currency, the Israel Tax Authority will regard an increase in the value of 

a cryptocurrency as a capital gain rather than an exchange fluctuation, making it subject to 

capital gains tax. Individual investors will not be liable for value-added tax, but anyone 

engaging in cryptocurrency mining will be classified as a “dealer” and subject to VAT, 

according to the circular. Anyone trading as a business will be classified as a “financial 

institution” for tax purposes, meaning that they will be unable to reclaim VAT on expenses 

but will be subject to an extra 17 percent “profit tax” applied to financial institutions.520

The Israel Tax Authority requires documentation of trade transactions involving virtual currency 

to enable verification of their existence and scope.521

Jordan 

In 2014, the Central Bank of Jordan (CBJ) warned the public against the use of bitcoin and sent 

out a press release to the media that stated: 

Recently, a global phenomenon of trading a virtual currency called bitcoin became active 

around the world. CBJ seeks to protect citizens and the investors, by warning them that 

virtual currencies are not legal tender and there is no obligation on any central bank in the 

world or any government to exchange its value for real money issued by them nor backed 

by underlying international commodities or gold.522 

 

 

517 Steven Scheer, Bitcoin Is an Asset, Not a Currency - Israel’s Central Bank, REUTERS (Jan. 8, 2018), 

https://www.reuters.com/article/uk-bitcoin-israel/bitcoin-is-an-asset-not-a-currency-israels-central-bankidUSKBN1EX18E, archived at https://perma.cc/3458-ZY58. 

518 Israel Tax Authority, Taxation of Activity by Means of Virtual Payment (Known as ‘Virtual Currencies’), Israel 

Tax Authority Circular No. 05/2018 (Jan. 17, 2018), https://taxes.gov.il/incometax/documents/hozrim/hor_ 

acc%2015.2.18.pdf (in Hebrew), archived at https://perma.cc/SJ48-L77X. 

519 Id. §§ 3.1–3.2; Income Tax Ordinance (New Version), 1961, 1 LAWS OF THE STATE OF ISRAEL (LSI) (New 

Version) 1967 and the Value Added Tax Law, 5736-1975, 30 LSI 46 (1975/76), both as amended. 

520 Matthew Kalman, Israel Taxman’s Guidelines Killing Cryptocurrency Boom?, BNA (Feb. 21, 2018), 

https://www.bna.com/israel-taxmans-guidelines-n57982089034/, archived at https://perma.cc/J8DE-6AJQ. 

521 Israel Tax Authority Circular No. 05/2018, supra note 518, § 3.3. 

522 Omar Obeidat, Central Bank Warns Against Using Bitcoin, JORDAN TIMES (Feb. 22, 2014), http://www.jordan 

times.com/news/local/central-bank-warns-against-using-bitcoin, archived at https://perma.cc/LJ9J-7FS7. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 86 

Kuwait 

Kuwait’s Ministry of Finance does not recognize cryptocurrencies for purposes of official 

commercial transactions. Similarly, the Central Bank of Kuwait (CBK) prohibits the banking 

sector and companies under its control from trading in cryptocurrencies. The prohibition includes 

acceptance of cryptocurrency usage in e-payment transactions, and mediation between the parties 

to cryptocurrency transactions.523 The CBK has asked the Ministry of Commerce and Industry to 

warn consumers about the risks of cryptocurrencies such as bitcoin.524

In January 2018, the CBK confirmed news that it was creating an infrastructure for the financial 

and banking sector in the country including the issuance of an e-currency, which it distinguished 

from virtual currencies. The establishment of a local digital currency will fall under the umbrella 

of e-payments, the statement said. The Central Bank highlighted that the local digital currency 

will have the same characteristics as paper money, such as an issuance number. It will also be 

monitored by the Kuwaiti government. Furthermore, it could be exchanged with other currencies 

as well as used to pay for goods and services.525

Lebanon 

On December 19, 2013, the Banque du Liban (BDL), the Lebanese Central Bank, issued a notice 

to the country’s banks and financial institutions warning them of the dangers of using 

cybercurrencies, especially bitcoin. Among other concerns, the notice stated that “the platforms 

and networks used for the issuance and trading in such currencies are not subject to any laws 

or regulations.”526 

Riad Salameh, Governor of the BDL announced in October 2017 that the institution intended to 

launch its own cybercurrency. He is quoted as saying: 

We understand that electronic currency will play a prominent role in the future. But BDL 

must first make the necessary arrangement before taking this step and develop [a] 

protection system from cybercrime. Both the Special Investigation Commission and 

Banking Control Commission are cooperating to prevent such electronic crimes.527 

 

523 Ministry of Finance Says Does Not Recognize Virtual Currency Bitcoin, ARAB TIMES (Dec. 18, 2017), 

https://www.arabtimesonline.com/news/ministry-finance-says-not-recognise-virtual-currency-bitcoin/, archived at 

https://perma.cc/DBZ9-E66N. 

524 Darius McQuaid, Kuwait Refuses to Trade Cryptocurrency Amid Price Surge, EXPRESS (Dec. 20, 2017), 

https://www.express.co.uk/finance/city/894639/bitcoin-banned-Kuwait-KPMG, archived at https://perma.cc/KX9AVM73. 

525 Press Release, Central Bank of Kuwait (Jan. 18, 2018), http://www.cbk.gov.kw/ar/cbk-news/announcements-andpress-releases/press-releases.jsp?kcp=o8QTtSFuP5Ix5WoYWwA74iHHhdsnIQ (in Arabic), archived at

https://perma.cc/RXB3-F447. 

526 Notice No. 900, 19 Dec. 2013, Banque du Liban, http://www.bdl.gov.lb/news/more/5/111/65 (in Arabic), 

archived at https://perma.cc/XAW8-FT7N. 

527 Brooke Anderson, Salameh: Central Bank to Launch Digital Currency, THE DAILY STAR (Oct. 27, 2017), 

http://www.dailystar.com.lb/Business/Local/2017/Oct-27/424064-salameh-central-bank-to-launch-digitalcurrency.ashx, archived at https://perma.cc/57JH-T5R8. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 87 

Salameh explained that the new currency will be monitored by the BDL and be subject to Lebanese 

law, but did not state how this will be done or provide a time frame.528 

Salameh also again expressed his opposition to the use of bitcoin, explaining that its use, which is 

not regulated, constitutes a threat to consumers and to the payment system in Lebanon.529 

Morocco 

In a press release posted on its official website, the Moroccan Exchange Office informed the public 

that the transactions effectuated through virtual currencies constitute a violation of the exchange 

regulations and are subject to penalties and fines provided by the texts in force.530 

The Office called on the persons concerned to abide by the exchange regulations, which provide 

that financial transactions with foreign entities must be effectuated through approved 

intermediaries and with foreign currencies listed by the Bank Al-Maghrib. 

The release also warns of the risks associated with the use of a virtual system of payment that is 

not backed by a financial institution. 

The release finally states that the Exchange Office, in collaboration with the Bank of Al-Maghrib 

and the Professional Grouping of the Banks of Morocco, are following with interest the evolution 

of virtual currencies in Morocco. 

The release does not bear a date but media reports indicate that it was issued in November 2017.531 

Oman 

The Central Bank of Oman’s board issued a press release in December 2017 declaring that there 

are no policies or guidelines to regulate “digital currencies” or “cryptocurrencies.” It also urged 

Omani citizens to be cautious when dealing with cryptocurrencies, asserting that the Central Bank 

is not responsible for any financial consequences stemming from dealings in cryptocurrencies.532 

 

 

528 Id.

529 Id.

530 Press Release, Office des Changes, Mise au point au sujet del’utilisation des monnai es virtuelle [Focusing on the 

use of virtual currency] (undated) http://www.oc.gov.ma/portal/sites/default/files/actualites/communiqu%C3%A 

9%20monnaies%20virtuelles.pdf (in French) (last visited Mar. 21, 2018), archived at https://perma.cc/B3K7-T6Z6. 

531 Sana Elouazi, Bye-Bye Bitcoin: Morocco Bans Cryptocurrencies, MOROCCO WORLD NEWS (Nov. 21, 2017), 

https://www.moroccoworldnews.com/2017/11/234382/bitcoin-morocco-cryptocurrencies-economy/, archived at

https://perma.cc/2SEL-XLAU. 

532 Press Release, Central Bank of Oman (Dec. 12, 2017), http://www.cbo-oman.org/news/PressRelease18Dec17.pdf 

(in Arabic), archived at https://perma.cc/CL9W-F7VC.
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 88 

Qatar 

In February 2018 the Supervision and Control of Financial Institution Division at Qatar’s Central 

Bank issued a circular to all banks operating in Qatar warning against trading in bitcoin. The 

circular described bitcoin as illegal and unsupported by any central bank or government. It also 

stated that trade in cryptocurrencies involves high risks of price volatility and the risk of being 

used in financial crimes. Finally, the circular prohibited all banks operating in Qatar from dealing 

with cryptocurrencies, subject to penalties for violators.533

Saudi Arabia 

The Saudi Arabian Monetary Agency (SAMA) has issued a warning against bitcoin because it is 

not being monitored or supported by any legitimate financial authority.534

In October 2017, SAMA announced that it will implement a pilot project to issue a local digital 

currency (Riyal) that will only be used in transactions among banks.535

United Arab Emirates 

Under article D.7.3 of the Regulatory Framework for Stored Values and an Electronic Payment 

System, issued by the Central Bank of the United Arab Emirates in January 2017, all transactions 

in “virtual currencies” (encompassing cryptocurrencies in Arabic) are prohibited.536

In January 2018, the governor of the UAE Central Bank, Mubarak Rashid Al-Mansouri, reiterated 

a warning against trading in cryptocurrencies. According to news reports, when Al-Mansouri was 

asked about his views concerning cryptocurrencies, he said that citizens should avoid these types 

of currencies because they are not approved by the Central Bank. Previously, in October 2017, AlMansouri issued a warning pertaining to cryptocurrencies, which said that such currencies were 

susceptible to use in money laundering or terrorism funding. He also added that cryptocurrencies 

such as bitcoin cannot be monitored by any legitimate financial authority.537

 

 

533 Circular No. 6/2018, Central Bank of Qatar (Feb. 2, 2018), http://www.qcb.gov.qa/sitelists/CircularsTo 

Banks/Lists/Circulars/Attachments/173/Circular%20no.%206-2018.pdf,archived at https://perma.cc/AKG5-TJLF. 

534 Statement, Saudi Arabian Monetary Agency (July 4, 2017), https://twitter.com/SAMA_GOV/status/882190896 

967692288 (in Arabic), archived at https://perma.cc/V552-BSBU. 

535 SAMA to Launch Digital Riyals for Banks, ARAB NEWS (Oct. 5, 2017), http://www.arabnews.com/node/1172906/ 

business-economy, archived at https://perma.cc/XC72-Y8U5. 

536 Central Bank of the United Arab Emirates, Regulatory Framework for Stored Values and an Electronic Payment 

System art. D.7.3 (Jan. 1, 2017), https://www.centralbank.ae/en/pdf/notices/Regulatory-Framework-For-StoredValues-And-Electronic-Payment-Systems-En.pdf, archived at https://perma.cc/R2GF-UF4W. 

537 Sarah Diaa, UAE Central Bank Warns against Cryptocurrencies Again, GULF NEWS (Feb. 10, 2018), 

http://gulfnews.com/business/sectors/markets/uae-central-bank-warns-against-cryptocurrencies-again-1.2171259, 

archived at https://perma.cc/7M44-9YXX. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 89 

Sub-Saharan Africa 

Ghana 

In January 2018, the Bank of Ghana issued a brief notice to banks and the general public advising 

against the use of “virtual or digital currencies, also known as cryptocurrencies,” mainly because 

such currencies and the entities that facilitate their transactions are not sanctioned by the 

government.538 The notice stated that 

[t]he Bank of Ghana wishes to notify the general public that these activities in digital 

currency are currently not licensed under the Payments System Act 2003 (Act 662). 

. . . 

The public is therefore strongly encouraged to do business with only institutions licensed 

by the Bank of Ghana to ensure that such transactions fall under our regulatory purview.539

Kenya 

In December 2015, the Central Bank of Kenya issued a public notice titled “Caution to the Public 

on Virtual Currencies such as bitcoin.”540 The notice stated that virtual currencies are not legal 

tender and remain unregulated in Kenya, which means that “no protection exists in the event that 

the platform that exchanges or holds the virtual currency fails or goes out of business.”541 It 

outlined the risks associated with the use, holding of, and/or trading of virtual currencies 

as follows: 

 Transactions in virtual currencies such as bitcoin are largely untraceable and 

anonymous making them susceptible to abuse by criminals in money laundering and 

financing of terrorism. 

 Virtual currencies are traded in exchange platforms that tend to be unregulated all over 

the world. Consumers may therefore lose their money without having any legal redress 

in the event these exchanges collapse or close business. 

 There is no underlying or backing of assets and the value of virtual currencies is 

speculative in nature. This may result in high volatility in value of virtual currencies 

thus exposing users to potential losses.542

 

538 Bank of Ghana, Digital and Virtual Currencies Operations in Ghana, Notice No. BG/GOV/SEC/2018/02 (Jan. 22, 

2018), https://www.bog.gov.gh/privatecontent/Public_Notices/Digital and Virtual Currencies Operations in 

Ghana.pdf, archived at https://perma.cc/4XYQ-KP7G. 

539 Id. 

540 Caution to the Public on Virtual Currencies such as Bitcoin, CENTRAL BANK OF KENYA (Dec. 2015), 

https://www.centralbank.go.ke/images/docs/media/Public_Notice_on_virtual_currencies_such_as_Bitcoin.pdf, 

archived at https://perma.cc/EE4P-UZ57. 

541 Id. 

542 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 90 

The notice concluded with a warning to the public to “desist from transacting in Bitcoin and 

similar products.”543

Lesotho 

In November 2017, the Central Bank of Lesotho issued a press statement regarding the growing 

popularity of cryptocurrencies.544 In it the Bank warned the public of the risks associated with the 

use of cryptocurrencies, given the fact that the Bank “does not oversee, supervise or regulate the 

cryptocurrencies, their systems, promoters or intermediaries,” and stated that 

[a]ny activities related to the acquisition, trading or use of cryptocurrencies is at the user’s 

sole and independent risk. Members of the public are therefore notified that in the event of 

losses or similar eventualities, there shall not be recourse to the Central Bank of Lesotho.545 

The Bank also warned the public of the risk of exposure to criminal charges that may result from 

the use of cryptocurrencies, stating 

it is important to highlight that cryptocurrencies expose participants to violation of: 

 Anti-money laundering and combating of terrorist financing laws; 

 Tax laws; and 

 Exchange control laws 

Which are prosecutable transgressions.546

The Bank issued a follow-up statement in February 2018, where in addition to providing 

information that reinforced the contents of the previous statement, it noted that cryptocurrencies 

are neither legal tender in Lesotho nor considered foreign currency.547 It also barred the operation 

of individuals and entities that promote investment in cryptocurrency because any and all 

investment advisors must be licensed.548

 

 

543 Id. 

544 Press Statement, Central Bank of Lesotho, The Emerging and Growing Promotion of Cryptocurrencies (Nov. 9, 

2017), https://www.centralbank.org.ls/images/Public_Awareness/Press_Release/Press_Release_-Bitcoin.pdf, 

https://perma.cc/ZK6H-JZQ3. 

545 Id. 

546 Id. 

547 Press Statement, Central Bank of Lesotho, The Emerging and Growing Promotion of Cryptocurrencies (Feb. 7, 

2018), https://www.centralbank.org.ls/images/Public_Awareness/Article/CRYPTOCURRENCY_1st__2018_ 

PRESS_RELEASE_HALF_PG.pdf, archived at https://perma.cc/9F7Y-7NYA. 

548 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 91 

Mozambique 

On January 8, 2018, the Mozambican Federal Reserve Bank (Banco de Moçambique), issued a 

notice (Comunicado) in its role as supervisor of the financial system in the country informing 

citizens that a decentralized and convertible virtual currency called bitcoin is circulating in the 

national territory.549 

The Bank clarified that it does not regulate or supervise any activity or transaction carried out 

through bitcoins and is not responsible for any impacts of transactions related to bitcoin, because 

this currency does not have legal support and is not issued by the national monetary authority, 

the Bank. 

The notice further stated that companies that negotiate bitcoins are not regulated, authorized, or 

supervised by the Bank; that such virtual currency offers no security, being vulnerable to fraud 

and other crimes perpetrated using computer means; that its price is highly volatile; and that it 

allows for the execution of anonymous transactions, favoring criminal activities.550

Namibia 

In September 2017, the Bank of Namibia issued a position paper titled “Position on Distributed 

Ledger Technologies and Virtual Currencies in Namibia”551 in which it noted that virtual 

currencies are not considered legal tender and are currently unregulated in the country.552 The 

Bank outlined the risks associated with the use of virtual currencies, including credit risks, liquidity 

risks, operational risks, and legal risks.553 It warned that individuals who hold or trade in virtual 

currencies do so “at their own risk and should exercise caution.”554 The Bank further stated that 

because the country’s relevant laws do not envisage their existence, virtual currency exchanges 

cannot be established or operate in Namibia.555 

 

549 Alerta Sobre os Riscos Decorrentes de Transações Relacionadas com Bitcoins, Banco de Moçambique (Jan. 9, 

2018), http://www.bancomoc.mz/Noticias.aspx?search=822 (click on the Word Document icon), archived at

https://perma.cc/3AAZ-A73V. 

550 Id. 

551 Bank of Namibia, Position on Distributed Ledger Technologies and Virtual Currencies in Namibia (Position 

Paper, Sept. 2017), https://www.bon.com.na/CMSTemplates/Bon/Files/bon.com.na/cd/cd7ea698-3e85-4b79-b111-

c97c7fae20fc.pdf, archived at https://perma.cc/ZUB4-XTGN. 

552 Id. § 3.10. 

553 Id. § 3.9. 

554 Id. § 3.10. 

555 Id. §§ 3.8 & 3.10. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 92 

South Africa 

At present, there are no specific laws or regulations governing the use or trading of virtual 

currencies (VCs) in South Africa.556 However, in December 2014 the South African Reserve Bank 

(SARB), the central banking institution whose responsibilities include formulating and 

implementing monetary policy and issuing banknotes and coins in the country, issued a position 

paper on virtual currencies.557 

The position paper expressly stated that only the SARB may issue legal tender and that 

decentralized convertible virtual currencies (DCVCs), including bitcoin and litecoin, are not legal 

tender in South Africa.558 This means that “any merchant or beneficiary may refuse VCs as a 

means of payment.”559

The SARB warned of various risks associated with the use of VCs, including issues relating to 

payment systems and payment service providers, price stability, money-laundering and terrorism 

financing, consumer risk, circumvention of exchange control regulations, and financial stability.560 

For instance, the position paper warns about risks that consumers are exposed to mainly due to the 

unregulated nature of VCs and the wild fluctuations in prices, which could result in heavy financial 

losses.561 This does not account for other risks such as losses incurred as the result of a security 

breach, fraud, and the absence of insurance mechanisms to cover losses, the SARB noted.562 

Regarding the abovementioned risks, the SARB stated that “no legal protection or recourse is 

afforded to users, traders or intermediaries of VCs and such activities are performed at the endusers sole and independent risk.”563 

 

 

556 Virtual Currencies / Crypto-currencies, SOUTH AFRICAN RESERVE BANK, https://www.resbank.co.za/ 

RegulationAndSupervision/FinancialSurveillanceAndExchangeControl/FAQs/Pages/VirtualCurrenciesCryptocurren

cies.aspx (last visited Mar. 20, 2018), archived at https://perma.cc/HH8P-H4BJ. 

557 SARB, Position Paper on Virtual Currencies (Dec. 3, 2014), https://www.golegal.co.za/wp-content/uploads/ 

2018/01/Virtual-Currencies-Position-Paper-Final_02of2014.pdf, archived at https://perma.cc/A8L2-4MK6; About 

Us, SARB, https://www.resbank.co.za/AboutUs/Pages/About%20Us-Home.aspx (last visited Mar. 20, 2018), 

archived at https://perma.cc/TS79-2VFE. 

558 SARB, Position Paper on Virtual Currencies, supra note 557, §§ 2.1 & 3.2. 

559 Virtual Currencies / Crypto-currencies, SARB, supra note 556.

560 SARB, Position Paper on Virtual Currencies, supra note 557, § 4.3. 

561 Id. 

562 Id.

563 Virtual Currencies / Crypto-currencies, SARB, supra note 556. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 93 

While the SARB’s position paper warned individuals against involvement in trading or holding 

VCs, it also noted that it does not see VCs as posing any systemic threat at this time: 

Values ($6,25 billion) and volumes (60 000 daily average) currently traded in Bitcoin (the 

leading DCVC) remain insignificant when compared to the formal payment system and the 

larger economy. VCs are not considered legal tender in most jurisdictions. A multitude of 

independent variants of VCs exist and are being developed, all aimed at the same niche 

market. Based on the aforementioned, VCs (particularly DCs), at this stage of their 

development, are neither broad nor evasive enough to be classified as systemic.564

However, it emphasized the need for constant monitoring of DCVCs and said it “reserves the right 

to change its position should the landscape warrant regulatory intervention.”565

On April 6, 2018, the South African Revenue Services (SARS) issued a clarification on the tax 

status of VCs. SARS noted that it “will continue to apply normal income tax rules to 

cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains as part of their 

taxable income.”566 Taxpayers must therefore declare all their cryptocurrency income and failure 

to do so could result in imposition of interest and penalties.567 SARS appears to have not made a 

determination whether gains made from trading cryptocurrency are subject to income tax or capital 

gains tax.568 It states that: 

Whilst not constituting cash, cryptocurrencies can be valued to ascertain an amount 

received or accrued as envisaged in the definition of “gross income” in the Act. Following 

normal income tax rules, income received or accrued from cryptocurrency transactions can 

be taxed on revenue account under “gross income”. 

 

Alternatively such gains may be regarded as capital in nature, as spelt out in the Eighth 

Schedule to the Act for taxation under the CGT paradigm. 

 

Determination of whether an accrual or receipt is revenue or capital in nature is tested under 

existing jurisprudence (of which there is no shortage).569

The amount of tax accrued to a person could differ a great deal depending on whether gains in 

VCs are taxed as income or capital gains.570 

 

564 SARB, Position Paper on Virtual Currencies, supra note 557, § 4.3. 

565 Id. §§ 4.3 & 5.3. 

566 Press Release, South Africa Revenue Services, SARS’S Stance on the Tax Treatment of Cryptocurrencies (Apr. 

6, 2018), http://www.sars.gov.za/Media/MediaReleases/Pages/6-April-2018---SARS-stance-on-the-tax-treatment-ofcryptocurrencies-.aspx, archived at https://perma.cc/2ET9-V3KX. 

567 Id. 

568 Id. 

569 Id. 

570 Capital Gains Tax (CGT), SOUTH AFRICAN REVENUE SERVICES, http://www.sars.gov.za/Tax-Rates/IncomeTax/Pages/Capital-Gains-Tax-(CGT).aspx, archived at https://perma.cc/7KRC-AKVT; Rates of Tax for Individuals, 

SOUTH AFRICAN REVENUE SERVICES, http://www.sars.gov.za/Tax-Rates/Income-Tax/Pages/Rates of Tax for 

Individuals.aspx, archived at https://perma.cc/2EVQ-GT94. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 94 

Swaziland 

In August 2017 the Central Bank of Swaziland issued a press release regarding virtual 

currencies.571 The Bank noted that cryptocurrency does not enjoy legal-tender status in 

Swaziland.572 The Bank also noted that bitcoin, a form of cryptocurrency currently being marketed 

and traded in Swaziland, is currently not regulated and this makes holding or trading the currency 

risky: 

[D]ue to its nature as a cryptocurrency, there are no restrictions, disclosures or regulatory 

compliance applicable to transactions executed using Bitcoin and yet, like any other 

currency, it can be used for illegal purposes or to facilitate fraudulent activity. In fact, the 

anonymity and speed of execution in transacting with cryptocurrency makes it more 

susceptible to abuse by unscrupulous persons. This presents a risk to users of the currency 

because there is no protection or legal recourse available from any institution including the 

Central Bank in the event that the user suffers financial loss from the use of Bitcoin or any 

other cryptocurrency.573 

Uganda 

In February 2017, the Bank of Uganda (BoU) issued a warning against the use of cryptocurrencies 

in general and the services of an unlicensed entity called One Coin Digital Money, citing the 

absence of investor protection schemes and relevant regulatory mechanisms.574 The Bank warned 

that “the entity ‘ONE COIN DIGITAL MONEY’ is not licensed by the BoU under the Financial 

Institutions Act, 2004 and is therefore conducting business outside the regulatory purview of the 

BoU,” and that the “public is strongly encouraged to do business transactions with only licensed 

financial institutions.”575 

The Bank also warned that “whoever wishes to invest their hard earned savings in Cryptocurrency 

forms such as One-coin, Bitcoin, Ripple, Peercoin, Namecoin, Dogecoin, Litecoin, Bytecoin, 

Primecoin, Blackcoin or any other forms of Digital Currency is taking a risk in the financial space 

where there is neither investor protection nor regulatory purview.”576

 

 

571 Press Statement, Central Bank of Swaziland, Public Statement on Virtual Currencies (“Bitcoin”) (Aug. 25, 2017), 

http://www.centralbank.org.sz/media/releases/cbsbitcoin.jpg, archived at https://perma.cc/GF5L-MYJ5. 

572 Id. 

573 Id. 

574 Warning to the General Public about ‘One Coin Digital Money’ Operations in Uganda, BANK OF UGANDA (Feb. 

14, 2017), https://www.bou.or.ug/bou/bou-downloads/press_releases/2017/Feb/Bank-of-Uganda-warning-on-OneCoin-Digital-Money-in-Uganda.pdf, archived at https://perma.cc/LN6N-9HE6. 

575 Id. 

576 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 95 

Zambia 

In February 2018, the Zambia Securities and Exchange Commission issued a notice on 

cryptocurrencies and other digital products.577 The Commission urged “any individuals or entities 

that are currently investing in or intend to invest in cryptocurrencies and related products/assets to 

exercise restraint and caution as they do so as the products/assets are largely unregulated and not 

subject to the jurisdiction of the Commission.”578 While it did not ban their operation, the 

Commission cautioned platforms that facilitate cryptocurrency transactions “to ensure that they 

are not in any way abrogating any part of the [Securities] Act and that those that meet the 

description of securities in accordance with the Act are registered with the Commission.”579 

Zimbabwe 

In a December 2017 statement the Reserve Bank of Zimbabwe noted that virtual currencies are 

not legal tender in Zimbabwe and remain unregulated.580 It issued the following warning to the 

public regarding the risks presented with the use of cryptocurrencies: 

[T]he use of and trading in cryptocurrencies or virtual currencies is not regulated by the 

country’s laws and presents risks such as money laundering, terrorism financing, tax 

evasion and fraud. Under the existing legal and regulatory dispensation, any person who 

invests in virtual currencies or participates in any transaction involving virtual currencies, 

does so at own risk and will not have legal protection from, or recourse against, any 

regulatory authority.581

 

 

577 Notice on Cryptocurrencies and Related Digital Products/Assets, SECURITIES AND EXCHANGE COMMISSION (Feb. 

13, 2018), http://www.seczambia.org.zm/notice-on-cryptocurrencies-and-related-digital-products-assets/, archived 

at https://perma.cc/KE69-J3KR. 

578 Id. 

579 Id. 

580 Press Statement, Reserve Bank of Zimbabwe, Use of Virtual Currencies in Zimbabwe (Dec. 20, 2017), 

http://www.rbz.co.zw/assets/press-statement---use-of-virtual-currencies-in-zimbabwe.pdf, archived at

https://perma.cc/66FA-Q6MV. 

581 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 96 

Central Asia 

Kazakhstan 

On March 30, 2018, the head of the Kazakhstan National Bank, Daniyar Akishev, stated that the 

National Bank had a very conservative position on the issue of cryptocurrencies and welcomed 

only strict restrictions because of multiple issues related to consumer protection, money 

laundering, and tax avoidance. He added that legislative amendments had already been prepared 

to prohibit the purchase and sale of cryptocurrencies for national currency, ban the activity of 

exchanges, and ban any type of mining.582 No information was found indicating that the proposed 

amendments have been enacted. 

Uzbekistan 

On February 19, 2018, President Shavkat Mirziyoyev signed a decree583 instructing the Central 

Bank of Uzbekistan and several other agencies to develop a legislative framework for the use of 

digital money on the territory of Uzbekistan by September 1, 2018.584 In September of 2017 the 

Central Bank expressed the opinion that it was not advisable to allow operations with 

cryptocurrencies because of the possibility of terrorism financing and other criminal activities.585

Kyrgyzstan 

On January 17, 2018, the head of Kyrgyzstan’s National Bank, Tolkunbek Abdygulov, stated that 

the Bank did not plan to impede the development of the cryptocurrency market in Kyrgyzstan. He 

noted that it is very difficult to ban something that the Central Bank does not issue and that citizens 

of Kyrgyzstan investing in cryptocurrency do so at their own risk and peril.586 In October of 2017 

the Central Bank reportedly stated that it was not considering introducing any prohibitive or 

restrictive measures regarding the mining of cryptocurrency.587

 

582 Kazakhstan Mulls Complete Ban of Every Digital Currency Operation in Country, SPUTNIKNEWS 

INTERNATIONAL (Mar. 30, 2018), https://sputniknews.com/asia/201803301063085023-kazakhstan-digital-currencymining-ban/, archived at https://perma.cc/SNX2-KM7V. 

583 Decree of the President of the Republic of Uzbekistan No. PP-3549 of Feb. 19, 2018, NATIONAL LEGISLATIVE 

DATABASE No. 07/18/3549/0790 of Feb. 20, 2018, http://lex.uz/pages/getpage.aspx?lact_id=3564641 (in Russian), 

archived at https://perma.cc/X4N9-DXGR. 

584 Daniyar Karimov, Uzbekistan Has Revised Its Views on Virtual Currency, RG.RU (Feb. 21, 2018), 

https://rg.ru/2018/02/21/uzbekistan-peresmotrel-otnoshenie-k-virtualnoj-valiute.html (in Russian), archived at

https://perma.cc/TFH9-QHCP. 

585 Press Release, Central Bank of the Republic of Uzbekistan, On Cryptocurrency (Sept. 16, 2017), 

http://cbu.uz/uzc/press-tsentr/press-relizy/2017/09/93262/ (in Uzbek), archived at https://perma.cc/K9CS-FB9G. 

586 Maksat Elebesov, Will the Cryptocurrency Be Banned in Kyrgyzstan?, SPUTNIK KYRGYZSTAN (Jan. 17, 2018), 

https://ru.sputnik.kg/economy/20180117/1037290672/zapretyat-li-kriptovalyutu-v-kyrgyzstane-otvet-glavynacbanka.html (in Russian), archived at https://perma.cc/XA83-4NJV. 

587 Artem Petrov, Bitcoin and Others, Monetary Authorities of the Kyrgyz Republic Warn about the Risks of Using 

Cryptocurrency, RG.RU (Oct. 4, 2017), https://rg.ru/2017/10/04/nacbank-kr-predupredil-o-riskah-ispolzovaniiakriptovaliut.html (in Russian), archived at https://perma.cc/BN5S-K6QL. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 97 

Tajikistan 

On January 15, 2018, the National Bank of Tajikistan issued a statement warning the citizens of 

the republic about the risks associated with the use of cryptocurrency. The Bank believes that, due 

to their anonymity, many cryptocurrency transactions can be used for conducting doubtful 

operations. According to the Bank, cryptocurrency can be exposed to cyberattacks or used for 

money laundering and terrorist financing. The Bank also clarified that in Tajikistan cryptocurrency 

cannot be considered an official means of exchange or savings, or a unit of account.588 

 

 

588 Abdullo Ashurov, The National Bank of Tajikistan Explained Its Position on Cryptocurrencies, RADIO OZODI

(Jan. 15, 2018), https://rus.ozodi.org/a/28976882.html (in Russian), archived at https://perma.cc/553E-8JMN. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 98 

South Asia 

Bangladesh 

On December 24, 2017, the Central Bank of Bangladesh issued a cautionary notice that 

cryptocurrencies are illegal in Bangladesh.589 According to a news report, the notice states that 

“[t]ransaction [sic] with this currency may cause a violation of the existing money laundering and 

terrorist financing regulations.”590 The notice states that bitcoin transactions “are not authorized 

by the Bangladesh Bank or any regulatory agencies, and do not conform with the provisions under 

the Foreign Exchange Regulation Act, 1947; Anti-Terrorism Act, 2009; and the Money 

Laundering Prevention Act, 2012.”591 Also, according to the notice, 

[o]nline transaction [sic] of virtual currencies with any unnamed or pseudo named parties 

may cause a violation of the above-mentioned acts. . . . .[T]ransactions through online 

networks involving cryptocurrency are not approved by any central payment system and 

as such people can be financially harmed and may face legal consequences. 

Under the circumstances, the citizens have been asked to refrain from performing, 

assisting, and advertising all kind of transactions through virtual currencies like Bitcoin to 

avoid financial and legal damages.592 

Law enforcement agencies, including the Foreign Exchange Police Department, Bangladesh 

Financial Intelligence Unit (BFIU), and Bangladesh Telecommunication Regulatory Commission 

(BTRC), have reportedly already held four meetings on “hunting down those 

using cryptocurrencies.”593

 

 

589 Central Bank of Bangladesh, Cautionary Notice on Bitcoin Transactions, https://www.bb.org.bd/mediaroom/ 

noticeboard.php (in Bangladeshi), archived at https://perma.cc/7VEN-LYD7; see also Abdur Rahim Harmachi, 

Bangladesh Bank Warns Against Transaction in ‘Illegal’ Bitcoin, Other Cryptocurrencies, BDNEWS24.COM (Dec. 

27, 2017), https://bdnews24.com/economy/2017/12/27/bangladesh-bank-warns-against-transaction-in-illegalbitcoin-other-cryptocurrencies, archived at https://perma.cc/2APB-ZSZV. 

590 Golam Mowla, Central Bank Issues Notice Banning Bitcoin in Bangladesh, DHAKA TRIBUNE, (Dec. 27, 2017), 

http://www.dhakatribune.com/business/banks/2017/12/27/bangladesh-bank-ban-bitcoin/, archived at

https://perma.cc/T6DH-Y9G5. 

591 Central Bank of Bangladesh, Cautionary Notice on Bitcoin Transactions,supra note 589 (English translation 

from the original Bengali provided by Law Library Reference Librarian Shameema Rahman). 

592 Id. 

593 Golam Mowla, Police on the Hunt for Bitcoin Users in Bangladesh, DHAKA TRIBUNE (Feb. 19, 2018), 

http://www.dhakatribune.com/bangladesh/crime/2018/02/19/police-hunt-bitcoin-users-bangladesh/, archived at

https://perma.cc/M782-EKLR. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 99 

India 

The government of India stated in early 2018 that cryptocurrencies such as bitcoin are not legal 

tender in India.594 While the government has not yet enacted a regulatory framework for 

cryptocurrencies,595 the Reserve Bank of India (RBI) has advised caution on their use and has 

issued three notifications596 that “cautioned users, holders and traders on the risk of these 

currencies and clarified that it has not given any licence or authorisation to any entity or company 

to operate such schemes or deals.”597 

Most recently, on April 6, 2018, the RBI issued a notification prohibiting banks, lenders and other 

regulated financial institutions from “dealing with virtual currencies,” which stipulated that “[i]n 

view of the associated risks, it has been decided that, with immediate effect, entities regulated by 

the Reserve Bank shall not deal in VCs or provide services for facilitating any person or entity in 

dealing with or settling VCs. Such services include maintaining accounts, registering, trading, 

settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening 

accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to 

purchase/ sale of VCs.”598 Moreover, the RBI stated that “[r]egulated entities which already 

provide such services shall exit the relationship within three months from the date of this 

circular.”599 However, Deputy Governor B.P. Kanungo, in a policy press conference, did 

“recognize that the blockchain technology or the distributed ledger technology that lies beneath 

the virtual currencies has potential benefits for financial inclusion and enhancing the efficiency of 

the financial system” and stated that the RBI has “constituted an inter-departmental committee in 

Reserve Bank of India who will produce a report and they will explore the feasibility and 

desirability of issuing a digital currency by the central bank.”600

 

594 P. Suchetana Ray, Govt Plans to Bring in Law to Regulate Cryptocurrency Trade, Forms Panel, HINDUSTAN 

TIMES (Jan. 14, 2018), https://www.hindustantimes.com/india-news/government-plans-to-bring-in-law-to-regulatecryptocurrency-trade/story-SpAO63DDfk6Gg7lo5yNKCJ.html, archived at https://perma.cc/6HLK-G9LD. 

595 Seema Jhingan et al., LexCounsel Law Offices, India: Legal Status of Virtual Currencies/Cryptocurrencies in 

India, MONDAQ (Apr. 6, 2017), http://www.mondaq.com/india/x/583670/fin+tech/Legal+Status+Of+Virtual+ 

CurrenciesCryptocurrencies+In+India, archived at https://perma.cc/5H4T-Y3TT. 

596 Press Release, Reserve Bank of India, RBI Cautions Users of Virtual Currencies against Risks (Dec. 24, 2013), 

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=30247, archived at https://perma.cc/KFB8-JPZ7; 

Press Release, Reserve Bank of India, RBI Cautions Users of Virtual Currencies (Feb. 1, 2017), https://www.rbi. 

org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=39435, archived at https://perma.cc/9VTJ-UEL2; Press Release, 

Reserve Bank of India, Reserve Bank Cautions Regarding Risk of Virtual Currencies including Bitcoins (Dec. 5, 

2017), https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=42462, archived at https://perma.cc/B4TKTL5U. 

597 Vivina Vishwanathan, Bitcoin Regulations in India, LIVEMINT (Dec. 21 2017), http://www.livemint.com/ 

Money/uQIHZ7521LBgHClnuP66YM/Bitcoin-regulations-in-India.html, archived at https://perma.cc/527R-43SG. 

598 Press Release, Reserve Bank of India, Prohibition on Dealing in Virtual Currencies (VCs) (Apr. 6, 2018), 

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11243&Mode=0, archived at https://perma.cc/EFW3-

HCXG. 

599 Id. 

600 Reserve Bank of India, Edited Transcript of Reserve Bank of India’s First Bi-Monthly Policy Press Conference 

(Apr. 5, 2018), https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=3465, archived at https://perma.cc/ZD5ASTF7. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 100 

Reports in early 2018 indicated that the government is in the process of drafting a law to regulate 

trade of cryptocurrencies in India and “has formed a committee to fast track the process,” according 

to the Hindustani Times.

601 The government has expressed two main concerns that the law will 

address: “the source of money being used to trade in [cryptocurrencies]; and regulation of 

exchanges of VC [virtual currency] to protect the common man,” one government official was 

quoted as saying.602 

An interdisciplinary committee, chaired by the Special Secretary (Economic Affairs), was 

established in April 2017 “to examine the existing framework with regard to Virtual 

Currencies.”603 The committee has nine members including representatives from the Department 

of Economic Affairs, Department of Financial Services, Department of Revenue (CBDT), 

Ministry of Home Affairs, Ministry of Electronics and Information Technology, Reserve Bank of 

India, National Institution for Transforming India (NITI Aayog), and State Bank of India. The role 

of the committee is to 

(i) take stock of the present status of Virtual Currencies both in India and globally; (ii) 

examine the existing global regulatory and legal structures governing Virtual Currencies; 

(iii) suggest measures for dealing with such Virtual Currencies including issues relating to 

consumer protection, money laundering, etc.; and (iv) examine any other matter related to 

Virtual Currencies which may be relevant.604 

On August 7, 2017, Business Line reported that the committee had submitted its report, but details 

of the report had not been made available to the public.605

On December 29, 2017, India’s Ministry of Finance released a press statement that cautioned 

investors about the “real and heightened” risks of trading in cryptocurrencies such as bitcoin, 

saying virtual currency investments are similar to “Ponzi schemes.”606 According to a February 1, 

2018, news report, the Minister of Finance told lawmakers in Parliament that “[t]he government 

does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use 

of these crypto-assets in financing illegitimate activities or as part of the payment system,” but 

 

601 Ray, supra note 594. 

602 Id. 

603 Press Release, Government of India, Ministry of Finance, Government Constitutes an Inter-Disciplinary 

Committee Chaired by Special Secretary (Economic Affairs) to Examine the Existing Framework with Regard to 

Virtual Currencies (Apr. 12, 2017), http://pib.nic.in/newsite/PrintRelease.aspx?relid=160923, archived at

https://perma.cc/B952-YSLS. 

604 Id. 

605 Panel on Crypto-currency Submits Report to Jaitley, BUSINESS LINE (Aug. 7, 2017), https://www.thehindu 

businessline.com/economy/policy/panel-on-cryptocurrency-submits-report-to-jaitley/article9805978.ece, archived at

https://perma.cc/3N3G-352Q. 

606 Press Release, Government of India, Ministry of Finance, Government Cautions People Against Risks in 

Investing in Virtual ‘Currencies’; Says VCs are like Ponzi Schemes (Dec. 29, 2017), http://www.pib.nic.in/ 

PressReleseDetail.aspx?PRID=1514568, archived at https://perma.cc/MN8M-BWQE. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 101 

“[t]he government will explore use of blockchain technology proactively for ushering in [the] 

digital economy.”607

On November 13, 2017, the Supreme Court of India admitted under article 32 of the Constitution 

a Public Interest Litigation writ petition against the Union of India and issued a notice608 to the 

Ministry of Finance, Minister of Law and Justice, Ministry of Electronics and Information 

Technology, Securities and Exchange Board of India, and Reserve Bank of India. The petition 

seeks “a regulatory framework to be laid down on Crypto Currency and wanted that the virtual 

currency be made accountable to the exchequer.”609

The Supreme Court previously heard a petition in July 2017 that sought “a similar kind of 

regulatory framework”: 

A Public Interest Litigation [PIL] was filed (Writ Petition (Civil) no. 406 of 2017) under 

Article 32 of the Constitution against Union of India, Ministry of Finance and the Reserve 

Bank of India over the use and business of Bitcoins, Litecoins, Ethereum etc. The Supreme 

Court on July 14, 2017, directed the RBI and the other concerned ministries to clarify their 

stance and enact a bill on the same before disposing off the PIL.610

Nepal 

On August 13, 2017, Nepal Rastra Bank issued a notice that “all transactions related to or regarding 

bitcoins are illegal.”611 In early October 2017, a police team from the Central Investigation Bureau 

(CIB) of the Nepal Police “for the first time arrested seven persons for allegedly running bitcoin 

exchange business from various parts of the country,” the Kathmandu Post reported.612

 

 

607 India Turns Against Bitcoin but Embraces Blockchain, BLOOMBERG (Feb. 1, 2018), https://www.bloomberg. 

com/news/articles/2018-02-01/india-to-curb-cryptocurrency-use-while-embracing-blockchain, archived at

https://perma.cc/A5QP-YPBB. 

608 Dwaipayan Bhowmick v. Union of India & Ors., Writ Petition (Civ.) No. 1076/2017 (Nov. 13, 2017), 

http://supremecourtofindia.nic.in/supremecourt/2017/35252/35252_2017_Order_13-Nov-2017.pdf, archived at

https://perma.cc/52JQ-8RAB. 

609 SS Rana & Co., India: SC Asks Govt. to Regulate Crypto Currency, LEXOLOGY (Nov. 21 2017), 

https://www.lexology.com/library/detail.aspx?g=4cc566a7-048b-449a-b535-9eb7b3626f78#_ftn1, archived at

https://perma.cc/ED6V-EK8B. 

610 Id. 

611 Nepal Rastra Bank (NRB), Bitcoin Notice, https://nrb.org.np/fxm/notices/BitcoinNotice.pdf (in Bangladeshi), 

archived at https://perma.cc/856B-8JQ8; see also Atit Babu Rijal, Op-Ed., The Future of Cryptocurrencies, 

KATHMANDU POST (Dec 27, 2017), http://kathmandupost.ekantipur.com/news/2017-12-27/the-future-ofcryptocurrencies.html, archived at https://perma.cc/EQG6-HMT6. 

612 7 Nabbed for Running Bitcoin Exchange Business, KATHMANDU POST (Dec. 27, 2017), http://kathmandu 

post.ekantipur.com/news/2017-10-06/7-nabbed-for-running-bitcoin-exchange-business.html, archived at 

https://perma.cc/J4BY-4Q7E. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 102 

Pakistan 

Currently there does not appear to be any specific law that regulates cryptocurrencies or the trade 

in cryptocurrencies in Pakistan. In May 2017, the State Bank of Pakistan (SBP) stated that it does 

not recognize digital currencies.613 On April 6, 2018, the SBP issued a press release cautioning the 

general public on the risk of virtual currencies: 

[The] General Public is advised that Virtual Currencies/Coins/Tokens (like Bitcoin, 

Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond etc.) are neither recognized as a Legal 

Tender nor has SBP authorized or licensed any individual or entity for the issuance, sale, 

purchase, exchange or investment in any such Virtual Currencies/Coins/Tokens in 

Pakistan. Further, Banks/ DFIs/ Microfinance Banks and Payment System Operators 

(PSOs)/ Payment Service Providers (PSPs) have been advised not to facilitate their 

customers/account holders to transact in Virtual Currencies/ Initial Coin Offerings (ICOs) 

/Tokens vide BPRD’s Circular No. 03 of 2018.614

The Federal Board of Revenue (FBR) “is currently investigating the traders of digital currencies 

for tax evasion and money laundering,” according to news sources.615 Moreover, the Federal 

Investigation Agency (FIA) has “launched operations against the people dealing in 

the cryptocurrencies,” according to a February 10, 2018, news report.616 

 

 

613 Mubarak Zeb Khan, FBR Goes After Bitcoin Trader, DAWN (May 25, 2017), https://www.dawn.com/news/ 

1335184, archived at https://perma.cc/7VBW-LL6C. 

614 Press Release, State Bank of Pakistan (SBP), Caution Regarding Risks of Virtual Currencies (Apr. 6 2018), 

http://www.sbp.org.pk/press/2018/Pr-VC-06-Apr-18.pdf, archived at https://perma.cc/L76H-PN8U. 

615 Mubarak Zeb Khan, supra note 613. 

616 Nozair Hanif Mirza, FIA Springs Into Action Against Cryptocurrencies, One Held, DAILY PAKISTAN (GLOBAL) 

(Feb. 10, 2018), https://en.dailypakistan.com.pk/pakistan/fia-swings-into-action-against-cryptocurrencies-one-held/, 

archived at https://perma.cc/P7KK-RK7G. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 103 

East Asia and the Pacific 

Australia 

In August 2015, the Australian Parliament’s Senate Economic References Committee published a 

report titled “Digital Currency – Game Changer or Bit Player,”617 following the completion of an 

inquiry into “how to develop an effective regulatory system for digital currency, the potential 

impact of digital currency technology on the Australian economy, and how Australia can take 

advantage of digital currency technology.”618 The government responded to the Committee’s 

recommendations in May 2016.619 This included responses regarding the tax treatment of 

cryptocurrencies, which noted aspects of the following actions of the Australian Taxation 

Office (ATO). 

The ATO has published a guidance document on the tax treatment of virtual currencies.620 The 

general guidance follows the finalization, in December 2014, of various rulings relating to the 

application of tax laws to bitcoin and other cryptocurrencies.621 According to the guidance, 

transacting with cryptocurrencies is “akin to a barter arrangement, with similar tax 

consequences.”622 This is because, in the view of the ATO, such currencies are “neither money nor 

 

617 SENATE ECONOMIC REFERENCES COMMITTEE, DIGITAL CURRENCY – GAME CHANGE OR BIT PLAYER (Aug. 2015), 

https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Digital_currency/~/media/Committ

ees/economics_ctte/Digital_currency/report.pdf, archived at https://perma.cc/9C8Z-L76P. 

618 Digital Currency, PARLIAMENT OF AUSTRALIA, https://www.aph.gov.au/Parliamentary_Business/Committees/ 

Senate/Economics/Digital_currency (last visited Mar. 1, 2018), archived at https://perma.cc/T5XB-BNY2. 

619 Australian Government Response to the Senate Economic References Committee Report: Digital Currency – 

Game Changer or Bit Player (May 2016), https://www.aph.gov.au/DocumentStore.ashx?id=4f9bcf03-5867-449c85ad-b8dd01d7459c, archived at https://perma.cc/U6WP-VYKU. 

620 Tax Treatment of Crypto-Currencies in Australia – Specifically Bitcoin, AUSTRALIAN TAXATION OFFICE (ATO), 

https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia---specifically-bitcoin/ (last 

updated Dec. 21, 2017), archived at https://perma.cc/UFZ7-QSUG. 

621 ATO, Income Tax: Is Bitcoin a ‘Foreign Currency’ for the Purposes of Division 775 of the Income Tax 

Assessment Act 1997 (ITAA 1997)? (TD 2014/25), https://www.ato.gov.au/law/view/document?src=hs&pit= 

99991231235958&arc=false&start=1&pageSize=10&total=7&num=3&docid=TXD/TD201425/NAT/ATO/00001&

dc=false&tm=and-basic-TD 2014/25 (last visited Mar. 1, 2018), archived at https://perma.cc/DS47-Y2JW; ATO, 

Income Tax: Is Bitcoin a ‘CGT Asset’ for the Purposes of Subsection 108-5(1) of the Income Tax Assessment Act 

1997? (TD 2014/26), https://www.ato.gov.au/law/view/document?src=hs&pit=99991231235958&arc= 

false&start=1&pageSize=10&total=7&num=2&docid=TXD/TD201426/NAT/ATO/00001&dc=false&tm=phrasebasic-TD 2014/26 (last visited Mar. 1, 2018), archived at https://perma.cc/B9QN-N4FM; ATO, Income Tax: Is 

Bitcoin Trading Stock for the Purposes of Subsection 70-10(1) of the Income Tax Assessment Act 1997 (ITAA 

1997)? (TD 2014/27), https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia---

specifically-bitcoin/ (last visited Mar. 1, 2018), archived at https://perma.cc/BS2E-UZKW; ATO, Fringe Benefits 

Tax: Is the Provision of Bitcoin by an Employer to an Employee in Respect of their Employment a Property Fringe 

Benefit for the Purposes of Subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986? (TD 2014/28), 

https://www.ato.gov.au/law/view/document?src=mm&pit=99991231235958&arc=false&start=1&pageSize=10&tot

al=7&num=0&docid=TXD/TD201428/NAT/ATO/00001&dc=true&tm=and-basic-TD 2014/25 (last visited Mar. 1, 

2018), archived at https://perma.cc/Y5FS-VYL3. 

622 Tax Treatment of Crypto-Currencies in Australia – Specifically Bitcoin, supra note 620. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 104 

a foreign currency.”623 Individuals who engage in cryptocurrency transactions are advised to keep 

records of the date of transactions; the amount in Australian dollars (“which can be taken from a 

reputable online exchange”); what the transaction was for; and who the other party was (“even if 

it’s just their bitcoin address”).624

Cryptocurrencies may be considered assets for capital gains tax purposes, with the guidance 

stating: “Where you use bitcoin to purchase goods or services for personal use or consumption, 

any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) 

provided the cost of the bitcoin is $10,000 or less.”625

With regard to business transactions, the ATO guidance states that the Australian dollar value of 

bitcoins (being the fair market value) received for goods and services must be recorded as part of 

ordinary income, in the same way as receiving non-cash consideration under a barter transaction.626

A business that purchases items using bitcoin is “entitled to a deduction based on the arm’s length 

value of the item acquired.”627 Goods and services tax (GST) is also payable and is calculated on 

the market value of the goods or services, which is “ordinarily equal to the fair market value of the 

bitcoin at the time of the transaction.”628 When a business disposes of bitcoin, there may be capital 

gains tax consequences. If a business gives bitcoin to an employee this may be considered either a 

fringe benefit (if there is a valid salary sacrifice arrangement in order to receive the bitcoin) or 

normal salary and wages. If an entity is in the business of mining bitcoin, or buying and selling 

bitcoin as an exchange service, any income derived must be included in its assessable income, and 

any expenses incurred may be deducted.629

The ATO has also published separate guidance on the application of the goods and services tax 

(GST) with respect to transactions involving digital currency.630 A previous ruling regarding GST 

was withdrawn in December 2017 following the passage of amendments to A New Tax System 

(Goods and Service Tax) Act 1999 and associated regulations, which apply to transactions after 

July 1, 2017.631 Under the amendments, sales and purchases of digital currency are not subject to 

GST. If a person is carrying on a business in relation to digital currency, or accepting digital 

 

623 Id.

624 Id.

625 Id.

626 Id.

627 Id.

628 Id.

629 Id.

630 GST and Digital Currency, ATO, https://www.ato.gov.au/business/gst/in-detail/your-industry/financial-servicesand-insurance/gst-and-digital-currency/ (last updated Dec. 8, 2017), archived at https://perma.cc/L2MT-WHHC. 

631 Goods and Services Tax Ruling: GSTR 2014/W, ATO, https://www.ato.gov.au/law/view/document?DocID= 

GST/GSTR20143/NAT/ATO/00001 (last visited Mar. 1, 2018), archived at https://perma.cc/6YAU-SYF3; Treasury 

Laws Amendment (2017 Measures No. 6) Act 2017 (Cth), https://www.legislation.gov.au/Details/C2017A00118, 

archived at https://perma.cc/6TB9-V9QU. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 105 

currency as a payment as part of a business, then there are GST consequences.632 The changes 

were aimed at removing “double taxation” of digital currencies under the GST system.633

According to news reports from January 2018, the ATO is consulting with tax experts “to help it 

identify and track cryptocurrency transactions and ensure all taxes are being paid.”634

The Australian Securities and Investments Commission’s (ASIC’s) MoneySmart website provides 

information on virtual currencies and sets out various risks associated with buying, trading, or 

investing in such currencies.635 These include the fact that there are few safeguards because the 

exchange platforms are generally not regulated; large fluctuations in value; possible theft by 

hackers; and the popularity of virtual currencies with criminals. A separate page provides 

information about initial coin offerings, which ASIC calls a “high-risk speculative investment.”636

In the area of anti-money laundering and counterterrorism financing (AML/CTF), the government 

introduced a bill in Parliament in August 2017 in order bring digital currency exchange providers 

under the AML/CTF regulatory regime, as recommended by the Senate committee referred to 

above.637 The bill was enacted in December 2017 and the relevant provisions came into force on 

April 3, 2018.638 

Under the amendments, digital currency exchanges will be required to enroll in a register 

maintained by AUSTRAC (Australian Transaction Reports and Analysis Centre) and implement 

an AML/CTF program “to mitigate the risks of money laundering as well as identify and verify 

the identity of their customers.”639 They will also be required to report suspicious transactions and 

maintain certain records. 

 

632 GST and Digital Currency, supra note 630. 

633 GST – Removing the Double Taxation of Digital Currency, ATO, https://www.ato.gov.au/General/Newlegislation/In-detail/Indirect-taxes/GST/GST---removing-the-double-taxation-of-digital-currency/ (last updated Dec. 

18, 2017), archived at https://perma.cc/L7KG-NWK2. 

634 Duncan Hughes, ATO Creates Specialist Task Force to Tackle Cryptocurrency Tax Evasion, FINANCIAL REVIEW

(Jan. 10, 2018), http://www.afr.com/news/policy/tax/ato-creates-specialist-task-force-to-tackle-cryptocurrency-taxevasion-20180109-h0fyaz, archived at https://perma.cc/VNY2-R6G3. 

635 Virtual Currencies, ASIC’S MONEYSMART, https://www.moneysmart.gov.au/investing/investment-warnings/ 

virtual-currencies (last updated Dec. 1, 2017), archived at https://perma.cc/SCJ8-2WS3. 

636 Initial Coin Offerings (ICOs), ASIC’S MONEYSMART, https://www.moneysmart.gov.au/investing/investmentwarnings/initial-coin-offerings-icos (last updated Nov. 10, 2017), archived at https://perma.cc/YYW7-SZMS. 

637 Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017, PARLIAMENT OF AUSTRALIA, 

https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5952 (last 

visited Mar. 26, 2018), archived at https://perma.cc/3LS8-TZ5L; Anti-Money Laundering and Counter-Terrorism 

Financing Amendment Act 2017 (Cth) sch 1 pt 2, https://www.legislation.gov.au/Details/C2017A00130, archived at 

https://perma.cc/892P-DQ5W. 

638 Digital Currency Exchange Providers, AUSTRAC, http://www.austrac.gov.au/digital-currency-exchangeproviders (last updated Mar. 13, 2018), archived at https://perma.cc/X4DK-SJ8X. 

639 Rohan Pearce, Government Cracks Down on Bitcoin Money Laundering, COMPUTERWORLD (Aug. 17, 2017), 

https://www.computerworld.com.au/article/626134/government-cracks-down-bitcoin-money-laundering/, archived 

at https://perma.cc/PW5D-U3SD. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 106 

Brunei 

On December 22, 2017, the Central Bank of Brunei, Autoriti Monetari Brunei Darussalam 

(AMBD), released a statement reminding the public that “cryptocurrencies are not legal tender in 

Brunei Darussalam and are not regulated by AMBD,” and advising the public “to be vigilant and 

exercise extreme caution when dealing with such currencies that are privately issued.”640 The press 

statement also added that 

AMBD would like to remind the public to be careful when participating in any investment 

plans or financial transactions. The public is advised not to be easily enticed by any 

investment or financial activity advertisements, and to conduct due diligence and 

understand the financial products properly before participating.641

China 

China’s central bank, the People’s Bank of China (PBOC), has been conducting a study of digital 

currency for over three years, and has set up an Institute of Digital Money within the PBOC.642 

Zhou Xiaochuan, the then governor of the PBOC, addressed the current regulatory status of virtual 

currencies in a press conference held during the annual National People’s Congress session in 

March 2018, when he was stepping down. According to Zhou, Chinese regulators are not 

recognizing virtual currencies such as bitcoin as a tool for retail payments like paper bills, coins, 

or credit cards. The banking system is not accepting any existing virtual currencies or providing 

relevant services, he said.643

Previously, on September 4, 2017, seven central government regulators—the PBOC, the 

Cyberspace Administration of China (CAC), the Ministry of Industry and Information Technology 

(MIIT), the State Administration for Industry and Commerce (SAIC), the China Banking 

Regulatory Commission (CBRC), the China Securities Regulatory Commission (CSRC), and the 

China Insurance Regulatory Commission (CIRC) —jointly issued the Announcement on 

Preventing Financial Risks from Initial Coin Offerings, which banned initial coin offerings (ICOs) 

in China.644 According to the Announcement, ICO financing that raises “so-called ‘virtual 

currencies’ such as Bitcoin and Ethereum” through the irregular sale and circulation of tokens is 

essentially public financing without approval, which is illegal.645 The Announcement warned that 

 

640 Press Release, Autoriti Monetari Brunei Darussalam, Public to Exercise High Caution with Cryptocurrencies 

(Dec. 22, 2017), http://www.ambd.gov.bn/SiteAssets/Lists/News/News/AMBD Press Release - Crypto 

currencies.pdf, archived at https://perma.cc/4N9M-AL26. 

641 Id. 

642 Zhou Xiaochuan: Future Regulation on Virtual Currency Will Be Dynamic, Imprudent Products Shall Be 

Stopped for Now, XINHUANET (Mar. 1, 2018), http://www.xinhuanet.com/finance/2018-03/10/c_129826604.htm (in 

Chinese), archived at https://perma.cc/2CW7-8F2T. 

643 Id.

644 PBOC, CAC, MIIT, SAIC, CBRC, CSRC, and CIRC Announcement on Preventing Financial Risks from Initial 

Coin Offerings (Sept. 4, 2017), http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/3374222/index.html (in 

Chinese), archived at https://perma.cc/N88N-5CV5. 

645 Id. (all translations by author). 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 107 

tokens or virtual currencies involved in ICO financing are not issued by monetary authorities and 

therefore not mandatorily-accepted legal tender, and thus do not have equal legal status with fiat 

currencies and “cannot and should not be circulated and used in the market as currencies.”646

As early as December 3, 2013, the PBOC, MIIT, CBRC, CSRC, and CIRC jointly issued a notice 

warning the public about the risks of bitcoin, the Notice on Precautions Against the Risks of 

Bitcoins.647 The circular defined bitcoin as “by nature a special virtual commodity,” which “does 

not have equal legal status as currencies” and “cannot and should not be circulated in the market 

as a currency.”648 According to the notice, banks and payment institutions in China are prohibited 

from dealing in bitcoins. Financial and payment institutions are prohibited from using bitcoin 

pricing for products or services or buying or selling bitcoins, nor can they provide direct or indirect 

bitcoin-related services, including registering, trading, settling, clearing, or other services; accept 

bitcoins or use bitcoins as a clearing tool; or trade bitcoins with Chinese yuan or 

foreign currencies.649 

Cambodia650

The status of cryptocurrencies in Cambodia is ambiguous. The National Bank of Cambodia (NBC) 

“signed an agreement with a Japanese firm . . . to develop a blockchain-based project for its own 

internal use, which would track interbank lending and transactions” in April 2017.651 However, it 

only addresses interbank transactions. The NBC has “asked banks in Cambodia not to allow 

people to conduct transactions with cryptocurrencies.”652 

At the Fourth Annual NBC Macroeconomic Conference on December 5, 2017, NBC Director 

General Chea Serey stated that activities of a handful of companies operating in Cambodia that 

tried to persuade people to use cryptocurrencies for everyday purchases and other financial 

transactions were “not legal as digital currencies are not issued or backed up by any 

government.”653 However, she also stated that “digital currencies are not illegal in the Kingdom” 

 

646 Id.

647 PBOC, MIIT, CBRC, CSRC, and CIRC Notice on Precautions Against the Risks of Bitcoins (Dec. 3, 2013), 

http://www.miit.gov.cn/n1146295/n1652858/n1652930/n3757016/c3762245/content.html (in Chinese), archived at

https://perma.cc/S4DN-DXHD. 

648 Id.

649 Id.

650 At present there are no Law Library of Congress research staff members versed in Khmer. This report has been 

prepared by the author’s reliance on practiced legal research methods and on the basis of relevant legal resources, 

chiefly in English, currently available in the Law Library and online. 

651 Robin Spiess, Uncertainty over Future of Cryptocurrencies in Cambodia, PHNOM PENH POST (Mar. 9, 2018), 

http://www.phnompenhpost.com/business/uncertainty-over-future-cryptocurrencies-cambodia, archived at

https://perma.cc/6KFF-NQTA. 

652 Sok Chan, Bitcoin a Risky Business, NBC Warns, KHMER TIMES (Dec. 6, 2017), http://www.khmertimeskh. 

com/5094114/bitcoin-risky-business-nbc-warns/, archived at https://perma.cc/8UC3-4HFK. 

653 Id. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 108 

and “asked users to be wary of them and extremely careful when using them.”654 In a December 

29, 2017, press release the NBC reaffirmed that it “never allowed the purchase-sale and circulation 

of any form of cryptocurrencies.”655

Hong Kong 

On February 9, 2018, Hong Kong’s Securities and Futures Commission (SFC) alerted investors to 

the potential risks of dealing with cryptocurrency exchanges and investing in initial coin offerings 

(ICOs).656 In the alert, the SFC said it has taken regulatory action against a number of 

cryptocurrency exchanges and issuers of ICOs. The SFC has warned cryptocurrency exchanges 

in Hong Kong or with connections to Hong Kong that they should not trade cryptocurrencies, 

which it characterized as “securities” as defined in the Securities and Futures Ordinance, without 

a license. The SFC also wrote to seven ICO issuers and most of them confirmed compliance with 

the SFC’s regulatory regime or immediately ceased to offer tokens to Hong Kong investors. The 

SFC stated it would continue to police the market and engage in enforcement actions when 

necessary, and also urged market professionals to do proper gatekeeping to prevent fraud or 

dubious fundraising, and to assist the SFC in ensuring compliance with the law.657

The new alert follows a statement on ICOs issued by the SFC on September 5, 2017.658 That 

statement explained that, depending on the facts and circumstances of an ICO, digital tokens that 

are offered or sold may be “securities” as defined in the Securities and Futures Ordinance, and 

therefore subject to the securities laws of Hong Kong.659 According to the statement, 

[w]here the digital tokens involved in an ICO fall under the definition of “securities”, 

dealing in or advising on the digital tokens, or managing or marketing a fund investing in 

such digital tokens, may constitute a “regulated activity”. Parties engaging in a “regulated 

activity” are required to be licensed by or registered with the SFC irrespective of whether 

the parties involved are located in Hong Kong, so long as such business activities target 

the Hong Kong public.660 

On January 8, 2014, in replying to a question raised at the meeting of the Legislative Council on 

the use of bitcoin, the Secretary for Financial Services and the Treasury said virtual currencies 

 

654 Id. 

655 Press Release, NBC, The National Bank of Cambodia Denies the False Information Stating that the NBC Has 

Cooperated with Chaintope Company (Dec. 29, 2017), https://www.nbc.org.kh/english/news_and_events/ 

news_info.php?id=344, archived at https://perma.cc/QB84-FPAW. 

656 SFC Warns of Cryptocurrency Risks, SECURITIES AND FUTURES COMMISSION (Feb. 9, 2018), https://www.sfc.hk/ 

edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR13, archived at

https://perma.cc/K72W-NUTC. 

657 Id.

658 Securities and Futures Commission, Statement on Initial Coin Offerings (Sept. 5, 2017), http://www.sfc.hk/web/ 

EN/news-and-announcements/policy-statements-and-announcements/statement-on-initial-coin-offerings.html, 

archived at https://perma.cc/8VYV-W7D7. 

659 Id.

660 Id.
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 109 

such as bitcoin are not considered as legal tender but are virtual commodities in Hong Kong, and 

warned about the risks of using virtual currencies.661 According to the Secretary, 

[i]t would be quite risky to convert, trade or hold such virtual currencies as their value is 

not backed by any physical items, issuers or the real economy. There are specified upper 

limits to the overall size of the issue of such virtual currencies, but no guarantee of their 

convertibility into a legal tender or commodities in the real economy. Also, the price of 

virtual currencies may be susceptible to significant fluctuations due to individual 

speculative activities.662 

On March 25, 2015, the Secretary responded to another question on the regulation of bitcoin 

trading activities raised at the meeting of the Legislative Council.663 In the statement, the Secretary 

reiterated there were no specific regulatory measures on virtual commodities such as bitcoin in 

Hong Kong, but existing laws provide for sanctions against unlawful acts such as money 

laundering, terrorist financing, fraud, pyramid schemes, and cybercrimes, with or without virtual 

commodities being involved. The police will take enforcement action if they find criminal conduct 

involving virtual commodities by conducting patrols, including searching for relevant information 

via public platforms on the Internet, the Secretary said. The Hong Kong Government and financial 

regulators will also keep a close watch on the development of bitcoin and other virtual 

commodities, he said.664

Indonesia 

On January 13, 2018, Bank Indonesia (Indonesia’s central bank) released a statement that warns 

against buying, selling, or otherwise trading in virtual currencies.665 The statement includes 

the following: 

Bank Indonesia affirms that virtual currencies, including bitcoin, are not recognized as 

legitimate instrument of payment, therefore not allowed to be used for payment in 

Indonesia. This is in line with Act No. 7/2011 on The Currency,666 which states that 

currency shall be money of which issued by the Republic of Indonesia and every 

transaction that has the purpose of payment, or other obligations which need to be fulfilled 

 

661 Press Release, Government of Hong Kong, LCQ1: Monitoring the Use of Bitcoins (Jan. 8, 2014), http://www. 

info.gov.hk/gia/general/201401/08/P201401080357.htm, archived at https://perma.cc/AY9N-B58F. 

662 Id.

663 Press Release, Government of Hong Kong, LCQ4: Regulation of Trading Activities of Bitcoins (Mar. 25, 2015), 

http://www.info.gov.hk/gia/general/201503/25/P201503250463.htm, archived at https://perma.cc/WK74-B453. 

664 Id.

665 Press Release, Bank Indonesia, Bank Indonesia Warns All Parties Not to Sell, Buy, or Trade Virtual Currency 

(Jan. 13, 2018), http://www.bi.go.id/en/ruang-media/siaran-pers/Pages/sp_200418.aspx, archived at 

https://perma.cc/ELQ5-PHTW. 

666 Undang-Undang Nomor 7 Tahun 2011 Tentang Mata Ung [Law Number 7 of 2011 Concerning Currency], 

http://www.bi.go.id/id/tentang-bi/uu-bi/Documents/UU 7 Tahun 2011.pdf (in Indonesian), archived at 

https://perma.cc/DNX8-FR6Z. An unofficial English translation of this law is available at http://www.flevin.com/ 

id/lgso/translations/Laws/Law No. 7 of 2011 on Currency (MoF).pdf, archived at https://perma.cc/9NQL-SHYU. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 110 

with money, or other financial transactions conducted within the territory of the Republic 

of Indonesia, has to be fulfilled with Rupiah.667

The statement goes on to say that ownership of virtual currency is “highly risky,” “vulnerable to 

bubble risks,” and “susceptible to be used for money laundering and terrorism financing.” Bank 

Indonesia therefore considers that such currencies “can potentially impact financial system 

stability and cause financial harm to society.”668 It also refers to Bank Indonesia Regulation No. 

18/40/PBI/2016 on Implementation of Payment Transaction Processing669 and Bank Indonesia 

Regulation No. 19/12/PBI/2017 on Implementation of Financial Technology670 in affirming that, 

as the payment system authority, the Bank forbids all payment system operators and financial 

technology operators in Indonesia from processing transactions using virtual currencies.671

This statement was supported by the Minister of Finance who, in a press conference on January 

23, 2018, warned that virtual currencies are a high-risk and speculative investment and said that 

“[w]e will also continue to function as a government that conveys the view that it is not in 

accordance with the Law to be used as a means of transaction.”672

The Bank’s statement follows an earlier press release in 2014, in which it encouraged caution with 

respect to virtual currencies and stated that “[i]n view of the Act No. 7 Year 2012 [sic] concerning 

Currency and Act No. 23 Year 1999[673] which has been amended several times, the latest with Act 

No. 6 Year 2009,[674] Bank Indonesia states that bitcoin and other virtual currency are not currency 

or legal payment instrument in Indonesia.”675 

 

 

667 Press Release, Bank Indonesia, supra note 665. 

668 Id.

669 Peraturan Bank Indonesia Nomor 18/40/PBI/2016 Tentang Penyelenggaraan Pemrosesan Transaksi Pembayaran, 

http://www.bi.go.id/id/peraturan/sistem-pembayaran/Documents/PBI_184016.pdf (in Indonesian), archived at 

https://perma.cc/JBX8-44U7. 

670 Peraturan Bank Indonesia Nomor 19/12/PBI/2017 Tentang Penyelenggaraan Teknologi Finansial, 

http://www.bi.go.id/id/peraturan/sistem-pembayaran/Documents/PBI_191217.pdf (in Indonesian), archived at 

https://perma.cc/6XTJ-ERCQ. 

671 Press Release, Bank Indonesia, supra note 665. 

672 Minister of Finance: Bitcoin is Not in Line with the Law, KEMENTERIAN KEUNANGAN [MINISTRY OF FINANCE], 

(Jan. 25, 2018), https://www.kemenkeu.go.id/en/publications/news/minister-of-finance-bitcoin-is-not-in-line-withlaw/, archived at https://perma.cc/3MEJ-HHUP. 

673 Act No. 23 of 199 Concerning Bank Indonesia, http://www.bi.go.id/en/tentang-bi/uu-bi/Documents/act2399.pdf

(unofficial English translation), archived at https://perma.cc/6S8P-FFZH. 

674 Act No. 6 of 2009 Concerning Stipulation of Government Regulation in Lieu of Act No. 2 of 2008 Concerning 

Second Amendment to the Act No. 23 of 1999 Concerning Bank Indonesia into Act, http://www.bi.go.id/en/tentangbi/uu-bi/Documents/BIact_0609.pdf (unofficial English translation), archived at https://perma.cc/FRZ5-ZZG5. 

675 Press Release, Bank Indonesia, Statement of Bank Indonesia Related to Bitcoin and Other Virtual Currency (Feb. 

6, 2014), http://www.bi.go.id/en/ruang-media/siaran-pers/Pages/SP_160614.aspx, archived at 

https://perma.cc/3MEJ-HHUP. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 111 

Japan 

In Japan, cryptocurrency exchange businesses are regulated. The Payment Services Act was 

amended in June 2016 and the amendment took effect on April 1, 2017.676 The amended Payment 

Services Act defines “cryptocurrency”677 as 

 property value that can be used as payment for the purchase or rental of goods or provision of 

services by unspecified persons, that can be purchased from or sold to unspecified persons, 

and that is transferable via an electronic data processing system; or 

 property value that can be mutually exchangeable for the above property value with 

unspecified persons and is transferable via an electronic data processing system. 

The Act also states that cryptocurrency is limited to property values that are stored electronically 

on electronic devices; currency and currency-denominated assets are excluded.678 

Under the Payment Services Act, only business operators registered with a competent local 

Finance Bureau are allowed to operate cryptocurrency exchange businesses.679 The operator must 

be a stock company or a “foreign cryptocurrency exchange business” that is a company, has a 

representative who is resident in Japan, and an office in Japan.680 A “foreign cryptocurrency 

exchange business” means a cryptocurrency exchange service provider that is registered with a 

foreign government in the foreign country under a law that provides an equivalent registration 

system to the system under the Japanese Payment Services Act.681 

The Act requires cryptocurrency exchange businesses to separately manage customer’s money or 

cryptocurrency apart from their own. The state of such management must be reviewed by certified 

public accountants or accounting firms.682 The exchange business must have a contract with a 

designated dispute resolution center with expertise in cryptocurrency exchanges.683 The exchange 

business must keep accounting records of its cryptocurrency transactions684 and submit a report on 

the business to the Financial Services Agency (FSA) annually.685 The FSA is authorized to inspect 

 

676 資金決済に関する法律 [Payment Services Act], Act No. 59 of 2009, as amended by Act No. 62 of 2016. 

677 In Japanese, the term 仮想通貨 (“virtual currency”) is used. 

678 Payment Services Act art. 2, para. 5. 

679 Id. arts. 63-2 & 63-3. See also Details of Screening for New Registration Application as Virtual Currency 

Exchange Service Provider, FSA, http://www.fsa.go.jp/en/news/2017/20170930-1/02.pdf, archived at

https://perma.cc/M36D-7BU3. 

680 Payment Services Act art. 63-5, para. 1. 

681 Id. art. 2, para. 9. 

682 Id. art. 63-11. 

683 Id. art. 63-12. 

684 Id. art. 63-13. 

685 Id. art. 63-14. Because the Cabinet delegates its authority over most of the matters under the Payment Services 

Act to the Financial Services Agency (FSA) (id. art. 104), the FSA is the regulatory agency of cryptocurrency 

transactions. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 112 

exchange businesses and issue orders to improve their practices.686 The FSA may rescind the 

registration of a cryptocurrency exchange business or suspend its business for up to six months in 

cases where 

 

 the exchange business loses one of the requirements for registration; 

 it turns out that the exchange business made the registration illegally; or 

 the exchange business violates the Payment Services Act or orders based on the Act.687 

On January 26, 2018, Coincheck, one of Japan’s biggest cryptocurrency exchange businesses, lost 

about $400 million in NEM (cryptocurrency) tokens. The local Finance Bureau ordered 

Coincheck to submit a report on the same day, examined it, and issued an order of business 

improvement on January 29, 2018.688 The following day the FSA requested all cryptocurrency 

exchange businesses to review their system-risk management plans and report the results to the 

FSA.689 On March 2, 2018, the FSA conducted an on-site inspection of Coincheck. On March 8, 

2018, the local Finance Bureaus issued business-improvement orders to seven exchange 

businesses,690 again including Coincheck.691 

A group of cryptocurrency exchange businesses publicized their decision to form a new selfregulating body on March 2, 2018, that all registered exchange businesses will join.692 The body 

aims to obtain authorization from the FSA under the Payment Services Act.693 

 

686 Id. arts. 63-15 & 63-16. 

687 Id. art. 63-17. 

688 コインチェック株式会社に対する行政処分について [Regarding Administrative Disposition against 

Coincheck Company], KANTO FINANCE BUREAU (Jan. 29, 2018), http://kantou.mof.go.jp/rizai/pagekthp 

0130000001_00004.html, archived at https://perma.cc/6Q6W-K5XX. 

689 仮想通貨交換業者に対するシステムリスク管理態勢の自己点検について [Regarding Request to 

Cryptocurrency Service Providers to Self-check System Risk Management], FSA (Jan. 30, 2018), 

http://www.fsa.go.jp/policy/virtual_currency/08.pdf, archived at https://perma.cc/LM5W-RC8K. 

690 Yuki Hagiwara et al., 金融庁:仮想通貨交換業者7社を行政処分、2社に業務停止命令 [FSA: 

Administrative Disposition for 7 Cryptocurrency Exchange Businesses, Suspension of Business Order for 2], 

BLOOMBERG (Mar. 8, 2018), https://www.bloomberg.co.jp/news/articles/2018-03-08/P58WVH6JIJUP01, archived 

at https://perma.cc/RGM9-DXCH. 

691 コインチェック株式会社に対する行政処分について [Regarding Administrative Disposition against 

Coincheck Company], KANTO FINANCE BUREAU (Mar. 8, 2018), http://kantou.mof.go.jp/rizai/pagekthp013 

0000001_00013.html, archived at https://perma.cc/QBG7-JE6A. 

692 仮想通貨の自主規制団体、「みなし業者も参加を」 [Cryptocurrency Self-regulated Body, “Calling for 

Registration-pending Business, Too”], NIKKEI (Mar. 5, 2018), https://www.nikkei.com/article/DGXMZO 

27693400V00C18A3000000/, archived at https://perma.cc/Z8EQ-S4X2. 

693 Payment Services Act art. 87. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 113 

In addition, under the Act on Prevention of Transfer of Criminal Proceeds, cryptocurrency 

exchange businesses are obligated to check the identities of customers who open accounts, keep 

transaction records, and notify authorities when a suspicious transaction is recognized.694

According to the National Tax Agency (NTA), the profit earned by sales of cryptocurrency is, in 

principle, considered miscellaneous income,695 rather than capital gains,696 under the Income Tax 

Act. The NTA compiled questions and answers regarding the tax treatment of cryptocurrency and 

posted it online on December 1, 2017.697 Miscellaneous income is added to the amount of other 

income, excluding specified capital gains,698 when a person’s taxable income is calculated 

and taxed.699 

Macau 

The Monetary Authority of Macau (AMCM) issued a statement on September 27, 2017, warning 

the financial industry and the public about the risks of virtual commodities and tokens.700 “Any 

trading of these commodities involves considerable risks, including but not limited to those 

relating to money laundering and terrorism financing, against which all participants should remain 

vigilant,” the statement said. According to the statement, the AMCM had issued a notice to banks 

and payment institutions in Macau to warn them not to participate in or provide, directly or 

indirectly, any relevant financial services, following a similar ban by Chinese authorities on 

the mainland on initial coin offerings (ICOs).701 

Previously, on June 17, 2014, the AMCM issued a statement warning about the risks of bitcoin 

transactions.702 According to that statement, bitcoin is a type of virtual commodity that is neither 

legal tender nor a financial instrument subject to the supervision of the AMCM. The AMCM 

 

694 犯罪による収益の移転防止に関する法律 [Act on Prevention of Transfer of Criminal Proceeds], Act No. 22 

of 2007, amended by Act No. 67 of 2017, art. 2 para. 2, art. 4 & arts. 7–8. 

695 所得税法 [Income Tax Act], Act No. 33 of 1965, amended by Act No. 74 of 2017, art. 35. 

696 Id. art. 33. 

697 仮想通貨に関する所得の計算方法等について( 情報) [Regarding Calculation Method of Income Relating to 

Cryptocurrency (Information)], Individual Taxation Information, No. 4, NTA (Dec. 1, 2017), 

http://www.nta.go.jp/law/joho-zeikaishaku/shotoku/shinkoku/171127/01.pdf, archived at https://perma.cc/M22N53MF. 

698 租税特別措置法 [Act on Special Measures concerning Taxation], Act No. 26 of 1957, amended by Act No. 4 of 

2017, arts. 8 through 8-5. 

699 Income Tax Act art. 89 

700 AMCM, Alert to Risks of Virtual Commodities and Tokens (Sept. 27, 2017), http://www.gcs.gov.mo/showNews. 

php?DataUcn=117182&PageLang=C (in Chinese), archived at https://perma.cc/28U9-WYPS, English translation at

http://www.gcs.gov.mo/showNews.php?DataUcn=117184&PageLang=E, archived at https://perma.cc/SQD2-

TW83. 

701 Id.

702 AMCM, Caution Against Engagement in Bitcoin Transactions (June 17, 2014), http://www.gcs.gov.mo/show 

News.php?DataUcn=79457&PageLang=C (in Chinese), archived at https://perma.cc/U5ET-8ZFW, English 

translation at http://www.gcs.gov.mo/showNews.php?DataUcn=79459&PageLang=E, archived at

https://perma.cc/EWM6-GKK5. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 114 

warned the general public that trading in virtual commodities such as bitcoin “involves 

considerable risks, including but not limited to those relating to money laundering and 

terrorist financing.”703

Malaysia 

On January 2, 2014, Bank Negara Malaysia (Malaysia’s central bank) issued a statement saying 

that “[t]he Bitcoin is not recognised as legal tender in Malaysia. The Central Bank does not regulate 

the operations of Bitcoin. The public is therefore advised to be cautious of the risks associated 

with the usage of such digital currency.”704 

On December 14, 2017, the Bank released, for the purposes of public consultation, a proposed 

policy “on the invocation of reporting obligations on digital currency exchange business as 

reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds 

of Unlawful Activities Act 2001 (AMLA).”705 According to the associated press release: 

[t]he proposed policy sets out the legal obligations, requirements and standards that digital 

currency exchangers, which will be defined under the First Schedule of the AMLA, must 

carry out as reporting institutions. This includes transparency obligations which are 

intended to provide relevant information for the public to better understand and evaluate 

risks associated with the use of digital currencies. Increased transparency will also serve to 

prevent the use of the digital currencies for criminal or unlawful activities. A digital 

currency exchanger must also declare its details to the Bank as a reporting institution. 

Failure to declare its details as reporting institutions or comply with the reporting 

obligations may subject the digital currency exchangers to the enforcement and noncompliance actions as provided under the AMLA as well as the potential termination or 

denial of use of financial services in Malaysia.706

The press release also affirms that digital currencies are not considered legal tender in Malaysia 

and digital currency businesses are not regulated by the Bank; the invocation of reporting 

obligations on digital currency exchange businesses does not connote any form of authorization or 

endorsement by the Bank.707 The statement goes on to again advise the public to “carefully 

evaluate the risks associated with dealings in digital currencies.”708

 

703 Id.

704 Press Release, Bank Negara Malaysia, Statement on Bitcoin (Jan. 2, 2014), http://www.bnm.gov.my/index.php? 

ch=en_announcement&pg=en_announcement&ac=49&lang=en, archived at https://perma.cc/6ZXJ-W2ZR. 

705 Press Release, Bank Negara Malaysia, Making Digital Currencies Transparent in Malaysia (Dec. 14, 2017), 

http://www.bnm.gov.my/index.php?ch=en_press&pg=en_press&ac=4575&lang=en, archived at 

https://perma.cc/W4P9-Z528; Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful 

Activities Act 2001 (Act 612), as at Dec. 1, 2015, http://www.agc.gov.my/agcportal/uploads/files/ACT 613 

diluluskan TPPUU Dis 2015.pdf, archived at https://perma.cc/N3ZD-FKQ3. 

706 Press Release, Making Digital Currencies Transparent in Malaysia, supra note 705. 

707 Id.

708 Id.
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 115 

The policy would require digital currency exchanges (being businesses that exchange digital 

currency for money, exchange money for digital currency, or exchange one digital currency for 

another709), to comply with regulations relating to “the identification and verification of customers 

and beneficial owners, on-going monitoring of customers’ transactions, sanction screening, 

suspicious transaction reporting and record keeping”; transparency obligations; and “requirements 

for the submission of data and statistics to the Bank” for the purpose of managing money 

laundering and terrorism financing risks.710 Public comments on the draft policy were due by 

January 14, 2018; no date for its finalization was located.

In addition, a news report in February 2018 states that the Bank is going to release a concept paper 

on cryptocurrencies within the month, and this will neither recognize cryptocurrencies as money 

nor ban them altogether. The governor of the Bank stated, “[b]asically, we will let the 

cryptocurrency promoters including bitcoin, ethereum and ripple to be more transparent, the 

methods to be more transparent and people behind the scene are to be more transparent too. By 

doing so, the public can decide on its own if they want to invest in cryptocurrencies.”711

A further news report says that the Bank will require exchanges to “publish prices and the 

methodology used to determine those prices in a bid to boost transparency.”712 The report also 

states that the Securities Commission of Malaysia (SC) “plans to issue a cryptocurrency exchange 

framework and has stepped up oversight of the sector, issuing a cease-and-desist letter to a crypto 

start-up on January 9th for failing to follow the country’s securities regulations.”713 Previously, in 

September 2017, the Commission issued a statement in which it cautioned investors with respect 

to “the emergence of digital token based fundraising activities / investment schemes in Malaysia 

and elsewhere, which may be referred to as ‘initial coin offerings’ [ICOs], ‘initial token offerings’, 

‘token pre-sale’, ‘token crowd-sale.’ ”714 Subsequently, in a speech in November 2017, the 

chairman of the Commission stated that 

we continue to stand by our statement that such schemes [ICOs], in its current form poses 

significant risks to investors. Therefore, SC strongly encourages investors to fully 

understand the features of an ICO scheme, and carefully weigh the risks before parting 

with their monies. We are also now part of the IOSCO [International Organization of 

 

709 Bank Negara Malaysia, Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) – Digital 

Currencies (Sector 6): Exposure Draft, at ¶ 4.1 (Dec. 2017), http://www.bnm.gov.my/index.php?ch=57& 

pg=538&ac=661&bb=file, archived at https://perma.cc/8ERA-F7QL. 

710 Id. at ¶ 2.1. 

711 Bank Negara Malaysia to Let Public Decide Fate of Cryptocurrencies, ECONOTIMES (Feb. 14, 2018), 

https://www.econotimes.com/Bank-Negara-Malaysia-to-let-public-decide-fate-of-cryptocurrencies-1149475, 

archived at https://perma.cc/W2MG-Q365. 

712 Malaysia’s Central Bank Issues Cryptocurrency Regulation, THE ECONOMIST INTELLIGENCE UNIT (Feb. 5, 2018), 

http://www.eiu.com/industry/article/1426386726/malaysias-central-bank-issues-cryptocurrency-regulation/2018-02-

05, archived at https://perma.cc/E986-K2GA. 

713 Id.

714 Press Release, Securities Commission Malaysia, Media Statement on Initial Coin Offerings (Sept. 7, 2017), 

https://www.sc.com.my/post_archive/media-statement-on-initial-coin-offerings/, archived at 

https://perma.cc/GHM3-K6EJ. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 116 

Securities Commissions] ICO Consultation Network where participating regulators are 

discussing the latest developments in this space. 

At the same time, we note the growing interest of Malaysian investors in trading 

cryptocurrencies and digital assets. To facilitate such activities in our market and put in 

place appropriate einvestor safeguards, SC is reviewing relevant regulations and guidelines 

to facilitate functional and effective use cases of digital assets in the capital market, 

including secondary market trading of established crypto currency and digital assets.715

With respect to tax treatment, in January 2018 Malaysia’s Inland Revenue Board (IRB) froze the 

Malaysian bank account of a UK-based cryptocurrency trading platform, apparently for the 

purpose of conducting an audit to determine whether the company has complied with the Income 

Tax Act 1967, which requires tax to be paid on the income of any person accruing in or derived 

from Malaysia.716 A request was made under section 81 of the Act as well as section 37 of AMLA 

for information on all of the company’s Malaysian customers. According to the IRB’s chief 

executive, “[a]ll traders should adhere to the Malaysian tax requirement by keeping proper records 

for audit purposes and disclose any transactions from the cryptocurrency trading when requested 

by IRB.”717 

Marshall Islands 

The Marshall Islands has enacted legislation authorizing the launching of its own national 

cryptocurrency to serve as legal tender for citizens and businesses on the island.718 The currency 

will be known as the sovereign, or SOV, and will serve as “legal tender of the Marshall Islands for 

all debts, public charges, taxes, and dues.”719 It will circulate as legal tender in addition to the US 

dollar.720 The SOV will be introduced in a forthcoming initial currency offering (ICO), after which 

residents of the Marshall Islands will be provided with the means to hold, save, and conduct 

transactions with the SOV, and merchants in the Marshall Islands will be given access to a 

computer application that will enable them to receive payments made with the SOV.721 The 

 

715 Speech, Tan Sri Ranjit Ajit Singh, Opening Address at Synergistic Collaborations by SC (SCxSC) Digital 

Finance Conference 2017 (Kuala Lumpur, Nov. 6, 2017), https://www.sc.com.my/post_archive/opening-remarksby-tan-sri-ranjit-ajit-singh-chairman-of-securities-commission-malaysia-at-synergistic-collaborations-by-sc-scxscdigital-finance-conference-2017-in-kuala-lumpur-on-6-november-2/, archived at https://perma.cc/4NEN-4FJY. 

716 IRB: Cryptocurrency Not Regulated but Traders Still Subject to Malaysian Income Tax Law, THE STAR ONLINE

(Jan. 19, 2018), https://www.thestar.com.my/tech/tech-news/2018/01/19/irb-cryptocurrency-not-regulated-buttraders-still-subject-to-malaysian-income-tax/, archived at https://perma.cc/YG9G-FQHL; Income Tax Act 1967 

(Act 53), § 3, http://www.agc.gov.my/agcportal/uploads/files/Publications/LOM/EN/Pindaan Act 53 - 23 11 

2017.pdf, archived at https://perma.cc/AP4T-FZHX. 

717 IRB: Cryptocurrency Not Regulated but Traders Still Subject to Malaysian Income Tax Law, supra note 716. 

718 Declaration and Issuance of the Sovereign Currency Act, Pub. L. 2018-53 (2018), https://rmiparliament.org/cms/ 

library/category/37-2018.html?download=410:p-l-2018-53-declaration-and-issuance-of-the-sovereign-currency-act,-

2018, archived at https://perma.cc/53A9-B8S7. 

719 Id. §§ 103(a), 104(1). 

720 Id. § 104(2). 

721 Id. §§ 104(4), 105(5). 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 117 

Minister of Finance will appoint a person or corporation to conduct the ICO.722 News reports 

indicate a financial technology company named Neema, which spearheaded the initiative, is likely 

to be awarded the contract to conduct the ICO.723

New Zealand 

In October 2017, the Financial Markets Authority (FMA) published information on 

cryptocurrencies, and the risks associated with them, as part of its guidance on investment 

options.724 In particular, it highlights the following three points about cryptocurrencies: 

 They’re high risk and highly volatile – the price can go up and down very quickly 

 They’re not regulated in New Zealand 

 Cryptocurrencies, crypto-exchanges and the people that use them are often the targets 

of online fraud and scams725

The FMA has also published commentary on initial coin offers (ICOs) and cryptocurrency services 

(including exchanges, wallets, and brokering).726 The information relates to the application of the 

existing regulatory framework for financial products and services. With regard to ICOs, the 

guidance states that 

The extent to which an ICO is regulated depends whether a ‘financial product’ is being 

offered to retail investors in New Zealand (ie a ‘regulated offer’ is being made). Whether 

a token offered via an ICO is a financial product, and if so, what type of product, depends 

on the token’s specific characteristics and economic substance.727

The FMA then explains how a token may be considered one of the four types of financial products 

set out in the Financial Markets Conduct Act 2013 (being debt securities, equity securities, 

managed investment products, and derivatives),728 and if so, what the obligations of the issuer are. 

It also notes that ICOs and tokens that are not financial products “will still be subject to general 

 

722 Id. § 109. 

723 Jonathan Keane, Inside the Marshall Islands’ Plans to Launch Its Own Legal Tender Cryptocurrency, THE NEXT 

WEB (Apr. 23, 2018), https://thenextweb.com/hardfork/2018/04/23/marshall-islands-cryptocurrency/, archived at

https://perma.cc/3N52-H4C9. 

724 Cryptocurrencies, FINANCIAL MARKETS AUTHORITY (FMA), https://fma.govt.nz/investors/ways-toinvest/cryptocurrencies/ (last visited Mar. 1, 2018), archived at https://perma.cc/L55V-K9Z6. 

725 Id.

726 Press Release, FMA, FMA Commentary on ICOs and Cryptocurrencies (Oct. 25, 2017), https://fma.govt.nz/ 

news-and-resources/media-releases/fma-commentary-on-icos-and-cryptocurrencies/, archived at

https://perma.cc/WD49-H7Z9. 

727 Initial Coin Offers, FMA, https://fma.govt.nz/compliance/cryptocurrencies/initial-coin-offers/ (last visited Mar. 

5, 2018), archived at https://perma.cc/JV7F-DCQK. 

728 Financial Markets Conduct Act 2013, http://www.legislation.govt.nz/act/public/2013/0069/latest/whole.html, 

archived at https://perma.cc/9FFL-PNYU. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 118 

consumer protection laws in New Zealand, for example prohibitions against misleading and 

deceptive conduct and fraud or other criminal conduct.”729

With regard to cryptocurrency services, the FMA guidance states that businesses based in New 

Zealand that provide a “financial service” related to cryptocurrencies must comply with the 

Financial Service Providers (Registration and Dispute Resolution) Act 2008.730 It then explains 

how different types of businesses might be considered to be providing a financial service and the 

obligations of such businesses. 

The Inland Revenue Department (IRD) has not yet issued any guidance or rulings regarding the 

tax treatment of cryptocurrencies. Its public rulings work program for the 2017–2018 financial 

year includes “GST and Income tax – Tax treatment of crypto-currencies” as being an item 

currently in progress, as of February 9, 2018, with “[p]reparatory work on issuing public guidance” 

being underway.731

According to a news report in January 2018, the IRD indicated that people should “treat money 

made buying and selling cryptocurrencies in the same, or similar, way they would money made 

buying and selling gold. That is, pay tax on the profit made by selling a currency, only if that 

currency was bought with the intention of resale.”732 It directed the author to an information sheet 

on gold, which explains that amounts derived from its disposal will be income if the gold was 

acquired for the dominant purpose of disposal.733

In addition, a spokesman for the Reserve Bank of New Zealand (its central bank) was quoted in a 

December 2017 news article as stating that cryptocurrencies would be included in the bank’s major 

review of its currency operating model and supporting infrastructure, which is currently underway. 

He explained that 

This project is focused on demand drivers, distribution models, and cash substitutes. It 

includes looking into crypto-currencies, blockchain technology and distributed ledgers. 

 

729 Initial Coin Offers, supra note 727. 

730 Cryptocurrency Services, FMA, https://fma.govt.nz/compliance/cryptocurrencies/cryptocurrency-services/ (last 

visited Mar. 5, 2018), archived at https://perma.cc/5SY4-GAUC; Financial Service Providers (Registration and 

Dispute Resolution) Act 2008, http://www.legislation.govt.nz/act/public/2008/0097/latest/whole.html, archived at 

https://perma.cc/7DBK-ULCJ. 

731 Inland Revenue Department (IRD), Public Rulings Work Programme 2017–18: Monthly Update – Position as at 

9 February 2018, http://www.ird.govt.nz/resources/0/e/0ed9d869-4a08-46cd-a143-da492b1b9348/2018-02-

09+Public+Rulings+Work+Programme.pdf, archived at https://perma.cc/7QP8-KCPR. 

732 Jenée Tibshraeny, The IRD Says People Should Consider Money Made Selling Cryptocurrencies – Bought with 

the Intention of Resale – As Taxable, Until it Releases Specific Guidance on the Matter, INTEREST.CO.NZ (Jan. 11, 

2018), https://www.interest.co.nz/personal-finance/91564/ird-says-people-should-consider-money-made-sellingcryptocurrencies-bought, archived at https://perma.cc/Q68X-WXE4. 

733 IRD, Question We’ve Been Asked: Are Proceeds from the Sale of Gold Bullion Income? (QB 17/18) (Sept. 20, 

2017), http://www.ird.govt.nz/resources/6/e/6ec89340-3f88-446f-90da-f50aaae363c9/QB17008.pdf, archived at 

https://perma.cc/3Q72-USAT. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 119 

The Reserve Bank doesn’t regulate bitcoin. Whatever legal status bitcoin has is under 

ordinary law relating to contracts, tax obligations etc.734

An analytical note issued by the Reserve Bank in November 2017, which does not serve as an 

official policy position, discusses the technology involved in cryptocurrencies, their attributes and 

mechanics, and “the implications of cryptocurrencies for consumers, financial systems, monetary 

policy, and regulatory policy.”735

Philippines 

Bangko Sentral ng Pilipinas (BSP, i.e., the Philippines Central Bank) has issued guidelines 

concerning virtual currencies (VCs).736 Specifically, these Guidelines provide that since VCs are 

not backed by a central bank or a particular commodity and are not guaranteed by any country, 

they are not legal tender.737 However, since they are used as a conduit to provide certain financial 

services, such as remittances and payment transactions, entities that provide such services using 

VCs must register with the BSP and adopt adequate measures to mitigate and manage risks 

associated with such currencies.738 In addition, the Guidelines provide for penalties applicable to 

VC entities that conduct operations without the appropriate authorization from the BSP.739 

Samoa 

On June 12, 2017, the Central Bank of Samoa issued a statement in which it warned the public to 

be “very cautious and diligent” in dealing with digital currency investments.740 As part of a broader 

warning against get-rich schemes, it advised people to ensure that they fully understand how a 

venture works and the risks and benefits of investing, and to contact the Bank if they are uncertain.

No other government statements or regulatory actions were located. 

 

 

734 Jonathan Underhill, IRD Sets its Sights on Bitcoin and Cryptocurrencies, NEW ZEALAND HERALD (Dec. 22, 

2017), http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11964722, archived at 

https://perma.cc/M8PB-J5R3. 

735 Aaron Kumar & Christie Smith, Crypto-currencies – An Introduction to Not-So-Funny Monies 2 (Reserve Bank 

of New Zealand Analytical Note Series, AN2017/07, Nov. 2017), https://www.rbnz.govt.nz/-/media/ReserveBank/ 

Files/Publications/Analytical%20notes/2017/an2017-07.pdf, archived at https://perma.cc/TYQ7-75JQ. 

736 Bangko Sentral ng Pilipinas, Guidelines for Virtual Currency (VC) Exchanges, Circular No. 944, (Feb. 6, 2017), 

http://www.bsp.gov.ph/downloads/regulations/attachments/2017/c944.pdf, archived at https://perma.cc/Z9ZRBYZV. 

737 Id.

738 Id. 

739 Id. 

740 Press Release, Central Bank of Samoa, Beware of These Get Rich Quick Schemes and Digital Currency (June 12, 

2017), https://cbs.gov.ws/index.php/media/latest-news/beware-of-getting-rick-at-these-new-article-page/, archived 

at https://perma.cc/5FC4-YCZU. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 120 

Singapore 

In the wake of an increase in the number of initial coin offerings (ICOs) in Singapore as a means 

of raising funds, on August 1, 2017, the Monetary Authority of Singapore (MAS) issued a 

statement clarifying that the offer or issue of digital tokens in Singapore will be regulated by the 

MAS, if the digital tokens fall within the definition of “securities” regulated under the security 

laws.741 MAS’s position is not to regulate virtual currencies. “However, MAS has observed that 

the function of digital tokens has evolved beyond just being a virtual currency,” the 

statement said.742

Following the August statement, the Deputy Prime Minister and Minister in Charge of MAS 

(DPM) responded to questions from the Parliament for its sitting on October 2, 2017, on the 

regulation of cryptocurrencies and ICOs.743 According to the DPM, although the MAS does not 

regulate virtual currencies per se, it regulates activities involving the use of virtual currencies that 

fall under MAS’s regulatory ambit, such as money laundering and terrorism financing. The MAS 

is working on a new regulatory framework for payments that will address the risks associated with 

virtual currencies, the DPM said.744 With respect to ICOs, the MAS has not issued specific 

legislation, but will continue to monitor developments and consider more targeted legislation when 

it becomes necessary, the DPM added.745

With respect to the new payment regulatory framework, the MAS issued a consultation paper 

proposing the Payment Services Bill in November 2017.746 The proposed Bill would expand the 

scope of regulated payment activities to include virtual currency services and other innovations. 

Under the new framework, entities carrying out virtual currency services including buying or 

selling virtual currency would be required to be licensed.747

 

 

741 Press Release, MAS Clarifies Regulatory Position on the Offer of Digital Tokens in Singapore (Aug. 1, 2017), 

http://www.mas.gov.sg/News-and-Publications/Media-Releases/2017/MAS-clarifies-regulatory-position-on-theoffer-of-digital-tokens-in-Singapore.aspx, archived at https://perma.cc/D8V5-3NST. 

742 Id.

743 MAS, Reply to Parliamentary Question on the Prevalence Use of Cryptocurrency in Singapore and Measures to 

Regulate Cryptocurrency and Initial Coin Offerings (for Parliament Sitting Oct. 2, 2017), http://www.mas.gov.sg/ 

News-and-Publications/Parliamentary-Replies/2017/Prevalence-use-of-cryptocurrency-in-Singapore.aspx, archived 

at https://perma.cc/WXF6-GDPD. 

744 Id.

745 Id.

746 Press Release, MAS Launches Second Consultation on New Regulatory Framework for Payments (Nov. 21, 

2017), http://www.mas.gov.sg/News-and-Publications/Media-Releases/2017/MAS-Launches-Second-Consultationon-New-Regulatory-Framework-for-Payments.aspx, archived at https://perma.cc/W5RF-D5GP. 

747 Id.
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 121 

South Korea748

The South Korean government implemented a rule that allows trades in cryptocurrencies only from 

real-name bank accounts (“real-name account system”) beginning January 30, 2018. 

Cryptocurrency dealers must have contracts with banks concerning cryptocurrency trades. The 

banks examine dealers’ management and cyber security systems before signing such contracts. In 

order to make a deposit into their e-wallet at a cryptocurrency dealer, a cryptocurrency trader must 

have an account at a bank where the cryptocurrency dealer also has an account. The bank checks 

the trader’s (customer’s) identity when it opens an account for the trader, and the trader reports 

his/her bank account to the dealer. The dealer also checks the identity of the trader and applies for 

registration of the trader’s account with the bank.749 Anonymous cryptocurrency traders may 

withdraw from their cryptocurrency accounts but cannot make a new deposit. Minors, as well as 

foreigners, regardless of their place of residence, are prohibited from trading 

in cryptocurrencies.750 

Under the Act on Reporting and Using Specified Financial Transaction Information, financial 

institutions are required to report financial transactions that are suspected, based on reasonable 

grounds, to be illegal or to involve money laundering.751 The Korea Financial Intelligence Unit 

(KFIU) issued guidelines on such reporting by banks to prevent money laundering via 

cryptocurrency transactions.752 The guidelines list the following examples of 

suspicious situations: 

 When a trader deposits or withdraws 10 million won (about US$9,400) or more a day or 20 

million won or more a week 

 When a trader makes financial (banking) transactions five times or more a day or seven times 

or more a week 

 When a trader is a corporation or organization 

 

748 At present there are no Law Library of Congress research staff members versed in Korean. This report has been 

prepared by the author’s reliance on practiced legal research methods and on the basis of relevant legal resources, 

chiefly in English, currently available in the Law Library and online. 

749 Financial Services Commission (FSC), 가상통화 투기근절을 위한 특별대책, 금융부문 대책 시행 [Special 

Measures for the Elimination of Virtual Currency Speculation, Enforcement of Financial Sector Measures (Dec. 28, 

2017)], at 3–4 (Jan. 23, 2018), http://www.korea.kr/common/download.do?tblKey=GMN&fileId=185832583, 

archived at https://perma.cc/Z9YH-7SDM. 

750 Id. at 2. 

751 Act on Reporting and Specified Financial Transaction Information, Act No. 6516, Sept. 27, 2001, amended by

Act No. 14839, July 26, 2017, art. 4, https://elaw.klri.re.kr/kor_service/lawView.do?lang=ENG&hseq=44449, 

archived at https://perma.cc/7LSF-32ZN. 

752 KFIU, 가상통화 관련 자금세탁방지 가이드라인 [Guidelines for Anti-Money Laundering with 

Cryptocurrency] (Jan. 23, 2018), http://m.fsc.go.kr/common/mFileDown.do?BBS=BBS0030&FILENO=123190, 

archived at https://perma.cc/3WSL-BS82. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 122 

 When a trader who does not have a record of deposit for a cryptocurrency exchange account 

withdraws most of the funds sent from the cryptocurrency exchange account in cash 

 When there are reasonable grounds for suspecting that a trader divides the amount of 

transaction money or the number of transactions to avoid reporting by financial institutions.753 

The Act and the guidelines also mandate that cryptocurrency dealers and banks verify traders’ 

identification and other information.754 

On February 20, 2018, the chief of South Korea’s Financial Supervisory Service, Choe Heung-sik, 

said that the government would support “normal” cryptocurrency trading and encouraged financial 

institutions to facilitate transactions with cryptocurrency exchanges.755

It was reported in March 2018 that the Ministry of Strategy and Finance is preparing a draft 

cryptocurrency taxation framework for release by the end of June 2018. The Ministry reportedly 

considers income from cryptocurrencies to be capital gains or miscellaneous income.756

Taiwan 

On December 19, 2017, Taiwan’s Financial Supervisory Commission (FSC) issued a statement 

warning the general public about the risks of investing in virtual commodities such as bitcoin.757 

In the statement, the FSC reiterated that in Taiwan, virtual currencies such as bitcoin are considered 

“highly speculative virtual commodities.” According to the statement, whether tokens involved 

in initial coin offerings (ICOs) are securities under the Securities and Exchange Act will be 

examined case by case, and illegal fundraising will be sanctioned in accordance with 

financial laws.758 

Previously, on December 30, 2013, Taiwan’s Central Bank and the FSC jointly issued a statement 

warning the public about the risks inherent in dealing with bitcoin.759 In the statement, the 

 

753 Id. at 5–6. 

754 Act on Reporting and Specified Financial Transaction Information art. 5-2. 

755 최흥식 금감원장 "가상통화 정상적 거래 지원 [Chief of Finance Supervisory Service Choe Heung-sik, 

“Support Normal Cryptocurrency Trading”], YONHAP NEWS (Feb. 20, 2018), http://www.yonhapnews.co.kr/ 

bulletin/2018/02/20/0200000000AKR20180220100700002.HTML, archived at https://perma.cc/5TUL-NSCY. 

756 Min-kwon Chang, 정부 6월 중 가상화폐 과세안 발표...7월 G20 회의에 규제 시계 맞출듯 [Government Will 

Announce Cryptocurrency Taxation Plan in June ... Making It in Time for G20 Meeting in July], FINANCIAL NEWS

(Mar. 25, 2018), http://www.fnnews.com/news/201803251117095693, archived at https://perma.cc/Y6XD-KCBZ. 

757 Press Release, Financial Supervisory Commission Warns General Public Once Again about Risks of Investing in 

Virtual Commodities Such as Bitcoin (Dec. 19, 2017), https://www.fsc.gov.tw/ch/home.jsp?id=96&parent 

path=0,2&mcustomize=news_view.jsp&dataserno=201712190002&aplistdn=ou=news,ou=multisite,ou=chinese,ou

=ap_root,o=fsc,c=tw&dtable=News (in Chinese), archived at https://perma.cc/R56Q-Z2KM. 

758 Id.

759 Press Release, Central Bank and FSC, Bitcoin Is Not Real Currency; Accepters Please Look to the Risks (Dec. 

30, 2013), http://www.cbc.gov.tw/ct.asp?xItem=43531&ctNode=302 (in Chinese), archived at

https://perma.cc/4N82-R6GS. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 123 

regulators said bitcoin is not a real currency, but a “highly speculative virtual commodity.” The 

general public was warned about the specific risks associated with accepting, trading, or holding 

bitcoin. The Central Bank and the FSC will take necessary regulatory actions at the appropriate 

time on the provision of bitcoin-related services by financial institutions, the statement said.760

Following the 2013 warning, the FSC issued a notice on January 6, 2014, that prohibited banks 

and financial institutions in Taiwan from accepting or exchanging bitcoin or providing bitcoinrelated services at bank ATMs.761 

Thailand762

The Bank of Thailand issued a circular on February 12, 2018, asking financial institutions to refrain 

from doing any business involving cryptocurrencies.763 Bangkok Bank halted transactions 

involving the trading of cryptocurrencies with a private Thai company, Thai Digital Asset 

Exchange (TDAX), on February 24, 2018.764 On February 27, 2018, Krungthai Bank, a stateowned financial institution, halted transactions related to cryptocurrencies with TDAX through the 

bank’s accounts.765 According to a news article, the ban will continue even after a new regulation 

(discussed below) is issued.766

Though the government expects new laws regarding cryptocurrencies will be enacted in the future, 

it decided to implement temporary measures to protect cryptocurrency investors.767 According to 

news articles, on March 13, 2018, the Cabinet approved the principles of the drafts of two Royal 

Decrees, one to regulate digital currencies, including cryptocurrencies, transactions, and initial 

coin offerings (ICOs), and the other to amend the Revenue Code to collect capital gains taxes on 

 

760 Id.

761 Press Release, FSC, Financial Institutions Must Not Provide Bitcoin-Related Services at ATMs (Jan. 6, 2014), 

https://www.fsc.gov.tw/ch/home.jsp?id=96&parentpath=0,2&mcustomize=news_view.jsp&dataserno=2014010600

03&toolsflag=Y&dtable=News (in Chinese), archived at https://perma.cc/P7FK-YGVD. 

762 At present there are no Law Library of Congress research staff members versed in Thai. This report has been 

prepared by the author’s reliance on practiced legal research methods and on the basis of relevant legal resources, 

chiefly in English, currently available in the Law Library and online. 

763 Arnab Shome, Thailand’s Central Bank Bans Banks from Dealing with Cryptocurrencies, FINANCE MAGNATES

(Feb. 12, 2018), https://www.financemagnates.com/cryptocurrency/news/thailands-central-bank-bans-banks-dealcryptocurrencies/, archived at https://perma.cc/XT6F-VKMA. The text of the circular is not available. 

764 Darana Chudasri & Somruedi Banchongduang, Bangkok Bank Halts TDAX Activity, BANGKOK POST (Feb. 24, 

2018), https://www.bangkokpost.com/business/news/1417355/bangkok-bank-halts-tdax-activity, archived at

https://perma.cc/FX7W-NNAQ. 

765 Wichit Chantanusornsiri & Darana Chudasri, KTB Shuts Down Crypto Trade Accounts, BANGKOK POST (Feb. 27, 

2018), https://www.bangkokpost.com/news/general/1418935/ktb-shuts-down-crypto-trade-accounts, archived at

https://perma.cc/5HQA-G6Q6. 

766 Frankie Crowhurst, Thailand to Introduce New Cryptocurrency Laws, CRYPTO DAILY (Mar. 18, 2018), 

https://cryptodaily.co.uk/2018/03/thailand-introduce-new-cryptocurrency-laws/, archived at https://perma.cc/BX79-

JJ24. 

767 Wichit Chaitrong, New Digital Currency Regulation on Horizon, NATION (Mar. 4, 2018), http://www.nation 

multimedia.com/detail/Economy/30340107, archived at https://perma.cc/QNN6-LJS7. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 124 

cryptocurrencies.768 The Decrees would require all digital asset transactions, including those of 

digital asset exchanges, brokers, and dealers, to be registered with the relevant authorities.769 

Vanuatu 

In October 2017 a number of news media outlets reported that Vanuatu would allow people to use 

cryptocurrency to pay the fee to obtain Vanuatu citizenship as part of its citizenship investment 

program.770 However, the Citizenship Office subsequently denied this, saying that there was no 

legal confirmation on the use of cryptocurrencies for this purpose and all payments were required 

to be in US dollars.771

No other government statements or regulatory actions were located. 

Vietnam772

The State Bank of Vietnam issued a decree on cryptocurrency on October 30, 2017. According to 

news reports, the Bank 

effectively determined that Bitcoin and other virtual currencies are not legal means of 

payment. That effectively also outlawed the issuance, supply and use of cryptocurrencies. 

Those found in violation of the decree and other relevant legal principles face fines of up 

to 200 million dong (around US$9,000).773

Some news media also reported that the government is trying to establish a legal framework for 

cryptocurrencies. It was reported that the Governor of the State Bank of Vietnam (SBV) Le Minh 

 

768 Wichit Chantanusornsiri, Cabinet OKs Digital Asset Draft Decrees, BANGKOK POST (Mar. 14, 2018), 

https://www.bangkokpost.com/business/news/1427642/cabinet-oks-digital-asset-draft-decrees, archived at

https://perma.cc/N8EN-S3YZ. 

769 Id. 

770 See, e.g., Echo Huang & Tripti Lahiri, A Small Pacific Island Will Now Let You Pay for Citizenship with Bitcoin, 

QUARTZ (Oct. 11, 2017), https://qz.com/1099475/a-small-pacific-island-will-now-let-you-buy-citizenship-withbitcoin/, archived at https://perma.cc/9G89-BXVR; Bitcoin Can Buy You Vanuatu Citizenship, RADIO NEW 

ZEALAND (Oct. 10, 2017), http://www.radionz.co.nz/international/pacific-news/341258/bitcoin-can-buy-youvanuatu-citizenship, archived at https://perma.cc/MLM2-KR47. 

771 Vanuatu Govt Steps Away from Bitcoin Payments, RADIO NEW ZEALAND (Oct. 19, 2017), 

https://www.radionz.co.nz/international/pacific-news/341894/vanuatu-govt-steps-away-from-bitcoin-payments, 

archived at https://perma.cc/9K9L-RG3M; Ben Moshinsky, Vanuatu Denies it Will Accept Bitcoin for its $200,000 

Citizenship Program, BUSINESS INSIDER (Oct. 18, 2017), http://www.businessinsider.com/vanuatu-accepts-bitcoinfor-citizenship-payment-2017-10, archived at https://perma.cc/5MPC-RHWW. 

772 At present there are no Law Library of Congress research staff members versed in Vietnamese. This report has 

been prepared by the author’s reliance on practiced legal research methods and on the basis of relevant legal 

resources, chiefly in English, currently available in the Law Library and online. 

773 Nate Fischler, Vietnam Has a Cryptocurrency Dilemma, ASIA TIMES (Feb. 1, 2018), http://www.atimes.com/ 

article/vietnam-cryptocurrency-dilemma/, archived at https://perma.cc/5VF9-MSUE. 
Regulation of Cryptocurrency Around the World 

The Law Library of Congress 125 

Hung said that “ ‘from the perspective of treating it as an investment asset’, the SBV would cooperate with the justice ministry to ‘study the legal framework for managing’ Bitcoin.”774 

 

774 Dani Gas, Cryptocurrency Legal Framework in Vietnam: Will Be Ready by End of January, INFOCOIN (Jan. 8, 

2018), http://infocoin.net/en/2018/01/08/cryptocurrency-legal-framework-in-vietnam-will-be-ready-by-end-ofjanuary/, archived at https://perma.cc/UX6R-U3E3.