The legal side of cryptos in Europe Cryptocurrency mining is the process of adding new transactions to the blockchain that results in adding the new units of digital currency into existence and circulation. Due to the high innovativeness of this process, the status of cryptocurrencies as well as their mining in jurisdictions may vary worldwide.
The attempts to regulate this growing industry have been undertaken by many governments, yet the certainty in many cases is still lacking. In countries like China, Taiwan, and Iceland, for instance, some aspects of the cryptocurrency use are restricted.
In China, Bitcoin is legal for individual use only, which means that companies or financial institutions cannot adopt it. In Iceland mining crypto is totally legal, however, its buying, selling and or exchanging for the state currency is not.
In some countries crypto is banned, e. In Venezuela, bitcoin mining is considered a crime. In the majority of the countries, however, cryptocurrencies are still unregulated and are therefore considered legal.
However, the tax still applies to the payments for goods and services in Bitcoin in the EU. This makes Bitcoin convenient for individuals and companies, whereas the banks are not recommended to deal with cryptocurrencies. The world banks are currently more interested in the blockchain technology rather than Bitcoin and implement it.
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One of the major goals of the European Commission at the moment is designed a distributed ledger on which the financial data from collected from companies can be stored into a national database.
In the countries where crypto mining is unregulated or tolerated there are difficulties with the taxation of such activity. In most cases, it is subject to income tax charged from a person who received bitcoin as a mining reward or upon exchange. No need to say that the monthly electricity bills from individual miners or farms are also taxed on top of the high energy charges. It makes mining in the Alpine region far more profitable than in China or in the north of Europe. The use of the green energy, e.
With the concern of the EU Parliament about the environmental issues and turning to the eco-friendly energy sources, mining cryptocurrency can establish itself as a highly-progressive and technologically-innovative industry. Know more than others on any Blockchain Party! Join more than others to receive the breaking news and weekly summaries! No ICO spam, we promise.