In the case of Canada, it maintains a generally Bitcoin-friendly stance while also ensuring the cryptocurrency is not used for money laundering.
Bitcoin is viewed as a commodity by the Canada Revenue Agency (CRA).9 This indicates that Bitcoin transactions are viewed as barter transactions, and the income generated is considered as business income. The taxation also depends on whether the individual has a buying-selling business or is only concerned with investing.
In the case of the United Kingdom (U.K.), Investopedia reports that it has a pro-Bitcoin stance and wants the regulatory environment to be supportive of the digital currency. As a result, bitcoin in the U.K is under certain tax regulations.
This is just as the National Revenue Agency (NRA) of Bulgaria has also brought bitcoin under its existing tax laws. For Germany, it’s open to Bitcoin because it considers it legal but taxed differently depending upon whether the authorities are dealing with exchanges, miners, enterprises, or users.
The aforementioned countries and many others are boosting their national reserves in cryptocurrencies through taxation from exchanges, miners and investors. Cryptocurrency has indeed come to stay!
DAYO ADESULU is the Editor-in-Chief at The Cheer News (www.thecheernews.com)