In the European Union, there is still no common regulatory framework for cryptocurrencies. However, a number of legal approaches have been offered by various EU authorities to reach a consensus on important cryptocurrency distribution issues.

Andorra

Cryptocurrencies: Not legal tender.

The government’s stance on cryptocurrency and blockchain-related technology is proactive and positive. As mentioned in the media, the Ministry of Economy and the President favour digital technology and seek to attract business entrepreneurs.The Digital Assets Act, a regulatory framework for digital currencies and blockchain technology, was recently enacted in Andorra.

The legislation is divided into two sections. The first is concerned with the creation of digital money, sometimes known as “programmable digital sovereign money.”The act’s second part refers to digital assets as financial instruments and aims to create a regulatory environment for blockchain and distributed ledger technologies.The tax system is one of the primary reasons why someone working in the bitcoin field decides to live in Andorra. Andorra’s maximum company tax rate of 10% makes it an exceptionally appealing location.

Because there is no wealth tax in Andorra, bitcoin investors already have an advantageous tax strategy. Capital gains are capped at 10% under personal income tax, but the Andorran government has already received feedback on the idea of changing the law to provide an exemption for cryptocurrency.

There are Bitcoin mining firms in the country. There are industrial properties for rent, and server and IT equipment can be installed in suitable conditions. Electricity costs less than in neighbouring nations like Spain and France.

Austria

Cryptocurrencies: Not legal tender.

The Financial Market Authority (FMA) has advised investors that cryptocurrencies are dangerous, adding that the FMA does not supervise or control virtual currencies, such as bitcoin, or cryptocurrency trading platforms. The FMA’s regulations are modelled after Austria’s implementation. The Fifth Money Laundering Directive defines crypto-assets as “financial instruments.” The FMA regulations specify registration procedures for instruments.” issuance and sale of virtual currencies, as well as their transfer, trading, and exchange platforms for them, as well as custodian wallet providers.

Cryptocurrencies are classified as “other (intangible) commodities” by the Austrian Ministry of Finance. Austria will apply a 27.5 percent capital gains tax on digital currencies as part of a comprehensive tax reform, bringing the treatment of cryptos in line with that of stocks and bonds in order to “streamline” conditions between asset classes. Speculative income in Austria is currently tax-free if it does not exceed 440 euros per calendar year.

Mining bitcoin and other cryptocurrencies is currently unregulated.Bitcoin mining is an important part of the Austrian economy.In recent years, the country has seen a significant increase in the number of Bitcoin miners.

Albania

Cryptocurrencies: Not legal tender.

In Albania, it is legal to own and trade cryptocurrencies like bitcoin.

Albania governs cryptocurrencies through Law No. 66/2020, “On Financial Markets based on Distributed Registry Technology,” which in particular controls the registration of organisations working in the field of distribution and trading of virtual currencies and digital tokens.According to a reports, Albania will begin taxing crypto  profits at a rate of 15% in 2023.

Belarus

Cryptocurrencies: Not legal tender

Cryptocurrencies cannot be used as money (either electronic money or foreign currency) or securities in Belarus, and any activity involving cryptocurrencies is expressly prohibited by laws governing currency, licenses, and banking and securities activities. As a result, digital currency is viewed as a special asset in Belarus in a dematerialized form.

The Belarusian government passed Decree No. 8 “On the Development of Digital Economy” in December 2017, making it the nation’s first official law addressing cryptocurrencies and blockchain technology. On March 28, 2018, the Decree went into effect.

Additional directions relegation token-related activities were accepted by the Hi-Tech Park Supervisory Council in November 2018.

In March 2018, the Belarusian Ministry of Finance approved cryptography accounting rules.

Belarusian law is quite tolerant when it comes to taxes; up until January 1, 2023, operations connected to token mining, creation, purchase, and sale will be tax-free.

Belgium

Cryptocurrencies: Not legal tender.

Bitcoin and other cryptocurrencies can be held and traded legally in Belgium.Digital currencies are not considered legal cash, and the National Bank of Belgium and the Financial Services and Markets Authority have cautioned users of them against a number of risks.

Crypto Trading service companies in Belgium must register by September 2022. The new regulation also applies to custody wallet services provided within Belgium. All of these service providers must this year register with the financial regulatory body in Belgium, the Financial Service Marketing Authority (FSMA). Providers who operate prior to the specified date of May 1 must notify the FSMA of their activities before July 1, 2022, and apply for registration before September 1, 2022. Such cryptocurrency exchange service providers must notify the FSMA, who will grant them provisional authorization to continue operations until their registration requests are reviewed by the authority.

Bulgaria

Cryptocurrencies: Not legal tender.

The Bulgarian government does not view Bitcoin and crypto as legal cash and does not regulate it.Currently, Bulgarian law does not directly control or restrict cryptocurrency mining.It is an authorised activity covered by general law (including taxation obligations among other things).

Cryptocurrencies are taxed in Bulgaria in the same way as income from the sale of any other financial asset. From the annual basis of assessment, a 10% tax rate is applied. The tax basis for corporate income tax is used in relation to cryptocurrency use, particularly trading, as a professional activity. Therefore, the tax rate is 15%.the 17th of February 2022 The Bulgarian Stock Exchange permits trading in cryptocurrency products through the use of 8 ETNs based on Bitcoin and Ether.

1.BTCetc – Bitcoin Exchange Traded Crypto,2. VanEck Vectors Bitcoin ETN,3. ETHetc – ETC Group Physical Ethereum ETP, 4.VanEck Vectors Ethereum ETN,5. 21Shares Bitcoin ETP, 6.21Shares Ethereum ETP, 7.WisdomTree Bitcoin, 8.WisdomTree Ethereum.

Bosnia and Herzegovina

Cryptocurrencies: Not legal tender

Bitcoin and other cryptocurrencies are not subject to any restrictions in Bosnia and Herzegovina.

Bosnia and Herzegovina only accepts the convertible mark, the country’s official currency, as payment, and the Central Bank of Bosnia and Herzegovina has stated that exchanging bitcoins or other cryptocurrencies for convertible marks is not allowed. 

The Bank further stated that no plans existed to limit or prevent the purchase, sale, or usage of virtual currency.

A bill to create a legal structure for cryptocurrencies was reportedly being developed in May 2021, according to reports Nothing has been passed thus far.

Croatia

Cryptocurrencies: Not legal tender.

In Croatia, it is legal to own and trade cryptocurrencies. Cryptocurrencies are not recognised as foreign currencies or as a legitimate form of payment, according to the National Bank of Croatia (CNB). The Financial Stability Council of Croatia informed the public that virtual currency transactions are not under the jurisdiction of Croatian regulators.

Croatia treats cryptocurrency sales revenue as a type of financial transaction.This indicates that it is subject to taxation in the same manner as other financial asset receipts. Since sold cryptocurrencies are regarded as a specific kind of receipt, income tax is due.

Cyprus

Cryptocurrencies: Not legal tender.

According to the Central Bank of Cyprus, bitcoin and other cryptocurrencies are “not illegal, but neither are they subject to control or regulation.”Cyprus businesses and citizens benefit from a relatively relaxed regulatory cryptocurrency environment, as there is no specific legal or regulatory framework in place.

According to a government official, Cyprus has prepared its own legislation to regulate crypto assets and is likely to adopt it before Europe finalises a common regulatory framework.The authorities in Nicosia welcome the “prudent” use of cryptocurrencies. The bill clarifies digital asset industry policies and amends existing related laws such as property law and tax codes.

Czech Republic

Cryptocurrencies: Not legal tender.

Cryptocurrencies are mostly uncontrolled in the Czech Republic. Since they are categorised as commodities, it is acceptable to trade and own cryptocurrencies in the Czech Republic. The CNB permits Czech banks to offer cryptocurrencyrelated services as long as AML/KYC guidelines are followed, despite the market being mostly uncontrolled.

The existing regulatory framework in the Czech Republic allows for the operation of cryptocurrency exchanges with a normal trading licence. Unless a crypto exchange offers payment services or trades derivatives of crypto assets, it is not subject to any specific legal rules.earnings from the sale of cryptocurrencies.The tax rate in this scenario is 15%, which is comparable to transactions involving foreign currencies.

Mining operations are regarded as activities carried out for commercial gain and as such are subject to taxation. In this instance, the tax rate is 19 percent.

Denmark

Cryptocurrencies: Not legal tender.

Denmark permits the purchase, sale, and storage of cryptocurrencies, much like the rest of the globe. According to the Danish Financial Supervisory Authority (DFSA), it is unusual for them to oversee cryptocurrencies that are used as a means of payment.

The principal regulatory body in Denmark is the Danish Financial Supervisory Authority.However, EU legislation has an impact on cryptocurrency regulation. A change to the Danish Act on Measures to Prevent Money Laundering and Financing of Terrorism in January 2020 A virtual currency is described by as “a digital representation of value that is accepted by natural or legal persons as a means of exchange and which can be transferred, stored, and traded electronically, but is not issued or guaranteed by a central bank or a public authority, is not necessarily attached to a legally established currency, and does not possess a legal status of currency or money.”

In Denmark, there are no laws governing cryptocurrency mining.

The creation of the “e-krone,” a digital currency, is being studied by the Nationalbanken, the central bank of Denmark.

Estonia

Cryptocurrencies: Not legal tender

It is lawful to buy, trade, and hold cryptocurrencies in Estonia because they are not governed or controlled by the state.

The Estonian Ministry of Finance suggested rules for suppliers of virtual currency services in January 2021. According to the new legislation, “virtual currency service” businesses must have their management, registered office, and location of operation in Estonia. These businesses include trading platforms and wallets.

A new set of proposed regulations aims to enhance oversight of virtual asset service providers and solve some of the regulatory concerns. Businesses will be governed by the Financial Supervision Authority, which will impose minimum capital requirements, IT standards, audits, and reporting requirements. All licence holders must submit a fresh application.

In Estonia, cryptocurrency-related income is taxable.

Finland

Cryptocurrencies: Not legal tender.

The usage of bitcoin and other cryptocurrencies is permitted in Finland.

The Financial Supervisory Authority (FSA) of Finland started regulating virtual currency exchange services, wallets, and creators of virtual currencies in May 2019. Registration is necessary to ensure compliance with legal requirements relating to provider dependability, client money protection, asset segregation, marketing, and compliance with AML/CFT legislation.

Consumers have been warned by the FSA about the speculative, dangerous, and volatile nature of the investments.

A bitcoin transaction is regarded as a private contract that is equal to a contract for difference for tax reasons, according to guidelines for the taxation of virtual currencies published by the Finnish Tax Administration. When bitcoin is used to make purchases or converted into fiat money, the value is “realised,” and any price growth is subject to taxation with losses not being deducted.

France

Cryptocurrencies: Not legal tender.

It is legal to own and trade cryptocurrencies in France.The growth of cryptocurrencies is largely encouraged by French government policy.

In June 2021, the regulations were finished and put into effect. Companies must now register and adhere to stricter KYC regulations. There are new AML/CFT regulations that cover digital assets. To better connect the French AML framework with Financial Action Task Force principles, they widened AML/CFT and KYC criteria. They also implemented new cryptocurrency exchange laws, outlawed anonymous accounts, and addressed new dangers associated with digital assets.

The taxation of cryptocurrencies has recently been a topic of discussion among French lawmakers. Cryptocurrencies are taxed similarly to movable goods. Retail merchants pay a flat tax of 30%, whereas professional traders and miners pay a tax of 45%.

Germany

Cryptocurrencies: Not legal tender.

The German government was one of the first to grant financial institutions legal security and offer them permission to deposit cryptoassets. Individuals and organisations are permitted to buy or sell cryptoassets as long as they do so through authorised exchanges and custodians, according to the regulations. Licenses are required by the German Federal Financial Supervisory Authority for firms (BaFin).

According to BaFin, the German Banking Act recognises cryptocurrencies as “units of account.” The AMLD rules have Germany’s approval. It has produced licencing requirements for offering custodial services. Although they can be transferred, stored, and sent electronically, crypto-assets are recognised as a means of payment, investment, and exchange since they are based on a consensus.

Bitcoin and other virtual currencies are regarded as private money for tax reasons by the Bundeszentralamt für Steuern (BZSt), the German Federal Central Tax Office. The German Tax Acts do not treat bitcoin as property, legal cash, or a foreign currency.

Greece

Cryptocurrencies: Not legal tender.

In Greece, it is legal to possess and exchange cryptocurrencies.

The Hellenic Capital Market Commission views cryptocurrencies as portfolio assets rather than money. Companies that provide digital wallets, custodial services, and ATM-based trades of cryptocurrencies and fiat money are required to register. The registration is seen as an essential first step in the country’s regulatory endeavours. Greece, as an EU member state, has agreed to AMLD and any EU actions.

Although taxation for mining is treated as revenue from commercial operations and the earnings that result after deducting operating costs are taxed in accordance with general regulations and the corresponding tax rates, there is no specific tax system for blockchain or cryptocurrencies. Cryptocurrency owners are subject to capital gains tax at a rate of 15 percent plus a progressive increase.

Hungary

Cryptocurrencies: Not legal tender.

In Hungary, buying and selling bitcoin is lawful because there are no laws that expressly prohibit or limit its use. The national bank of Hungary, the Magyar Nemzeti Bank (MNB), has issued a public warning to those who use or invest in cryptocurrencies.

Cryptocurrency activities are not specifically regulated by legislation in Hungary, where they are not accepted as legal tender and are subject to insufficient regulations. Hungary, however, accepted AMLD and signed up for the European Blockchain Partnership.

According to Finance Minister Mihály Varga, the government of Hungary would reduce the capital gains tax on bitcoin earnings in half, from 30.5 percent to 15 percent, as part of the COVID-19 relief programme. Cryptocurrency exchanges are not taxable transactions. Only when changing cryptocurrency to fiat currency are the taxes due.

Iceland

Cryptocurrencies: Not legal tender.

Although they are not regarded as legal tender in Iceland, trading in bitcoin and other cryptocurrencies is not prohibited.

According to RV, the Icelandic Central Bank has cautioned against using cryptocurrency due to a lack of regulatory protection. The country’s cryptocurrency industry is largely unregulated by the bank, and it has little influence over how they are exchanged. This is true despite the fact that, according to Fréttablai, Iceland now accounts for an estimated 8% of the world’s supply of Bitcoin, the most popular cryptocurrency. The Financial Supervisory Authority of the bank has issued a reminder that as cryptocurrencies are not considered legal money,

The regulation of cryptocurrencies and cryptoassets is not very strict in Iceland. However, the Money Laundering Act includes a registration requirement for parties using cryptocurrencies or cryptoassets and complies with the 4th Anti-Money Laundering Directive No. 2015/849 of the European Union.

Ireland

Cryptocurrencies: Not legal tender

It is legal to purchase, sell, exchange, and hold cryptocurrencies in Ireland. The risks associated with cryptocurrencies have been raised in pronouncements from the Central Bank of Ireland.

Cryptocurrencies are not recognised in Ireland as money or as being comparable to fiat money, and neither the Central Bank nor the Irish government are backing them. Ireland has chosen to “wait and watch” when it comes to the implementation of local crypto law. Ireland signed up for the European Blockchain Partnership and committed to AMLD.

There are no explicit tax laws that apply to cryptocurrencies or crypto-assets. A handbook on the tax treatment of cryptocurrency transactions was released by the Irish Office of the Revenue Commissioners. It was stated that normal tax laws apply and that mining bitcoins frequently falls under VAT exemption. Transactional gains and losses made with cryptocurrencies are often taxed like conventional income.

Italy

Cryptocurrencies: Not legal tender.

In Italy, purchasing and selling cryptocurrencies such as bitcoin is legal. On April 28, 2021, the Bank of Italy and the Italian Securities and Exchange Commission (“Consob”) jointly issued a statement alerting the public and novice savers to the risks related to “crypto-activities.” Italy joined the European Blockchain Partnership (EBP) in April 2018 together with 22 other countries.

In February 2022, Italy published new AML regulations for cryptocurrency businesses, laying out the registration and reporting requirements for VASPs that adhere to the EU AMLD and the Financial Action Task Force (FATF) standards for crypto businesses. In accordance with the new rules, service providers of virtual assets must register on a specific roster for bitcoin enterprises. Registration is required if a business offers any services involving digital assets in the country.

Latvia

Cryptocurrencies: Not legal tender.

The Financial and Capital Market Commission of Latvia has issued a warning to investors, stating that no legal framework for the regulation of cryptocurrencies exists in that country. Furthermore, there are no particular limitations or prerequisites for acquiring particular licences. Furthermore, no country has adopted bitcoin or any other cryptocurrency as its official currency.

Both the issuing of financial instruments or money, as well as the commercial exchange of bitcoins or other cryptocurrencies, are not considered to be payment services. Those conducting crypto operations are not obliged to have a licence or register with the Commission.

Over the past few years, Latvia has started making improvements to its anti-money laundering laws. The Financial and Capital Market Commission’s mandate was expanded in 2019 to include AML/CTF and to enforce beneficial ownership requirements on local limited corporations, foundations, unions, and other businesses. The Latvian Finance Ministry taxes capital gains from cryptocurrency at a rate of 20%. Latvia has formally joined the European Blockchain Partnership by signing a statement.

Lithuania

Cryptocurrencies: Not legal tender.

The Bank of Lithuania published a list of 64 cryptocurrencies in 2017. Bitcoin and other cryptocurrencies, often known as virtual currencies, are ungoverned and not backed by the government’s central bank.

Businesses dealing in cryptocurrencies are required to register with the Center of Registers in Lithuania.The Financial Crime Investigation Service (FCIS) must be notified of substantial transfers, and registrants are required to adopt extensive KYC and AML practises.companies that are those in charge of registered but unregulated virtual currency exchanges providers.

They are not permitted to provide any kind of financial service, not even assistance with investments.According to a study by Moneyval, the Council of Europe’s committee of experts on the evaluation of AML/CFT procedures, published in June 202066, Lithuania had made progress toward filling any shortcomings in its legislation and supervision of cryptocurrencies. Additionally, it stated that it had gone above and above the call of duty.AMLD specifications In July 2021, the Bank of Lithuania 67 warned an exchange operator about unauthorised trading.

The country forbids the use of publicly available information by investment services.The Lithuanian State Tax Inspectorate classifies cryptocurrencies as “property” and levies a 15 percent tax on gains.The only time mining profits are taken into consideration is after the cryptocurrency has been mined and sold.

Liechtenstein

Cryptocurrencies: Not legal tender.

Cryptocurrency ownership and use for financial transactions are legal in Liechtenstein. The Liechtenstein Blockchain Act (TVTG) actually provides a complete framework on the nature of digital assets and related services.

The token economy is now fully regulated in Liechtenstein, which is the first nation to do so. One the one hand, the law controls civil law matters in regard to client and asset protection. On the other hand, sufficient oversight of the different service providers in the token economy will be set up. Additionally, there are policies in place to prevent money laundering and the financing of terrorism, which subject service providers to them. The law also clarifies how digital securities should be treated.

The audit and consulting firm PwC has declared Liechtenstein’s tax laws regarding cryptocurrencies and other digital assets to be the most thorough in the world for the second year in a row. The business assesses nations based on 19 criteria to determine how comprehensive their regulations regarding digital assets and transactions are. This covers taxes on mining, staking, NFT, and other related things.

Luxembourg

Cryptocurrencies: Not legal tender.

Bitcoin and other cryptocurrencies can be held and traded legally in Luxembourg. The Financial Sector Monitoring Commission of Luxembourg issued a statement in 2018 cautioning people against investing in cryptocurrencies. Cryptocurrencies aren’t regarded as legitimate money for tax purposes; instead, they’re viewed as intangible assets.

The Financial Sector Supervisory Commission (CSSF), in a consumer alert on virtual currencies, stated on March 14, 2018, “Financial sector rules should assess and analyse, in particular, provisions under the 10 July statute.” Additionally, the CSSF mandated that funders set up anti-money laundering and counterterrorism financing policies. However, definitions for virtual asset service providers are included in the law of March 25, 2020 (AML/CTF) (VASPs).

A law that legally recognised tokenized securities as having the same legal standing as conventional securities and permitted the transfer of securities using distributed ledger technology was put into effect in Luxembourg on March 1.

if you have held for a period of time beyond six months. Stocks in Luxembourg appear to be subject to the same rule.

Malta

Cryptocurrencies: Not legal tender.

It is legal to buy, sell, and hold cryptocurrencies in Malta. Malta has been at the forefront of accepting bitcoin transactions, earning the moniker “The Blockchain Island” as a result. Malta imposed tax regulations on transactions involving digital assets, including cryptocurrencies, in 2018 in addition to setting up an intricate regulatory framework for them.

The government of Malta acknowledges cryptocurrencies as “a means of exchange, a unit of account, or a store of value” despite the fact that they are not considered legal cash in the country. The Maltese government was the first to establish a trio of digital asset-related statutes (MDIA, ITAS, and VFA), coupled with blockchain law, to supplement existing AML/CTF regulation.

There is no explicit tax law governing cryptocurrencies in Malta, nor is VAT currently applied to exchanges of fiat cash for cryptocurrencies.

Moldova

Cryptocurrencies: Not legal tender.

One of the nations where digital assets and cryptocurrencies are not legally regulated is Moldova. Additionally, the phrase “digital asset” is rarely used in conversations, while “virtual assets” is preferred in business contexts.

The National Bank of Moldova (hence referred to as the “NBM”) has frequently posted comments on its official website cautioning about the hazards associated with the usage of virtual assets, particularly cryptocurrencies.

According to the NBM, “virtual currencies” are not considered a type of electronic money within the terms of Law on Payment Services and Electronic Money No. 114, issued May 18, 2012, and the activity of issuing and closing contracts using them is not under the control of recognised governmental agencies.

On January 31, 2018, a law was passed in Moldova to make mining operations legal.

Monaco

Cryptocurrencies: Not legal tender.

12/17/21 The CCAF alerts the public that cryptoassets, often known as “virtual currencies” or “cryptocurrencies,” such as Bitcoin, Ethereum, Ripple, Monoeci, etc., do not meet the requirements of a currency and are not governed by any specific laws. These digital assets are neither a form of payment nor a medium of exchange whose value is supported by a central bank.

Monaco does not collect personal income tax or capital gains taxes. 

Montenegro

Cryptocurrencies: Not legal tender

In November 2014, the Central Bank of Montenegro reportedly issued a warning, cautioning individuals that they could purchase cryptocurrencies but at their own risk.Although their use is not forbidden, cryptocurrencies are not accepted as official forms of payment in Montenegro.

The Central Bank of Montenegro and other key state institutions usually align their official positions on cryptocurrencies with the current European policy and legislation because of their strong desire to join the European Union.

In Montenegro, cryptocurrency is not subject to special tax legislation procedures.Montenegro does not have any laws governing the mining of bitcoins or other cryptocurrencies.

Netherlands

Cryptocurrencies: Not legal tender.

In the Netherlands, it is legal to purchase, sell, and hold cryptocurrencies.The usage of cryptocurrencies is not prohibited by any regulatory legislation.

With the Dutch Central National Bank De Nederlandsche N.V., cryptocurrency businesses must register (DNB). According to Dutch law, VASPs are required to make identifying information about themselves and their clients public. The DNB also regulates cryptocurrency service providers.

A cryptocurrency is defined by the DNB as “a digital representation of value that is not issued or guaranteed by a central bank or a public authority, is not always linked to a legally recognised currency, does not possess a legal status of currency or money but is accepted by parties with the authority to make financial decisions.”Transferable, storable, and used as a medium of trade natural or legal beings traded electronically Dutch AML regulations were modified by the Dutch Implementation Act, and 5MLD became effective in May 2020.

The Netherlands instead levies a presumed interest on the value of all assets minus all liabilities instead of taxing capital gains. The deemed interest is deductible from a 31 percent fixed fee (in 2021, 30 percent in 2020).

North Macedonia

Cryptocurrencies: Not legal tender

To date, only North Macedonia in Europe has officially banned cryptocurrency.

In 2014, the National Bank of Macedonia’s governor, Dimitar Bogov, said: “Denars are the official currency in Macedonia for both cash and non-cash payments.  Banks handle processes related to international payments.  Therefore, it is forbidden to trade or use bitcoin.”

On September 28, 2016, the National Bank of Macedonia released a statement warning against cryptocurrencies and reminding citizens that Macedonians are not allowed to open foreign investment accounts, including those for cryptocurrency. Cryptocurrencies are still forbidden in Macedonia  Because foreign payment operations are carried out by Macedonian banks, the Governor of the National Bank of Macedonia said that Bitcoin trade and use are prohibited.

Norway

Cryptocurrencies: Not legal tender.

It is acceptable to use cryptocurrencies. They are not considered to be any type of currency, but rather an asset. The geographic diversity of Norway has drawn blockchain startups.Both the Financial Supervisory Authority, “Finanstilsynet,” and the Norwegian Ministry of Finance have drafted money laundering laws that are relevant to “Norwegian providers of storage and exchange services for virtual currencies.

The law exempts other crypto services from regulatory requirements, but it requires AML compliance for businesses like storage facilities and exchanges that deal in the conversion of cryptocurrencies to fiat money. “Finanstilsynet will ensure that suppliers of virtual money exchange and storage abide by rules against money laundering.

However, the FSA is not responsible for regulating other elements like investor protection, “The regulator issued an alert regarding these service providers. In June 2021, Finanstilsynet issued a warning noting that “Most cryptocurrencies are prone to considerable price volatility.” Loss is a real risk. Price formation is frequently obscure. A caution against major criminal activity was also included. To deceive customers, scammers use a variety of techniques, including spam, fake artwork, computer infections, and more “It received a warning. Wealth tax applies to bitcoin gains, and sales tax governs cryptocurrency use.

Poland

Cryptocurrencies: Not legal tender.

Like many other European countries, Poland has not adopted its own crypto legislation that go beyond EU requirements. The National Bank of Poland and the Polish Financial Supervision Authority (KNF) have both issued alerts on the risks associated with cryptocurrencies. The KNF claims that the Cryptocurrency markets are neither supervised or subject to regulation. The KNF does not authorise, manage or exercise any other form of control over cryptocurrency trading. Some cryptocurrency-related businesses are allowed to process payments. services, namely to settle payments made with legal tender (fiat money) in exchange for the costs of the traded cryptocurrencies.

The Polish AML regime’s adoption of AMLD had a significant impact on how crypto businesses were handled. The main goals were to encourage transparency and protect against unethical activities. By October 31, 2021, businesses were needed to register with the. Office of Finance.

Registration, however, neither grants authorization to operate nor provides legal protection; there is no connection between registration and a governing element. Poland has signed a statement to formally join the European Blockchain Partnership. Using cryptocurrencies is not recognised as legal tender.

Gains from digital assets are subject to capital gains and VAT taxes. Cryptocurrency is subject to a 19 percent tax in Poland, plus an additional 4 percent for anyone with yearly incomes over PLN 1 million.

Portugal

Cryptocurrencies: Not legal tender.

Despite having issued warnings about the risks connected with cryptocurrency, Portugal is recognised as the European country that is most crypto-friendly.

In April 2020, the Portuguese government announced a Digital Transition Action Plan.Its three most important pillars—the digital transformation of the state, the digital empowerment of people, and the digital transformation of businesses—were among its twelve components.The plan also resulted adaptable framework for regulatory oversight of technological research and testing.

A rule from 2016 states that because cryptocurrencies are not considered to be currencies, they are not recognised as legal tender and are therefore exempt from taxation. The country’s non-habitual tax regime (NHR), which provides tax exemptions and reductions for a 10-year term, has attracted a lot of cryptocurrency traders.

In a statement, the Portuguese tax authorities provided an authoritative explanation of the legal status of cryptocurrencies in Portugal.

Romania

Cryptocurrencies: Not legal tender.

It is legal to own and trade cryptocurrencies in Romania. 

Cryptocurrencies are viewed as digital assets or commodities, not legal cash or electronic money, similar to the majority of EU nations.

The Romanian government passed Part I of Law No. 129/2019, which is intended to prevent and combat money laundering and financing for terrorism, on July 18, 2019. To combat cybercrime, the emergency decree (“GEO”) mandates that providers of digital wallets and cryptocurrency trading services register with the authorities. Romania is included in the scope of the Fifth Anti-Money Laundering and Terrorist Financing Directive (“AMLD”). The AMLD’s goal is to make cryptocurrency transactions more transparent in order to stop unethical exploitation of the technology. To make crypto legislation in Romania more stringent, the Romanian government passed the GEO. The GEO was specifically enacted to achieve and enhance the AMLD’s goal.

“Digital wallet provider” is any “organisation that provides services for the secure storage of private cryptographic key services on behalf of its users, for the keeping, storage, and transfer of virtual money,” according to the GEO. Moreover, “reporting entities” also refer to “providers of digital wallets and exchange services between virtual currencies and fiat currencies.”

Cryptocurrency transactions in Romania are subject to income tax. Gains from Cryptocurrency investments are subject to a 10% tax. Gains from buying and trading cryptocurrencies are considered “income from other sources,” making them taxable. An annual income statement must include a disclosure of cryptocurrency profits.

Serbia

Cryptocurrencies: Not legal tender.

Currently, blockchain technology and cryptocurrencies are not specifically governed in Serbia. The same general laws that apply to the stock market, foreign exchange, money laundering prevention, payment services, tax, etc. also apply to blockchain technology and cryptocurrencies. The Securities Exchange Commission has so far sent investors in cryptocurrencies a warning letter and called for public input on the regulation of cryptocurrencies in 2019.

One of the few nations with the Law on Digital Assets is Serbia. Serbia is one of the first countries to regulate cryptocurrency trading in this fashion. Even though the Law went into effect in December 2020, its application didn’t start until June of the following year.

In the meantime, the National Bank of Serbia’s Governor issued a Decision on the execution of the Law on Digital Assets’ provisions for the issuance of licences for the provision of services linked to virtual currencies and the National Bank of Serbia’s approval.

Individual citizens of Serbia are subject to capital gains tax on the proceeds from the selling of cryptocurrencies. Taxes apply to 15% of the increase in cryptocurrency value between the time of purchase and the time of selling ( gross spread ).

San Marino

Cryptocurrencies: Not legal tender.

The institute intends to provide regulatory certainty, as well as oversight and enforcement of those regulations — as well as an anti-money laundering (AML) policy — particularly for initial token offerings (ITOs or ICOs).According to a recent document, the captains regent of the Republic of San Marino, Nicola Selva and Michele Muratori, have issued a governmental decree on blockchain technology for businesses. The new decree specifies the steps required to register a blockchain-based organisation with the “Istituto per l’Innovazione della Repubblica di San Marino,” or San Marino Innovation Institute.

Income tax is 17 percent, with a reduced rate of 6.5 percent.

Slovakia

Cryptocurrencies: Not legal tender

It is legal to own and sell bitcoin in Slovakia because there are no laws that clearly forbid or restrict its use.

The National Bank of Slovakia issued a warning in 2013 to the general public informing them that virtual currencies are not national currencies and that the manufacture of unlicensed currency is illegal.In Slovakia, laws governing cryptocurrency are somewhat harmonised with EU laws, necessitating a licence primarily for AML/CFT compliance.

NBS also makes reference to a report from the European Banking Authority (EBA) that examines cryptographic assets in the context of EU law. Authorities assert that there are instances where existing financial markets law is being implemented, despite the fact that the EU has not yet created a thorough legal framework for cryptocurrency businesses. For instance, the Second Payment Services Directive should be taken into consideration if cryptographic assets meet the criteria for being considered electronic money.

The Ministry of Finance provided instructions on March 23, 2018, stating that any cryptocurrency-related income must be subject to taxation.Profits from cryptocurrency are taxable for private individuals. Therefore, in a personal income tax return, cryptocurrency sales revenue is recorded under “other income.”

Slovenia

Cryptocurrencies: Not legal tender

It is legal to own and sell bitcoin in Slovenia because there are no laws that clearly forbid or restrict its use.

According to the Slovenian Act on Payment Services and Systems, cryptocurrencies are virtual currencies in Slovenia, which means that they are neither financial instruments nor monetary assets. The Anti-Money Laundering Act, which now specifically mentions cryptocurrencies, now considers all cryptocurrency exchanges and dealers engaged in cryptocurrency trades to be “financial institutions.”

7 April 2022 The government passed a measure that will charge natural persons a 5% tax if they exchange their cryptocurrency for fiat currency or use it to make purchases, but only if the total surpasses EUR 10,000 annually.

Sweden

Cryptocurrencies: Not legal tender.

In Sweden, cryptocurrencies are recognised as property, and trading and ownership are both permitted.Both the central bank and the Financial Supervisory Authority (FSA) have officially stated that while bitcoin is legal, it is not a recognised payment method or form of legal money. They are seen as an asset from a tax viewpoint rather than money or cash. The FSA has issued a warning78 about the dangers of cryptocurrencies and investment products that use them as underlying assets, like exchange-traded vehicles (ETPs). Swedish law mandates that exchanges, wallet providers, and custodians all register.

Different types of income are categorised under Swedish income tax law, including employment income, selfemployment income, business revenue, and investment income.Gains from capital are handledas a return on investment.Gains from capital are handledas a return on investment.Sweden has a fixed rate of capital gains tax on cryptocurrency transactions. thirty percent. Losses are deductible to a maximum of 70%. A progressive approach is used to calculate income tax, with typical rates are roughly 32%.

Swedish legislation does not control mining activity. There is no registration or licencing.

Spain

Cryptocurrencies: Not legal tender

Similar to its neighbour Portugal, Spain was one of the first EU states to accept payments in cryptocurrencies through shops and street-side bitcoin kiosks.

In 2021, the Bank of Spain, the Spanish Securities and Exchange Commission, and the Commission Nacional del Mercado de Valores (CNMV) collectively issued a statement warning against the volatility and risks associated with cryptocurrencies.The joint statement further mentioned that,beginning Legally speaking, cryptocurrencies are not a form of money and are not backed by any authority.a central bank, another government agency, or customer protection programmes.

The Royal Decree Law 5/202176 of Spain gave the CNMV the power to regulate cryptocurrency-related advertising. A report from the CNMV was published in January 2022.

To ensure that investors are aware of the risks, Circular 77 declared that it will begin to control the broad advertising of crypto assets, notably by social media influencers.Legally speaking, cryptocurrencies are not a form of money and are not backed by any authority.

The Spanish State Agency for Tax Administration (Agencia Estatal de Administración Tributaria, or AEAT) has yet to provide particularly detailed instructions on crypto taxation. According to the general advice, cryptocurrency is treated as an asset for tax purposes in Spain and is subject to personal income tax.

Switzerland

Cryptocurrencies: Not legal tender

It is acceptable to own and trade cryptocurrencies in Switzerland.

One of the countries in the world that is most accepting of cryptocurrencies is Switzerland.For all types of cryptocurrency businesses, the Swiss Financial Market Supervisory Authority(FINMA), Switzerland’s financial markets regulator, has created licencing procedures.Moreover, it has created requirements for blockchain firms, as well as bitcoin kiosk operations.Businesses that work with cryptocurrencies must obtain a FINMA licence and adhere to AML guidelines. The FINMA’s regulatory framework complies with the FATF’s digital asset legislation from June 2019. Switzerland’s regulations governing tokens were greatly improved with the adoption of the Federal Act on the Adaptation of Federal Law to Developments in Distributed Ledger Technology in July 2021. (the DLT Act).

In Switzerland, there is no income tax on capital gains from “private wealth assets.” Nevertheless, the following tax provisions may enable you to pay less tax on your cryptocurrency. As long as you’re a private investor, capital gains from cryptocurrencies are tax-free, so you won’t have to pay capital gains tax on your cryptocurrency.

The Swiss city of Lugano announced intentions to legalise bitcoin in March 2022 and allow residents to use it to pay taxes and other fees for public services.

Turkey

Cryptocurrencies: Not legal tender

The regulatory landscape for cryptocurrencies in Turkey is extremely complex due to the country’s ongoing financial, currency, and debt crises. Although owning cryptocurrency is not technically “illegal,” authorities have requested user information from crypto trading platforms and regulators.

Cryptocurrency is frequently used to evade taxes.The taxation of cryptocurrency or NFT transactions is presently not governed by any laws.In the event that cryptocurrencies are classified as “securities” or “commodities,” the following tax treatment would apply.

Securities:Cryptocurrencies must be viewed as “financial assets” in order for them to be considered securities, such as initial coin offerings. This means that in 2021, earnings from the acquisition and sale of cryptocurrencies, as well as commissions generated by cryptocurrency exchanges, that surpass 19,000 Turkish Liras will typically be liable to income tax.

Commodities: If cryptocurrencies, like Bitcoin, are regarded as commodities and the taxpayer is not operating a company or trade, then any gains for 2021 that exceed 43,000 lire will typically be taxed as income.

The Turkish Central Bank banned cryptocurrencies in April 2021 because to the possibility that they could be used either directly or indirectly to pay for goods and services. Bitcoin exchanges were added to a list by executive order in May 2021 by President Erdoan. list of companies covered by AML/CTF laws. Despite the critical remarks,limitations on usage in payments, a lack of regulatory oversight, and disregard for the public interest by  More Turks are utilising cryptocurrencies as they become more widely accepted and used.

The Financial Crimes Investigation Board (MASAK) oversees AML and compliance problems for bitcoin service providers. The cryptocurrency market, including ICOs and token offerings, is regulated by the Capital Markets Board (SPK). President Erdogan announced a plan for crypto asset service providers, and MASAK declared that a legislation governing digital assets would soon be introduced.

Turkey’s central bank is developing a digital currency.

United Kingdom

Cryptocurrencies: Not legal tender

Bitcoin and other cryptocurrencies are legal to trade and hold.The Bank of England, HM Treasury, and the UK Financial Conduct Authority (FCA) make comprise the country’s Crypto-assets Taskforce.The FCA has created KYC, AML, and CFT standards for cryptocurrency assets. It has also created regulations to safeguard VASPs without limiting innovation. Cryptocurrency exchanges must register with the FCA if they haven’t already applied for an e-money licence.

The FCA has banned the trading of bitcoin derivatives.A call for evidence on digital assets was published by the Law Commission in April 2021. The proposal asks for feedback from stakeholders before the publication of a consultation paper on digital assets that would include suggestions for new legislation.

In February 2022, complementary reform was released by the FCA and the UK government. recommendations to incorporate a few “approved crypto-assets” into HM Treasury’s financial promotion Financial promotion system and FCA guidelines for financial promotion.

There is no formal regulatory structure in the UK that addresses the activity of bitcoin miners.

The imposition of taxes depends on a variety of conditions, and cryptocurrencies are not recognised as legal tender.Cryptocurrencies are not specifically covered by UK tax law, but HM Revenue and Customs has made a determination about how to manage them based on common sense. When cryptocurrency is sold as a personal investment, capital gains tax is owed. If there is a lot of trading, income tax may be more important than capital gains.

Vatican City

Cryptocurrencies: Not legal tender

There is no restriction on the use of cryptocurrency.