Although there are still many uncertainties regarding cryptocurrency, those who really want to inform themselves can easily find all the necessary information online. Of course, one needs to know where and for what exactly info to look for, but overall, the fact that we live in a digital age makes all the research much easier and efficient. Now, what we can all agree on, even the fiercest crypto critics, is that cryptos are something that changed our perception of the financial systems as we know it and that they also represent something that will stay with us for quite some time.
The acceptance of blockchain tech is much broader than just a few years ago
When the crypto revolution started, there were not that many people interested or even informed enough about what digital money is all about, not to mention how these new currencies work. Even today, many are still oblivious of blockchain technology and its importance, but things are changing and for the better. Namely, this technology got widely accepted as something that can really make a difference in the way we do things, and it’s not just from the financial aspect, as many industries have already accepted and implemented it into their work. All that, combined with the global hype over investing in digital money, mostly due to possible large profits, has totally changed the crypto market, as much more people were willing to accept cryptos as a payment method and a unique global currency that’s not owned or overlooked by any government.
Every country in the world has its own set of laws and regulations regarding cryptocurrency
On the other hand, this doesn’t mean that cryptos are still unregulated, far from it because even governments recognized the potential and possible profits they can gain by passing certain laws and adding taxes for crypto ownership as digital assets and crypto transactions. That is why, before investing in digital money, you should do your homework regarding the laws of the country you live in, in order to avoid any unpleasant situations. As we said, every country has a different set of laws and regulations regarding digital money, but let’s focus on Europe today, or, to be more precise, the European Union, as even though some may think that the regulations are the same or pretty similar, you would be surprised by how much they can differ, so let’s go through the top FIVE things to know about cryptocurrency regulations in the EU that everyone who is planning to invest in cryptos should definitely know about.
Crypto transactions in the EU
EU should work as a great system with the same regulations and rules within the whole union for everything, but, in reality, things are different. Although using digital money in the EU is not something new, people are still not used to it, and the percent of the people who use them regularly is not pretty high. That does not mean that it is illegal and impossible to use them, as they are welcome in the whole European Union. The main thing to know is that every country has its regulation when it comes to crypto transactions, and you should read them and learn before you choose to make one to avoid any possible confusion. It is expected that in the future, more and more people will start using cryptos, and the terms and regulations will be the same in the whole union, but for now, you should read carefully the regulations of the country in which you reside. Furthermore, you should also expect the introduction of digital EURO as a new digital currency in the near future.
We already mentioned that every country in the EU has its own regulations about transactions, it shouldn’t come as a surprise that the taxes are not the same too. They can vary from 0% in some countries to up to 50% in others which is not a minor difference. Because of that, using digital money without learning about the taxation process in a certain country might be pretty dangerous, and you can lose more money than you planned. The best advice is to choose the country with the lowest taxes, and there is no need to worry about extra fees and unplanned costs. One of the countries in Europe that are not crypto-friendly taxation-wise is definitely France, with a 66% tax rate on all crypto transactions. On the other hand, some of the European countries with the best regulations are definitely Malta and Portugal, Germany, and Slovenia, with 0% taxation, but with just one exception as in Slovenia, companies issuing crypto tokens must deduct Value Added Tax. Also, European Union has one of the best trading platforms, and if you are interested in investing in them, check bitcoineranew.com/se.
Changed terms for stablecoins
It is impossible to write about digital money and regulations and not mention stablecoins because they are another important part of them. They are similar to cryptos, but they were made to try not to be so volatile and hold the same price for some time since they are always associated with the value of gold or some fiat money. Stablecoins have two roles in the crypto market, and they are the option to turn the profit into them instead of turning it into fiat money when you plan to invest it again in some cryptos and to be one of the best ways for savings. Stablecoins value is not increasing exponentially over time, which makes them one of the most stable currencies. They are under strict regulations, and transparency of their transactions is something that needs to be on a high level. Being under strict regulations creates a huge problem because the regulation in the EU implies that stablecoins need to be traded in the EU, and it is the same even for those stablecoins that are already in circulation. What does that mean for the users? Well, those stablecoins that have already existed for a long time simply need to wait to be authorized before they can be used within the European Union.