Author of the material: Dmitry Machikhin, CEO of Bitnalog - a service for legal work with digital assets
If all this time cryptocurrencies have been carefully pullingbricks from the foundation of the financial system, then in 2021 they used explosives. Since the beginning of the year, the rate of adoption of cryptocurrencies as a payment instrument in the world has grown by 880%, according to ChainAnalysis. The three leaders of the Global Crypto Adoption Index were topped by Vietnam, India and Pakistan, leaving the United States and China far behind; in early September, El Salvador surprised everyone and recognized bitcoin as an official means of payment. However, judging by the retail value transferred online, most countries are aiming for a long marathon, not a sprint started by El Salvador.
One of the indicators of the country's successful transition tocryptocurrencies - the quality of interaction between government, cryptocurrency business and private crypto investors. This is clearly demonstrated by the examples of several developed and developing countries that have made significant progress on the thorny path of introducing digital currencies into the financial system. First of all, these cases are interesting not only from the legislative side, but also from the point of view of mentality and attitude to the issue in society.
The country occupies a leading position in the world inadoption of cryptocurrencies. In emerging markets, the situation is particularly favorable, where individual investors are turning to cryptocurrencies in a devalued environment to preserve their savings. So, at the moment, 1 million citizens own digital assets, and, according to the estimates of the Vietnamese government, with positive dynamics by 2030, this figure will grow 30 times.
At the same time, Vietnamese legislation is notmentions cryptocurrencies as legal tender, asset, or foreign currency. The supply and release of cryptocurrencies in the country is punishable by fines and imprisonment - but ownership, trading and investing in cryptocurrencies is not officially prohibited. In March of this year, the state bank of Vietnam began work on a pilot bill to regulate cryptocurrencies. The finished document should be released before 2023. According to the government, this is one of the steps in Vietnam on the path to the digital economy.
US income from bitcoin trading in 2020amounted to $ 4.1 billion - four times more than China, and ten times more than Vietnam. The United States accounts for more than 40% of the entire blockchain start-up market, largely due to loyal policies: over the past four years, the government has increased its blockchain spending by 10 times, reaching $ 123 million. Bitcoin in the United States is taxed as an asset similar to property. Users are required to report completed retail crypto transactions to the tax office. Like mining, buying and selling with cryptocurrencies includes capital gains tax.
On July 31, 2021, US Senators announced the imminentupdating financial legislation: the concept of a crypto broker will be expanded, and any owners of cryptocurrencies who make transactions will fall into this category. The bill caused heated controversy: in the current version, miners or developers of software related to cryptocurrencies fall under it.
By law, participants in transactions will be required todisclose user data that they may not have. But in general, in the US, people are more willing to pay taxes because legal awareness works better. While crypto assets were inherently a means of moving capital outside the control of the government, most people in the country understand that regulation in the crypto space is necessary for the prospects for wider technology diffusion.
India is the second fastest country in the worldImplementation of blockchain in the financial system: In 2021, Indian investment in cryptocurrency rose to $ 6.6 billion. This is a clear sign of the "new" thinking inherent in young investors who are looking to get away from gold and other precious metals.
Ironically, in 2018 the Reserve Bank of Indiaissued a circular banning the use of cryptocurrencies as legal tender. But in March 2020, India's Supreme Court overturned that ruling, allowing banks to process crypto transactions from traders and exchanges. A new bill on blockchain regulation has already been submitted for discussion in parliament and will be considered at the next session in 2021.
At the moment, cryptocurrencies in the Russian Federation are recognizedproperty and are not taxed, but the situation should change in the near future. So, in March 2021, the State Duma of the Russian Federation passed the first reading of the bill No. 1065710-7 on taxation of digital currency. The document obliges citizens and organizations whose annual turnover or cryptocurrency account balances exceed 600 thousand rubles to file income tax returns.
The bill also provides for the impositionfines for taxpayers hiding profits from cryptocurrency transactions. 2021 is recognized as the first reporting year, and an application for obtaining the right to dispose of digital currency, including through intermediaries, will need to be submitted no later than April 30, 2022. The size of the fine for tax evasion will be 40% of the tax amount, for violating the deadlines for submitting documents, holders of digital assets will pay 10% of the tax amount, and systematic tax evasion will threaten them with imprisonment for up to three years.
However, there is one important point here:in itself, the adoption of a law without accompanying work will change little. In order for the law to exist not only on paper, all branches of government will have to lay "rails" for it. For example, the judiciary will be required to create law enforcement practice, and the executive will need to draw up orders with detailed instructions for subordinate departments.
A separate role in this process will be played by thoseauxiliary services that will act as intermediaries between cryptocurrency holders and the Federal Tax Service in order to simplify the taxation process for both parties. Without their help, it will be more difficult for an ordinary user to understand the new intricacies of tax document flow, and the state may waste millions of rubles, which otherwise would have come to the treasury in the form of taxes.