On April 16, 2021, the Central Bank of the Republic of Turkey issued a regulation prohibiting the use of cryptocurrencies, including Bitcoin and other digital assets based on distributed ledger technology, directly or indirectly to pay for goods and services, citing possible “irreparable” damage and transaction risks as of April 30, 2021. [73] [74] The first recognition of the existence of cryptocurrencies by Indian law came through circulars issued by the Reserve Bank of India (“RBI”), India`s central bank, from 20131 to 2017 (“warning circulars”).2,3 These warning circulars warned “users, holders and traders” of cryptocurrencies, including Bitcoin, of financial risks, operational, legal, customer protection and potential security they face. China`s crackdown on cryptocurrency mining could have been an opportunity for e-money enthusiasts in India. But the lack of infrastructure and basic policies can prevent them from being overly optimistic. In accordance with IMC`s report and brochure, the Lieutenant Governor of RBI confirmed RBI`s intention to present a CBDC in a public speech delivered on July 22, 20211111. In the speech, it was pointed out that a CBDC would require a basic legal framework, as the current legal provisions were created with paper money in mind. The Deputy Governor further noted that “in modern economies, money is a form of money issued exclusively by the state (or a central bank as its representative). It is a liability of the issuing central bank (and the State) and an asset of the public holding company. The currency is fiat, it is legal tender. Money is usually issued in paper (or polymer) form, but the shape of the currency is not its defining characteristic. In 2016, the National Bank of the Republic of North Macedonia issued a press release about an investigation into ONECOIN, discouraging citizens from investing in it, as it was most likely a scam. In the same press release, the NBRM cited the law on foreign exchange transactions, but since cryptocurrencies are not foreign currencies as cited by the law, they are still not regulated.

[182] The Commission de Surveillance du Secteur Financier issued an opinion in February 2014 recognizing the currency status of Bitcoin and other cryptocurrencies. [184] The first BitLicense was issued in October 2015. [185] On April 17, 2020, SEBI issued a notice under the Regulatory Sandbox (SEBI) rules calling for 202033 relaxation of the application of the remaining rules “to promote innovation in the technological aspects related to the testing of new products, processes, services, business models, etc. in the real-world regulatory sandbox environment in securities markets.” In August 2020, India`s Insurance Regulatory and Development Authority also developed a regulatory sandbox “to create a safe and conducive environment for experimenting with innovative approaches (including FinTech solutions) in the insurance industry.”34 Unlike the RBI framework, none of these sandboxes have a specific inclusion or exclusion of crypto assets, venture capital or blockchain. Each request in the respective sandbox will be reviewed on a case-by-case basis by the respective regulatory authority. The crypto industry in Iran is not regulated, the Central Bank of Iran (CBI) allowed national banks and exchange offices in April 2021 to use locally and licensed mined cryptocurrencies to pay for imports into the sanctioned country. On November 4, 2013, Bank Negara Malaysia (BNM) met with local Bitcoin advocates to learn more about the currency, but did not comment at the time. [113] BNM issued a statement on January 6, 2014 that Bitcoin is not recognized as legal tender in Malaysia. The central bank will not regulate bitcoin operations at this time and users should be aware of the risks associated with using bitcoin. [114] [115] [3]: Malaysia A comparison of the titles of the former Bill and the proposed Bill shows that the word “prohibition” was conspicuously omitted from the Bill. This, coupled with the clarifying circular, indicates that the government is weakening its position on cryptocurrencies in India.

As of 2021, Vladimir Putin has said that Russia accepts the role of cryptocurrencies and that cryptocurrencies can be used for payment. [155] Egypt has classified cryptocurrencies such as Bitcoin as prohibited by Islamic law. Dar al-Ifta, the country`s main Islamic advisory body, issued a religious decree in 2018. Another relevant aspect is that the House of Commons Bulletin/Lok Sabha of January 29, 202121,24 awaits the introduction of the legislative proposal. The purpose of the bill is to provide a framework to facilitate the creation of the official digital currency that will be issued by the RBI. The bill also aims to ban all private cryptocurrencies in India. However, it allows some exceptions to promote the underlying technology of cryptocurrency and its use. In recent years, cryptocurrency mining has increased in India.

Companies like Easyfi Network provide mining facilities and blockchain development in the country. WazirX`s Shetty believes there could be other small mining operations in some parts of the country. However, there is no official information about this. Those in the ecosystem believe that supporting crypto mining could bring many benefits to the country. “If you allow these (mining) operations, there are two things that can come with it: one is investment and the other is employment. And there is an economic activity that generates around it. So India could benefit if it wanted to,” Shetty said. On December 23, 2013, the Slovenian Ministry of Finance issued an announcement[142] stating that Bitcoin is neither a currency nor an asset. There is no capital gains tax on Bitcoin, but Bitcoin mining is taxed and companies that sell goods/services in Bitcoin are also taxed. In addition, the old bill proposed in the IMC report defines a “miner” as “a person engaged in the mining of cryptocurrency” and “mining” is defined as “an activity aimed at creating cryptocurrency and/or validating a cryptocurrency transaction between the buyer and seller of cryptocurrency.” As mentioned above, the old bill also proposed to ban cryptocurrency mining in India. In August 2022, the Taliban banned cryptocurrency trading. [57] “Clearly, the printing of a note is illegal.

However, in India, the law is still not very clear on cryptocurrency mining, and that is why some of the miners were jailed in 2017-18, and the cases are still ongoing,” Mishra said. Recent news that Google and Facebook are investing in the Indian digitization market has also given hope to crypto miners. Last week, Subhash Chandra Garg, a former finance minister who drafted the bill banning cryptocurrency in India, suggested during a webinar to regulate cryptocurrency as a commodity. Webinar organizers CREBACO Global and Khaitan & Co., a law firm, are currently building a new framework on digital currencies in India, which will be submitted in a month. The Estonian Ministry of Finance has concluded that there are no legal obstacles to the use of Bitcoin-like cryptocurrencies as a payment method. Merchants must therefore identify the buyer when entering into a business relationship or if the buyer buys more than 1,000 euros of currency in a month. [169] While some states have expressly authorized its use and trade, others have prohibited or restricted it.