Sep 30, · Bitcoin: Eastern Europe Increasingly Hostile to Crypto Miners. By P.H. Madore. 1 year ago Mon Sep 30 Reading Time: 2 minutes. Officials in Uzbekistan have announced a massive energy hike aimed at Bitcoin miners, but they are not the first in their region to take an exasperated stab at reining in the crypto industry. Cryptocurrency in Eastern Europe: Innovations, Companies, and Progress. A Bitcoin retailer spotted on the streets of Bulgaria (via Reddit) The Bulgarian government sees cryptocurrencies as a financial asset (and owns , BTC confiscated from criminals, which is more than Bulgaria’s GDP). Nuclear reactor Bitcoin eastern europe is a decentralized digital monetary system without a median bank or single administrator that can personify sent from user to somebody on the peer-to-peer bitcoin scheme without the need for intermediaries. proceedings are verified by network nodes through secret writing and recorded in nucleotide public.
Bitcoin eastern europeCryptocurrency in Eastern Europe: Innovations, Companies, and Progress | Bitcoin Insider
On 22 September , the Monetary Authority of Singapore MAS warned users of the risks associated with using bitcoin stating "If bitcoin ceases to operate, there may not be an identifiable party responsible for refunding their monies or for them to seek recourse"  and in December stated "Whether or not businesses accept Bitcoins in exchange for their goods and services is a commercial decision in which MAS does not intervene"  In January , the Inland Revenue Authority of Singapore issued a series of tax guidelines according to which bitcoin transactions may be treated as a barter exchange if it is used as a payment method for real goods and services.
Businesses that deal with bitcoin currency exchanges will be taxed based on their bitcoin sales. Thai based bitcoin exchanges can only exchange Digital Currencies for Thai Baht and are required to operate with a Thailand Business Development Department e-commerce license. The State Bank of Vietnam has declared that the issuance, supply and use of bitcoin and other similar virtual currency is illegal as a mean of payment and subject to punishment ranging from million to million VND,  but the government doesn't ban bitcoin trading as a virtual goods or assets.
AMBD however, advised the public not to be easily enticed by any investment or financial activity advertisements, and to conduct due diligence and understand the financial products properly before participating. There is no law that stated that holding or trading bitcoin is illegal. The Financial Market Authority FMA has warned investors that cryptocurrencies are risky and that the FMA does not supervise or regulate virtual currencies, including bitcoin, or cryptocurrency trading platforms.
Croatia's Financial Stability Council warned investors about the risks of virtual currencies, such as digital wallet theft and fraud, on December 18, The National Bank of Croatia issued a similar warning on September 22, Businesses and individuals who buy, sell, store, manage, or mediate the purchase or sale of virtual currencies or provide similar services must comply with the anti-money laundering law.
Bitcoin is classified as intangible asset not as electronic money for the purpose of accounting and taxes. On 19 August , the German Finance Ministry announced that bitcoin is now essentially a "unit of account" and can be used for the purpose of tax and trading in the country, meaning that purchases made with it must pay VAT as with euro transactions. It is not classified as a foreign currency or e—money but stands as "private money" which can be used in "multilateral clearing circles", according to the ministry.
It recommends using the term "crypto token. In November , a legislation passed by German parliament allows the banks to sell and store cryptocurrencies starting from 1 January The use of bitcoin in Poland is not regulated by a legal act at present. They added that trading virtual currencies in Poland does not violate national or EU law, however, having virtual "currencies", involves many risks: 1 risk related to the possibility of loss of funds due to theft, 2 risk related to lack of guarantee, 3 risk of lack of universal acceptability, 4 risk related to the possibility of fraud, 5 risk of high price change.
Financial institutions should be cautious about engaging and cooperating with virtual currency "trading" entities. As of March , an official statement of the Romanian National Bank mentioned that "using digital currencies as payment has certain risks for the financial system".
In October , the National Fiscal Administration Agency ANAF declared that there is a lack of a legislative framework around bitcoin, and therefore, it is unable to create a tax regulation framework for it as well implying no taxation. In January , Law nr. In addition, there is a new subpoint, Article The National Bank of Slovakia NBS , stated  that bitcoin does not have the legal attributes of a currency, and therefore it cannot be considered a currency.
At the same time NBS points out that any legal person or natural person in the Slovak Republic shall not issue any notes or any other coins. Unlawful manufacturing of banknotes and coins and putting them into circulation is punishable by law. In this context, NBS points out that virtual currencies have not a physical counterpart in the form of legal tender and participation in such a scheme virtual currency is at your own risk. Exchanges or purchases of virtual currencies represent the business risk of investors and investors' money are not protected.
For any compensation of losses caused by such exchanges or purchases there is no legal entitlement. On 23 December the Slovenian Ministry of Finance made an announcement  stating that bitcoin is neither a currency nor an asset. Bitcoin businesses in Switzerland are subject to anti-money laundering regulations and in some instances may need to obtain a banking license.
On 5 December , a proposal was put forth by 45 members of the Swiss Parliament for digital sustainability Pardigli , that calls on the Swiss government to evaluate the opportunities for utilization of bitcoin by the country's financial sector. In response to the parliament postulates, the Swiss Federal Council issued a report on virtual currencies in June In , Zug added bitcoin as a means of paying city fees, in a test and an attempt to advance Zug as a region that is advancing future technologies.
On 21 May , Albania passed a new law to regulate cryptocurrency activities. The Decree On the Development of Digital Economy — the decree of Alexander Lukashenko , the President of the Republic of Belarus , which includes measures to liberalize the conditions for conducting business in the sphere of high technologies.
The provisions of the decree "On the Development of Digital Economy" create of a legal basis for the circulation of digital currencies and tokens based on blockchain technology, so that resident companies of the High-Tech Park can provide the services of stock markets and exchange offices with cryptocurrencies and attract financing through the ICO.
For legal entities, the Decree confers the rights to create and place their own tokens, carry out transactions through stock markets and exchange operators; to individuals the Decree gives the right to engage in mining , to own tokens, to acquire and change them for Belarusian rubles , foreign currency and electronic money, and to bequeath them. Up to 1 Jan In , the Decree excludes revenue and profits from operations with tokens from the taxable base.
In relation to individuals, the acquisition and sale of tokens is not considered entrepreneurial activity, and the tokens themselves and income from transactions with them are not subject to declaration. The peculiarity of the introduced regulation is that all operations will have to be carried out through the resident companies of the High-Tech Park. Denmark's Financial Supervisory Authority issued a statement declaring that bitcoin is not a currency and stating that it will not regulate its use.
As of [update] , FSA says that doing business with bitcoin does not fall under its regulatory authority and therefore FSA does not prevent anyone from opening such businesses. In Estonia, the use of bitcoins is not regulated or otherwise controlled by the government. The Estonian Ministry of Finance have concluded that there is no legal obstacles to use bitcoin-like crypto currencies as payment method.
Traders must therefore identify the buyer when establishing business relationship or if the buyer acquires more than 1, euros of the currency in a month. The Finnish Tax Administration has issued instructions for the taxation of virtual currencies, including the bitcoin. Purchases of goods with bitcoin or conversion of bitcoin into legal currency "realizes" the value and any increase in price will be taxable; however, losses are not tax-deductible.
Mined bitcoin is considered earned income. This is because the court classified bitcoins as payment instruments - whereas most countries treat their use as an unregulated method for the exchange of goods, or even as a crime. According to a opinion, from the Central Bank of Iceland "there is no authorization to purchase foreign currency from financial institutions in Iceland or to transfer foreign currency across borders on the basis of transactions with virtual currency.
For this reason alone, transactions with virtual currency are subject to restrictions in Iceland. On 12 March , the Central Bank amended its rules. With the new rules, wide and general exemptions have been granted from the restrictions of the Foreign Exchange Act No. Bank of Lithuania released a warning on 31 January , that bitcoin is not recognized as legal tender in Lithuania and that bitcoin users should be aware of high risks that come with the usage of it.
The Norwegian Tax Administration stated in December that they don't define bitcoin as money but regard it as an asset. Profits are subjected to wealth tax. In business, use of bitcoin falls under the sales tax regulation. The Norwegian government stated in February that they would not levy VAT on the purchase or sale of bitcoin. The decision has been appealed by the Swedish Tax Authority. The Swedish jurisdiction is in general quite favorable for bitcoin businesses and users as compared to other countries within the EU and the rest of the world.
The governmental regulatory and supervisory body Swedish Financial Supervisory Authority Finansinspektionen have legitimized the fast growing industry by publicly proclaiming bitcoin and other digital currencies as a means of payment.
There is not a single word in Bulgarian laws about bitcoin. No specific legislation on bitcoins exists in Greece. Italy does not regulate bitcoin use by private individuals. As of [update] , Malta does not have any regulations specifically pertaining to bitcoins.
Muscat specifically addressed the bitcoin blockchain's ability to handle, store and process sensitive data in an immutable and decentralized ecosystem. In the same press release the NBRM quoted the law on Foreign Exchange Operations, but since cryptocurrencies do not constitute a foreign currency as they are quoted by the law, it leaves them unregulated.
Bitcoin has no specific legal framework in Portugal. Transactions in bitcoins are subject to the same laws as barter transactions.
The Minister of Finance indicated that government intervention with regard to the bitcoin system does not appear necessary at the present time. The French Ministry of Finance issued regulations on 11 July pertaining to the operation of virtual currency professionals, exchanges, and taxation. The Central Bank of Ireland was quoted in the Assembly of Ireland as stating that it does not regulate bitcoins. The Commission de Surveillance du Secteur Financier has issued a communication in February acknowledging the status of currency to the bitcoin and other cryptocurrencies.
As of [update] , virtual currencies such as bitcoin do not fall within the scope of the Act on Financial Supervision of the Netherlands. Bitcoin is treated as 'private money'. When bitcoin is exchanged for sterling or for foreign currencies, such as euro or dollar, no VAT will be due on the value of the bitcoins themselves.
However, in all instances, VAT will be due in the normal way from suppliers of any goods or services sold in exchange for bitcoin or other similar cryptocurrency. Profits and losses on cryptocurrencies are subject to capital gains tax.
They have proposed a code of conduct that includes the provision of Anti-Money Laundering and extra security measures. In December , the governor of the Reserve Bank of Australia RBA indicated in an interview about bitcoin legality stating, "There would be nothing to stop people in this country deciding to transact in some other currency in a shop if they wanted to. From Wikipedia, the free encyclopedia. This list is incomplete ; you can help by adding missing items with reliable sources.
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Retrieved 8 January Deal Book New York Times. It stands to reason that such a large European country is forward-thinking when it comes to finance. The attitude of local financial regulators towards investing in cryptocurrencies is quite positive. In a statement from , the ministry stated that despite virtual currencies not being subject to any separate regulations under Polish legislation, they are fully legal and subject to income tax.
Along with that, the government supports blockchain startups. For example, in January , the financial and budgetary supervision service of Poland KNF granted state licenses to blockchain startups Coinquista and Bitclude.
The Verkhovna Rada has registered a bill proposing to legalize cryptocurrency. Plans for this were announced back in , but then authorities did not dare to take such a step. Cryptocurrency transactions are not legalized in the country, however, according to local media reports, digital money is popular in Moldova. In the center of Chisinau, there are several points that accept digital money as a means of payment. In May , the Association of Digital and Distributed Technologies of the country introduced its own cryptocurrency exchange that accepts fiat like Moldovan Leu, the Russian ruble, the US dollar, and the Euro, as well as all top ten cryptocurrencies.
Moreover, in , this small country hosted its first conference on blockchain and cryptocurrencies called the World Blockchain and Cryptocurrency Summit Chisinau — WBCSummit. The Transdniestrian Moldavian Republic DMR adopted a law on the development of information blockchain technologies, which technically makes cryptocurrency mining legal. According to the president of DMR, the law will contribute to the development of the information technology industry and attract investment from entities operating in the field of blockchain technologies.
DMR may become a paradise for miners. The law provides for the creation of a targeted free-trade zone, where foreign companies and individuals can become legal entities without additional bureaucratic procedures. Thus, the country is becoming a relatively attractive region for investment. Local authorities have guaranteed the duty-free import and export of mining equipment for residents and special electricity tariffs for miners.
The president promised that the energy supply to mining farms will be provided by the Dubossary hydroelectric station and three thermal power plants. Who would have thought that such a small country like Georgia could become a world leader in the field of cryptocurrency mining?
At least 60 MW of electricity was officially spent on the mining of virtual currency in the country. The first, and perhaps most important, thing that attracts mining lovers to Georgia is cheap electricity. And there is plenty of it since, after the collapse of the USSR, small Georgia inherited 20 hydroelectric power stations from the defunct Soviet state.
The country was meant to become a kind of energy hub in the Caucasus. Obviously, such a large amount of electricity for a country with a population of 3. As a result, the cost of electricity in Georgia is among the lowest in the world. So, as of May , the price of 1 kW in Tbilisi was approximately 6 cents.
Belarus is another strong Eastern-European player in the field of mining. Though mining has lost ground after Bitcoin halving, Belarus is ready to invest its fairly cheap energy to gain profit from BTC mining.
In , during a meeting with representatives of the IT sector in Hi-Tech Park, Alexander Lukashenko said that he was going to employ a new Belarusian nuclear power plant, to mine Bitcoins. The president explained he wanted to use the surpluses of electric power to ensure the operation of mining farms.
This trading platform supports trading pairs with many leading cryptocurrencies and local fiat currencies like the euro, Russian ruble, Ukrainian hryvnia, Polish zloty.
The website is available in Russian, Ukrainian, Romanian, and other languages. The service provides structured information about automatic and manual exchangers of crypto and electronic currencies, and also supports the ruble and hryvnia. Freewallet apps are highly rated for their built-in exchange and fee-free transactions within the ecosystem. A few months later, a second one was installed in Tbilisi.
As of November , there are 14 cryptomats operating in the country. Poland is one of the largest countries in Europe that welcomes the development of blockchain technology. The largest Polish food delivery service Pyszne.
This innovation took place after the purchase of the service by Dutch investors. Currently, Pyszne. The Czech Republic might be small, nevertheless, it ranks sixth in the world in the number of crypto ATM machines. Most of them are set in Prague. Bitcoin ATMs can be found not only in large shopping centers and electronics stores but also in kiosks at metro stations, along with printed materials, cigarettes, and tickets. The number of Czech companies and organizations that accept Bitcoins as payment is increasing, and not all of them are related to the IT field.
On the list, you can find the largest electronics store Alza. A real estate agency Home Hunters has been in the public eye since it closed on a Bitcoin-deal, which at that time exceeded 5 million korunas. Also, there are places like Krypto, a local gas station, FairPlayAuto , a second-hand car marketplace, and a number of hotels and restaurants.
There is a large list of exciting blockchain and crypto projects out of Eastern Europe. We will start with the fintech startup with Russian roots Zerion. The company deals with investing and managing decentralized assets. It was founded in by graduates of the Higher School of Economics and has 15 thousand users. Recently Zerion acquired the crypto platform MyDeFi that facilitates viewing crypto portfolios. No wonder Belarus is on the list of the top 10 European countries for launching a blockchain startup.
One of the local projects you might have heard of is Rocket DAO , a decentralized crowdfunding platform with independent expert evaluations of startups. These venture capitalist market analysts work with Hi-Tech Park, Angels Band, Volat Capital, Belagroprombank, friendly accelerators and foreign funds to allow startup founders to quickly and safely attract financing.
The company provides startup audits, mentoring programs, and unique assessments. Czech Republic takes 27th place in the Global Innovation Index. The country is the cradle of innovative projects like Apiary whose parent organization is Oracle Corporation.