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In the US, the IRS has provided clear guidance to the public regarding the tax treatment of the purchase and sale of virtual currencies. The SEC, through its FinHub division has provided two separate ‘No-Action’ letters to blockchain companies seeking to have their tokens exempted from securities regulation. New York, Montana, Arizona, Maine, Nevada, and Vermont, have each put laws on the books to both protect consumers and provide clarity to in-state traditional financial institutions.

Certain European countries promulgated regulatory frameworks for blockchain more quickly than the US. Gibraltar, Malta, Estonia, Switzerland and Liechtenstein spring to mind as the regulatory early-birds. Germany allows residents to trade virtual currencies (basically this means there is no ban in place but it does not tell us if there is regulatory clarity), but they are taxed.

In Australia they have promoted the rules or not. Most of the guidance is provided by the tax authority.

Asian countries have taken varied stances on virtual currencies and blockchain tech, too. Japan appears to be welcoming and has recognized virtual currency as a legal means of payment. In comparison, Bangladesh, Nepal, and Kyrgyzstan have outlawed using virtual currencies in any fashion. While China initially allowed Bitcoin mining, the country has recently reversed its stance with strict regulation.

It’s far easier to export a virtual currency than it is to export the tax and legal framework required to inspire the confidence that leads to global capital inflows. But, jurisdictions that have made the effort have already reaped begun reaping the rewards in the form of increased business creation and increased tax revenue.