Easily one of the most searched phrase related to digital currencies, ‘ … are crypto currencies legal ….’. The crypto world is more like the introduction of a brand new game into the Olympics. Rules and regulations evolve, the unexpected happens and changes take place. As interest in crypto currencies increases, first timers are doing some hectic Google searches. On one side is the temptation to rub shoulders with Bitcoin and become a millionaire, on the other is the fear of losing everything. In this report we reveal some important facts about the legality of these new world currencies, we also provide some down-to-earth suggestions.
Different countries have adopted different strategies to cope, with the ‘crypto tsunami’ that is ready to flood the financial world – sooner or later. Policies and regulations will change, so nothing is fixed and you will need to constantly stay updated. China for example has implemented a hardline attitude on these digital currencies. We expect them to loosen up as the days go by. This might reflect in an encouragement for home grown crypto currencies, with harsher regulations implemented for overseas offerings.
India with its massive base of IT literate citizens, seems to be me worried about formulating taxation laws to allow the government get its share of the pie. At the moment, the advice provided by government agencies, focus on the ‘buyer beware’ theme. Having said that, Indians residing abroad have shown a healthy participation in crypto currency buying, some new ICO issues are also backed by Indian brains.
While we are not going to bore you with a country wise list of crypto attitude in this report, we just cannot the cocktail attitude in the U.S. We have some states shouting a loud ‘No’ for crypto currencies and then, we have Arizona announcing that taxes can be paid using specific cryptos. Many ICO managers are confused just like local governments are. You will most likely come across ICO issues where, people residing in the U.S are not allowed to participate.
In the seemingly confused and disorganized global response towards crypto currencies, there is appears to be a clear pattern. Just two or probably three, attitudes have been found to exist. The number of nations that shout an absolute ‘No’ to virtual currencies is tiny and it is very likely that, there would be a softer stance in the near future. You then have a growing list of moderately friendly governments where, the policy has been to either accept or at least consider bringing these currencies into mainstream financial policies. And then you have a group which is probably headed by India, where crypto currencies would be welcome once, the government figures out how to generate its share of revenue by way of taxation.
What should you do at this point, should you just keep your feet dry and wait or test the waters with one foot. Our suggestion would be to give it a try unless, doing so would be illegal in the country where are located. At the same time, do not put in a lot of money and never dream of becoming a millionaire overnight.
Crypto ICO issues are a good try to make a beginning, projects with a clear roadmap and plan are a better option. Focus on ICO issues where the crypto token price is well below 0.20 USD. The idea is to get at least 5 to 6 tokens for 1 USD, which would mean that a 100 USD would buy you, a minimum of 500 tokens. While there is always a chance of you losing money, the amount would be limited. Let’s talk commonsense, the chance of a 0.15 USD token hitting 0.20 USD is clearly higher than, the chance of a 20 USD token hitting 22 USD. Don’t consider crypto currencies for your retirement portfolio and buy big, the time is not right for that.