Slovenia
The Current Status of Crypto Adoption in Slovenia Source: Pexels Slovenia is at the forefront of cryptocurrency adoption, propelled by technological innovation, a favorable backbone, and increasing public demand. The country has demonstrated a strong enthusiasm for crypto, as evidenced by its global leadership in crypto-related online searches. With a monthly average of about 100,000 searches, or 4,789 searches per 100,000 people, across the world, Slovenia has the highest per capita state of cryptocurrency-related search queries. This interest is the result of widespread curiosity and awareness among its population about digital currencies. The country is also the base of the Blockchain Alliance Europe, a not-for-profit international group that supports the adoption of blockchain and cryptocurrencies in Europe. Inventions of the government and the financial sector confirm Slovenia’s successful role in the crypto market. In 2024, Slovenia became the first European Union country to issue a sovereign digital bond. This 30-million-euro (32.5 million) bond settled on-chain through the Bank of France’s tokenized cash system marked a significant milestone in financial market modernization. “The digital bond, which carries a 3.65% coupon rate and is set to mature on November 25, 2024, was issued and placed by BNP Paribas.” — Tokenizer Slovenia’s government has highlighted that such experiments are at the heart of improving the efficiency of financial transparency through the use of distributed ledger technology. Crypto Law In Slovenia Source: Pexels Slovenia made its national legislation conform to the MiCAR Act ( Implementation of the Regulation (EU) on Markets in Crypto-Assets.) Its laws for asset-referenced tokens and e-money tokens have been enacted and applicable since 30 June 2024, and the remaining regulations for other crypto assets and service providers will be applicable from 30 December 2024,. While the Banka Slovenije is responsible for the procedure of e-money token white papers, for supervision of electronic money institutions (EMIs), and for supervision of anti-money laundering (AML) and counter-terrorist financing (CFT) processes; the Securities Market Agency (SMA) manages authorizations, grants, and withdrawals; crypto asset white paper approval; and crypto asset service providers’ supervision. Under MiCAR, issuers of e-money tokens and asset-referenced tokens need to get prior approval, present transparent information content in a crypto asset white paper, and meet with authorities. MiCAR requires compliance and subjects defaulters to huge fines for violations. Additionally, the Act sets forth requirements that issuers and service providers must meet to enhance transparency and reporting. As a consumer, these rules also improve protection through the requirement of transparency and through the limitation of who is allowed to issue or control crypto assets. The Prevention of Money Laundering and Terrorist Financing Act (ZPPDFT-2) applies to crypto asset service providers. These entities put in place reliable AML/CFT provisions, which include submitting an application to the Office for Money Laundering Prevention and complying with reporting requirements to avoid criminal acts. The ZPPDFT-2 also contains provisions for the registration of virtual currency service providers so that all service providers in operation in Slovenia comply with the legal requirements. Noncompliance may lead to denial of registration, fines, and other enforcement actions. Among consumers, MiCAR provides basic protection. However, consumers are required to verify that issuers and service providers are MiCAR compliant and that the underlying crypto asset whitepapers meet regulatory requirements. Unregulated landscapes, for instance, fully decentralized crypto assets (e.g., Bitcoin) and non-EU provider services, are still beyond the reach of MiCAR. Consumers active in these fields are in greater-risk situations, such as fraud or loss, with restricted liability. To reduce these risks, consumers are encouraged to read disclosures, confirm authorizations with regulators, and be cautious in negotiating unregulated platforms or asset products. Taxation of Cryptocurrency in Slovenia Source: Pexels Slovenia is one of the most advanced countries in Europe for cryptocurrency enterprises and investors. The Slovenian government has fostered a climate around blockchain innovation by developing a tax-advantaged regulatory framework and precise legal scope for crypto-related business. In Slovenia, cryptocurrencies are considered to be virtual currencies, unlike financial instruments or monetary assets in Slovenian Law. This difference affects the taxability of crypto transactions for individuals and businesses. For individuals, income received as cryptocurrency—whether from mining or employment—is taxed as personal income. Its value is calculated using the euro exchange rate on the date of receipt. Nevertheless, capital gains arising from cryptocurrency trading are usually not taxed. This is because cryptocurrencies are not classified as financial instruments or shares, profits from trading are outside the scope of the Slovenian capital gains taxation. On the other hand, those who are engaged in the crypto business (e.g., the day traders or the miners in the individual capacity) need to include the income tax on their capital gains. These activities are taken as business income and taxed as such. For companies, crypto taxation is dependent on the type of activity and accounting treatment. Income from cryptocurrency (trading, mining, and receiving crypto payments) is taxed at the standard corporate income tax rate of 19%. For example, mining operations see their profits treated as regular profits. Companies are obliged to have euro-currency accounts for transactions according to Slovenian corporate law because business cannot be done only in the form of cryptocurrencies. In line with EU regulations, cryptocurrency transactions as a means of payment are VAT-exempt in Slovenia. This is consistent with the decision made by the European Court of Justice that classifies cryptocurrency in the same way as other currencies. However, Slovenia does not allow VAT deductions for crypto mining activities or related hardware purchases. ICOs in Slovenia are subject to taxation under the Slovenian Corporate Income Tax Act and ordinary accounting rules. Axioms of business expenses are applied to the revenue from token sales to calculate the taxable amount. Although the Slovenian business context is business-friendly, businesses participating in ICOs shall respect corporate tax rules and remain transparent. For individuals, capital gains tax applies variably depending on the holding period. For cryptocurrencies held for less than 2 years, the proceeds are subject to tax, whereas for cryptocurrencies held for a longer period, usually they are not subject to
San Marino
The Current Status of Crypto Adoption in San Marino San Marino, a tiny “Microstate,” has a rich history and is increasingly developing into an innovative hub for crypto and blockchain technology. Although tiny and relatively unknown in the tech world, San Marino is using its legislative flexibility to help create a flourishing blockchain ecosystem. Their government’s transparency and active role in embracing crypto has put the country in the limelight as a pioneer of innovation. One example is the introduction of progressive legislation and innovative blockchain functionalities. San Marino started its path towards blockchain regulation in 2015, and this is yielding results for the country. The most notable advancement is Delegated Decree No. 2nd of January 2024, which regulates Distributed Ledger Technologies (DLTs). This decree is one step in a broader plan to provide a safe but also scalable space for blockchain businesses. Moreover, the Central Bank of the Republic of San Marino (CBSM) has already made a public consultation to devise a framework for the regulation of crypto assets that is likely to take into account the European Institutions’ Markets in Crypto-Assets Regulation (MiCAR). “The Regulation will be adopted once the primary regulatory framework is established. Its main goal is to introduce a specific supervisory framework into the San Marino legal system, based on the principles established at the European level by EU Regulation No. 2023/1114 (known as MICAR).” — Central Bank of the Republic of San Marino (CBSM) San Marino’s efforts extend beyond regulations. The country has also implemented practical blockchain solutions, such as its groundbreaking use of NFT vaccine passports. Working with VeChain, the Italian Sangro River Valley region designed digitized COVID-19 certificates using blockchain technology to guarantee secure, irreversible, and reliable proof of vaccination. All of the passports are then presented as non-fungible tokens (NFT) on the VeChainThor blockchain, enabling easy cross-checking without the use of any additional apps. This initiative also focused on the usefulness of blockchain technology for practical purposes and showed that the government is willing to get the best technology available today to address current problems. The use of cryptocurrency by the citizens of San Marino is on the increase due to the enabling policies from the government and the growth of blockchain use cases. The state provided an inviting environment not only for startup companies but also for corporate companies in the blockchain space. Further, employees in blockchain companies also have social benefits, subsidies, and residency programs, and this makes San Marino an attractive place to work for tech professionals. Despite these advancements, challenges remain. San Marino’s small internal market and restricted international influence set limits on the extensibility of its blockchain efforts. Also, the policy aims to promote new investment and growth through innovation. While the regulatory standards are intended to foster growth in the economy, they may be too high for most small-scale business enterprises. Nevertheless, their aggressive business strategy, as well as joining alliances with other players and offering broad-based schemes, ensures that San Marino does not fall off the radar of the crypto and blockchain industries. Crypto Law In San Marino In 2015, San Marino already began to prepare the legal groundwork for the deployment of blockchain regulations, which indicates that the country is prepared to harness the potential of this technology. Even if it is not present in the European Union, the country follows high European parameters for its legislation, guaranteeing that all laws of the country adhere to international standards. The cornerstone of this approach lies in a series of legal decrees and guidelines aimed at fostering innovation while maintaining robust oversight. The basis of San Marino’s crypto legislation is Delegated Decree No. 37 of Feb. 27, 2019. The technological specifics outlined in Blockchain Council of Georgia, Inc. This decree was crafted after an extensive study of regulatory models from blockchain-forward jurisdictions like the U.S., Switzerland, Singapore, and Luxembourg. It aims to maintain quality standards and reduce bureaucratic hurdles. The decree categorizes blockchain tokens into three types—utility tokens, security tokens, and payment tokens—based on their functionality and the rights they confer. Utility and security tokens are regulated on quite specific terms, but payment tokens are not due to their lesser market adoption. San Marino legislation is particularly noteworthy in its treatment of Initial Token Offerings (ITOs). Entities issuing utility tokens shall submit to San Marino Innovation, the authorities of innovation of the country, at least 20 calendar days before going live with that token. Thus, for security tokens, more stringent requirements are applied, such as the preparation of an information prospectus under financial regulations. In contrast to the U.S. model, where it is the issuance bodies that retain more freedom, in San Marino, it is required of entities whose authorization must be obtained before ITOs can be registered. Moreover, token issuers can operate across international borders under the regulations of San Marino, thereby broadening the scope of the law from the country. Another of the most striking aspects of San Marino’s crypto-legal framework is the introduction of trusts for blockchain entities. This unique approach enables the centralization of token issuance and investor relations with investors irrelevant from the issuer operations. This trust framework offers more transparency and has better user protection as compared with standard company structures. The primary consideration regarding San Marino’s blockchain law is its transparency and compliance with anti-money laundering (AML) regulations. As such, the capital standards established by the decree are stringent and high-level money laundering (AML) measures, especially for high-risk transactions. Only entities that are in compliance with the AML requirements of the State of San Marino (and with similar requirements in their respective home jurisdictions) are allowed to run, to provide a safe and reliable environment for digital asset transactions. Taxation of Cryptocurrency in San Marino San Marino’s cryptocurrency taxation law is designed to encourage innovation but, at the same time, fiscal prudence. Delegated Decree No. 2, January 2024, regulation of technologies based on Distributed Ledgers (DLTs), clarifies the treatment of crypto-assets and related tax liability. By providing
Mauritus
The Current Status of Crypto Adoption in Mauritius The stunningly beautiful island nation of Mauritius is positioning itself as a potential center for cryptocurrency and blockchain innovation, particularly through its International Financial Centre (IFC). Offering a pro-business environment, strategic location, and sound regulations, Mauritius is setting itself up as an attractive destination for digital asset initiatives. This will help with the island’s ambition to be the “Singapore of Africa,” promoting cross-border finance, investment, and wealth management. Mauritius’ IFC stands at the heart of the economic landscape with its operational efficiency in introducing new financial products, including digital assets and cryptocurrencies. The regulatory environment of the Mauritius IFC is shaped by the Financial Services Commission (FSC), which adheres to internationally recognized standards, given that Mauritius is itself a respected jurisdiction for financial services. The Organization for Economic Cooperation and Development has “white-listed” Mauritius for its stringent AML measures, improving its international reputation in finance. This notwithstanding, in 2020, the European Union gray-listed Mauritius over perceived deficiencies regarding AML requirements; however, the island nation has since made some marked progress toward closing regulatory chasms and meeting compliance thresholds. Cryptocurrency has been adopted by the government of Mauritius as an investment class of digital assets. With some set of restrictions for retail investors, this regulatory position has created a very friendly atmosphere for digital asset firms looking to enter Africa. The Bank of Mauritius is keen on exploiting this opportunity for a Central Bank Digital Currency (CBDC), meaning the country will be at the forefront of fintech innovation in Africa. The governor of the central bank, Harvesh Seegolam, announced a plan for the rollout of a CBDC as part of a wider strategy in Mauritius for driving financial inclusion and integrating digital finance. The move has received support from international agencies such as the International Monetary Fund, IMF, as consultations with the body on matters related to CBDC design and functionality continue. The proposed advantages of a Mauritian CBDC are improved security, better compliance, and deeper financial inclusion, especially among the unbanked. In any case, the CBDC of Mauritius will co-circulate with cash, affording the citizenry the choice to use digital fiat without its imposition. The central bank also hopes to tap into the cross-border functionalities of the CBDC for international trade flows and remittances in a bid to advance Mauritius’s goal of becoming a bridge between Africa and the global market. While Mauritius has done a commendable job in trying to regulate digital assets, challenges remain. For instance, the island still needs to work on refining its services related to the custody of digital assets and statutory protections for investors in digital assets. Besides, the inherent risks of investment in cryptocurrencies still exist, threatening potential investors. Crypto Law In Mauritius Mauritius’ eagerness to create a proactive, accommodating regulatory framework for virtual assets, striking the proper balance between innovation and tight compliance standards, has been applauded by experts. A number of initiatives put in place by the island nation were designed to create a friendly environment for digital assets. One of them was the 2016 Regulatory Sandbox License (RSL). This license creates the avenue for innovative firms to test blockchain and fintech projects without the need for a full regulatory license, hence accelerating their path into the market. RSL supported numerous projects in the field of fintech and blockchain and could be replicated in the African market. In June 2020, Mauritius issued guidelines on the licensing of “security token trading.” These guidelines require persons or entities offering custody services in respect of digital assets to apply for a Custodian Services (Digital Asset) license from the FSC. Such custodianship services, which the guidelines refer to as “Trading Securities Systems,” or TSS, are subject to strict conditions. Prospective parties must meet the standard requirements for cybersecurity, have a minimum capital of 35 million rupees, and have a board structure with at least three directors, one resident, and 30% independent directors. The other requirements include that they have an office in Mauritius as well as maintain updated, detailed transactional records besides quarterly and annual financial statements of the investment to be filed with the FSC within the prescribed time frame. However, a caveat exists that investors will not benefit from any statutory compensation schemes in Mauritius. Therefore, projects raising funds through STOs would need to obtain pre-approval from the FSC, unless their intention is to sell only to “sophisticated” or “professional” investors, professional funds, or schemes for investment. Also, solicitation of transactions in security tokens without a license would be a crime under the Securities Act. The Virtual Asset and Initial Token Offering Services Act (VAIOS Act) 2021 encompasses activities from direct sales of tokens and exchanges to custody and staking services, which require entities to obtain licenses based on the business model. In addition to the various licensing requirements, the businesses in question must adhere to AML and CFT regulations under the Financial Intelligence and Anti-Money Laundering Act 2002, FIAMLA. This AML/CFT focus acts as a testament to how far Mauritius has come concerning international financial standards and supports investor confidence. Taxation of Cryptocurrency in Mauritius Taxation of cryptocurrencies in Mauritius is a rather complex issue that has been guided principally by the general principles of taxation rather than by specific legislation. Consequently, the Mauritius Revenue Authority (MRA) would consider general principles of tax law as there is no regulation regarding such cryptocurrencies as Bitcoin or Ethereum. Taxation for crypto-assets that are exchanged against fiat currency like the USD or EUR depends on the nature of gains. However, if income constitutes revenue—that is also derived from an activity that is considered commercial or of a business nature—then it falls within the tax and forms part of the gross income of the taxpayer. This distinction highlights the fact that there might be cases in which income is held to be revenue just because there is sufficient trading or exchanging taking place. Along the same line of thinking, the use of crypto assets to obtain goods
Honduras
The Current Status of Crypto Adoption in Honduras Source: Pixabay Until recently, Honduras adopted a restrictive approach towards cryptocurrency, spearheaded by the National Banking and Insurance Commission, better known by the acronym CNBS. The country issued a blanket ban on cryptocurrencies, emphasizing that they are not allowed to be included in the financial system due to fraud, money laundering issues, or possible terrorism financing. The same, under this mandate, forbids institutions supervised by CNBS from holding, trading, or offering crypto assets, virtual currencies, or any other similar kinds of digital assets in advance without previous authorization issued by the Central Bank of Honduras (BCH). This comes in step with the CNBS drive to guarantee financial stability and consumer protection amid the volatility in the crypto market. Although this is a form of regulation, there are no laws that clearly address crypto transactions between private citizens or small businesses, and some of those platforms continue unofficially to allow people to trade in cryptocurrencies. This decision further supports the continuous statement of the BCH, which in these years has launched several warnings, informing people about financial risks linked to cryptocurrencies. It also highlights that cryptocurrencies are neither legal means of payment nor recognized within the frames of the national financial regulator. Honduras’s stance on cryptocurrency starkly contrasts with developments in neighboring El Salvador, whose President Nayib Bukele has wholly embraced cryptocurrency. To encourage wider adoption, Nayib Bukele, President of El Salvador, recently donated two bitcoins to the Honduran non-profit organization Students Helping Honduras—proof of his belief in the potential socio-economic benefits of adopting cryptocurrency in Central America. While Honduras stays conservative about cryptocurrency, parts of the country and local communities are actively working on projects friendly to digital assets. One of the most notable examples, Bitcoin Valley, located in the small town of Santa Lucia, which is not more than an hour’s drive from the capital city of Tegucigalpa, serves as a tourist attraction that would allow the local businesses to receive Bitcoin as a means of payment. Blockchain Honduras, in conjunction with the Guatemalan exchange Coincaex and the Technological University of Honduras, made this feat possible. Besides this, in 2022, Honduras Prospera—a semi-autonomous zone on the Caribbean coast—took another route by declaring Bitcoin legal tender in spite of the national policies. The model city has its independent legal framework from Tegucigalpa, which enables it to allow transactions in Bitcoin, to the extent that one can even pay taxes with the asset. The zone also shields residents from capital gains taxes on crypto, going even further toward being business-friendly. Prospera’s adoption of Bitcoin gives evidence of the increasing interest in blockchain technology within Honduras. Crypto Law In Honduras Source: Pixabay Until recently, cryptocurrency regulation in Honduras was developing but largely unsettled. There are limited crypto-specific regulations currently, and the financial oversight of Honduras generally rests on its fintech laws. The most recent law confers authority on the Central Bank of Honduras and the National Commission of Banks and Insurance and seeks to regulate digital payment systems, including electronic wallets and fintech platforms. The current, if not the most important, BCH regulations are the “Regulation for Payment and Transfer Services Using Electronic Money” and the “Regulation for Services Offered by Electronic Payment Service Providers.” Together, they help modernize Honduras’ fintech ecosystem, opening up space to innovation while providing the setting of safeguards for users. These regulations create an ordered framework for those providing financial services through technological platforms and bring clarity regarding digital transactions. They also interact with older laws such as the Securities Market Law and the Financial System Law that provide basic guidelines on the procedural standard for financial transactions and definitions of financial products. Even though there are no actual reporting duties on the part of FinTech companies under AML legislation, financial institutions do have an obligation to share information according to the Money Laundering Prevention Law, with an undertaking of confidentiality by the latter when an investigation is involved. To take care of the financial ecosystem, Honduras has put in place strict compliance regulations regarding the operation of both FinTech and traditional institutions. Their infringements can be subject to administrative sanctions that may be in the form of fines or even prohibition of activities; such would be only applied to the contracting party and not any third-party providers of whatever services are involved by way of outsourcing. In any case, regulation of cryptocurrencies could be far into the future as Honduras continues to observe trends from around the globe, and maybe even guidelines in line with the FATF Standards on Digital Assets are already in contemplation by the Board of Financial Innovation. Taxation of Cryptocurrency in Honduras Source: Pixabay In Honduras, no comprehensive structure for taxing cryptocurrency transactions exists yet, as Honduran tax law is based on a territorial system to the largest extent. The country taxes income sourced within Honduras, which touches individuals and entities carrying out crypto-related activities locally. The definition of income under the law is “any gain or profit derived,” and it may include crypto earnings. However, the lack of specific crypto tax guidelines means there will be continued uncertainties about reporting, valuation, and tax rates related to income from cryptocurrencies. While the rule of territoriality applies to individuals or businesses associated with cryptocurrency, it also considers the generated income from within Honduras. Residents will hence be liable for income coming from within Honduras, which may include crypto if regulators consider it a taxable asset. Non-residents are equally liable in terms of income tax on their crypto earnings if these derive from sources in Honduras. There are also no treaties on double taxation in Honduras that may be relevant for cross-border crypto transactions. While digital assets are not directly mentioned, businesses and individuals have to find their way within the existing system without specific guidance; general principles of taxation apply, and those can be applied differently by the authorities. Factors Driving Crypto Adoption in Honduras Source: Pixabay Some factors driving crypto-asset adoption in Honduras include
Qatar
The Current Status of Crypto Adoption in Qatar Source: Pexels The government heavily regulates crypto adoption in Qatar. In February 2018, Qatar’s Central Bank’s Supervision and Control of Financial Institution Division (QCB) issued a directive classifying Bitcoin and other cryptocurrencies as “illegal and unsupported.” The rationale behind the prohibition was due to concerns over price volatility and financial crime risks and not backed by any central authority. The circular stated that all banks operating in Qatar were strictly forbidden from dealing in any activity related to cryptocurrencies and would be punished for any violation. This view was further enforced by the Qatar Financial Centre Regulatory Authority (QFCRA) in January 2020 through the official prohibition of all virtual asset services within its territory. This law affected any “substitute for currency” that one can “trade or use for payment or investment purposes for goods or services.” Further, the QFCRA move came in tune with Qatar’s overall AML and CTF policies in Law No. 20 of 2019. While opposing cryptocurrencies, Qatar has taken an interest in digital assets as part of its strategy for the digital economy. This fact is supported even by the launch of the Digital Assets Framework 2024 by QFC. Notably, cryptocurrency remains out of the mainstream of this framework, reflecting skepticism by the Qatari government about its speculative nature and possible misuse. The Digital Assets Framework focuses on tokenization—a process of digitizing such tangible assets as real estate, gold, and bonds. This aligns with Qatar’s initiative to boost innovation in the digital economy while at the same time avoiding the pitfalls associated with cryptocurrencies. The framework provides companies the ability to apply for token service provider licenses, hence ensuring that transactions in digital assets are secure and regulated. Despite all the regulatory restrictions, over time, interest in cryptocurrencies did grow among individual investors in Qatar. Global trends—integration of blockchain technologies and the rise of institutional players such as BlackRock—only improved crypto awareness. Still, interest remains essentially speculative, and many potential investors need a clear regulatory framework. Though it has kept cryptocurrency banned, blockchain technology has entered different aspects of Qatar’s financial and digital arenas. Projects such as “Secure End-to-End Blockchain-Based Solution to Trade Finance,” spearheaded by researchers such as Dr. Mazen El-Masri, signal the willingness of the country to explore blockchain for better security and efficiency in trade finance. While Qatar has maintained severe opposition to cryptocurrencies, the Digital Assets Framework 2024 indicates that it is prepared to move toward digital asset innovation. According to market observers, Qatar may be softening its stance on cryptocurrencies, but only after sound frameworks can be instituted for evaluation and international practices. Crypto Law In Qatar Source: Pexels In September 2024, Qatar jumped into the world of digital assets by presenting the QFC Digital Assets Framework 2024. This marks a great stride toward turning Qatar into one of the big fintech hubs in the Middle East. The regulation was in addition to the grounds laid by the Third Financial Sector Strategic Plan of the country targeting regulatory framework modernization and innovation in financial technologies. The new framework comprises the Digital Asset Regulations, DAR 2024; the Investment Token Rules, TOKN 2024; and the Investment Token (Miscellaneous Amendments) Rules, ushering in a new frontier in financial regulation. Whereas DAR 2024 sets out the broad rules of digital assets, the focus of TOKN 2024 is narrowed to investment tokens—that is, tokens representing financial interests in real-world assets or products. The regulations bring digital asset investment closer to traditional financial markets by categorizing investment tokens as financial instruments. They are subject to a rigorous set of rules, much like those in the traditional financial markets, on their issuance, trading, and custody. In this respect, TOKN 2024 follows naturally from DAR 2024 to ensure that tokens with implications for the real world operate with similar levels of scrutiny as any other investment products. This makes the new world of digital assets blend with well-established frameworks such as AML regulations, customer protection laws, and investment management rules. Taxation of Cryptocurrency in Qatar Source: Pexels Qatar’s position on the taxation of cryptocurrency is indeed a balanced approach, treading between innovation in the digital economy and adherence to international norms on taxation. Although specific legislation aimed at bringing cryptocurrencies under taxation has not been introduced so far, the general framework put in place rests on general tax principles and best practices available globally. In Qatar’s tax jurisdiction, most cryptocurrencies are intangible assets and fall in line with other digital assets such as intellectual property and goodwill. The tax treatment of a cryptocurrency transaction often depends significantly on the type of activity related to those transactions and a taxpayer’s status. As for individuals, Qatar applies flat income tax at 10% on all their taxable income, which includes income from possible cryptocurrency-related activities. While gains from capital are not liable for tax, capital gains derived upon the sale or exchange of cryptocurrencies are normally included in taxable income. In respect of companies, the rate of tax goes up to 15% on locally sourced profits, other than those operating within the Qatar Financial Centre (QFC), for which a preferential rate of 10% applies. If one generates any income through mining, staking, or other activities from cryptocurrency, those too are generally subject to taxation under the existing rules of income taxation. Where the cryptocurrencies are used to purchase goods or services, and if the value of such a digital asset has appreciated since its acquisition, this will generally be a taxable event; it is considered a partial disposal of an asset. Currently, while Qatar has not provided for any specific exemption or deduction related to digital asset transactions, it is submitted that general provisions may apply, such as the deductibility of expenditure in respect of the business or qualified charitable gifts. Proper documentation is still critical to ensure that there is compliance with tax laws and regulations in this regard. Hence, a taxpayer must maintain very accurate records of the date of each transaction,
Namibia
The Current Status of Crypto Adoption in Namibia Source: Vecteezy Crypto adoption in Namibia falls between genuine interest, regulatory caution, and the dark side of scamming targeted at locals and foreign investors. Whereas Namibians take a liking to cryptocurrency as it serves as an alternative investment option against the harsh economy, the scams are obviously on the rise, giving the technology a bad name. Namibia introduced the Virtual Assets Act in July 2023, and this move is considered a milestone toward the legitimization and regulation of cryptocurrency activities. Among other things, it seeks to have Virtual Asset Service Providers (VASPs) registered and enforces strict protocols to prevent fraud, money laundering, and terrorist financing. This regulation framework looks to protect Namibians by setting standards that encourage legitimate crypto businesses while limiting the potential for fraud. But the growth of cryptocurrency scams, and lately a high-profile bust where 20 suspects were rounded up, underpin the challenges facing crypto adoption in Namibia. The scam, masterminded by a group of 11 Chinese nationals, five Zimbabweans, and two Namibians, saw it manipulate young Namibians by first recruiting and training them to lure American investors into a sham crypto investment scheme. It derived its nickname, “pig butchering,” from online romance scams where a perpetrator gains the victim’s trust before introducing them to a fake cryptocurrency trading platform promising high returns. This scam not only defrauded foreign investors but also exploited Namibian youths. According to Namibian police, 88 young people, mostly students, were recruited under false job promises, then trafficked and controlled to conduct scams on behalf of their foreign employers. They were held in accommodation provided by the scam operators, paid roughly 3,000 Namibian dollars, or about $200, per month, and given limited access to phones for contacting potential victims. There are reports that suspects have been withdrawing proceeds from Bitcoin kiosks in Namibia’s shopping malls. Incidents like these illustrate the dual nature of crypto adoption in Namibia: with the development of genuine crypto transactions and interests, there is also an escalation in the exploitation of the technology by scamsters. These rising risks have pushed Namibian authorities like Bank Windhoek to issue warnings against growing numbers of crypto-related scams while cautioning against crypto investments. Cryptocurrency is therefore both an opportunity and a risk, factoring into a broader trend across the continent, where digital currencies usage has been extremely strong due to limited access to traditional financial services with the promise of supernormal returns. However, as scams are becoming more and more sophisticated, the need for robust regulation and public education can no longer be ignored. However, some Namibians are still attracted to the speculative gain of cryptocurrency in a climate where most conservative investment avenues do not offer a high return. The Namibian government has therefore, imposed policies, restrictions, and possible penalties for violators—including fines and imprisonment. Crypto Law In Namibia Source: Pexels Namibia’s way of acknowledging cryptocurrencies is an interesting mix of being cautious and gradually opening up to the technology, particularly with the passing of the Virtual Assets Act (VAA), in 2023. This new legislation demonstrates how Namibia tries to keep pace with financial innovation while securing the stability of its finances and the interests of consumers. The VAA ensures that VASPs operate under a licensing framework with AML/CFT requirements. The VASPs must be registered in Namibia and conduct their business therein, have secured systems to protect the information of customers, and separately account for and hold customers’ funds from those used in the operation of the business. This oversight thus seeks to mitigate the potential risks associated with the quasi-anonymous nature of cryptography, particularly its potential misuse in illegal activities. This puts the Bank of Namibia in a position, vis-à-vis the VAA, to effectively regulate the cryptocurrency space, going as far as to suspend or withdraw a VASP license if perceived activities appear to threaten the integrity of the financial system. Besides that, the Payment Management Act of 2023 further extended the legal status to legally recognize cryptocurrency-based payments as one form of payment service—under certain consent conditions. The parties during a transaction must mutually consent to the use of cryptocurrency, and the supplier of the system of payments should be licensed. Another important factor is the Namibian Currency and Exchanges Act and the Exchange Control Regulations, which deny permission for virtual currency exchanges to be established within the country. Thus, this policy adds another layer of restriction as there is no formal framework for trading or converting any cryptocurrencies to the Namibian dollar or any foreign currency. These Exchange Control Regulations, amongst other things, ensure that any form of activity with a view to trading or exchanging one currency for another requires the approval of the central bank; hence, in effect, making cryptocurrency exchanges illegal within Namibia. Taxation of Cryptocurrency in Namibia Source: Pexels On the taxation side, Namibia does not give any special recognition to cryptocurrencies under its existing tax regime, and capital gains tax, applicable to mining and petroleum activities, is not yet effective in all respects. It only taxes dividends originating from securities, excluding cryptocurrencies, when paid to non-residents, which may indirectly create an incentive for crypto investments in certain situations. In 2023, Namibia went a step ahead to introduce a tax on digital assets, including cryptocurrencies and NFTs, as a proactive step in addressing the challenges associated with such assets. This policy aims at capturing revenue from crypto transactions while managing the risks of pseudonymity that make it difficult to enforce. Its approach to taxing crypto assets as property and not as currency is an idea that has been recommended by the IMF, thus allowing Namibia to balance its protection of financial innovation with fiscal oversight. On the other hand, such vagueness in asset classification for tax purposes has exposed some of the lingering complexities as authorities work to adapt the tax system to evolving digital markets. Factors Driving Crypto Adoption in Namibia Source: Pexels Put together, the following factors create an environment that is unique for
Benin Republic
The Current Status of Crypto Adoption in Benin Source: Pixabay Cryptocurrencies have taken off in many ways in Benin, and this is due to factors like restricted access to traditional banking services and a strong desire for financial inclusion. Since 3.6 million of the adult population of Benin does not have access to banking solutions, most people tend to seek other solutions like cryptocurrencies that offer easier and decentralized ways of storing and transferring money. The widespread use of mobile technology is another factor driving adoption: with 83% of Beninese people owning a phone, many have progressively begun to use cryptocurrencies for cross-border payments and as a means of protecting their values. Digital wallets have made it possible for people to send and receive money without using traditional banks, which is a crucial option in a nation where bank infrastructure is still scarce. However, precise data on cryptocurrency ownership in Benin is not as easily accessible as it is, for example, in other African countries such as Nigeria, where crypto ownership is estimated to be around 46%. Even so, available data does reveal that adoption rates are rising gradually as improved access to digital financial tools and mobile internet becomes available. As crypto usage spreads, the government is taking steps to establish some level of regulation for safe use. Crypto Law in Benin Source: Pixabay Cryptocurrency regulation in Benin is at the developmental and experimental stage, with credible strides to bring the policy up to international financial standards. Benin is collaborating with ECOWAS and other members of the West African Economic and Monetary Union to create policies that ensure all virtual assets adhere to local, national, and international financial laws. Being a member state, Benin adheres to ECOWAS regional drives toward harmonization of cryptocurrency regulations within the West African sub-region and also sets out directives to curb the possibility of fraud and money laundering . Benin passed Law No. 2024-0 on February 20, 2024, following the WAEMU’s directive on anti-money laundering and financing terrorism. This law focused on Virtual Asset Service Providers (VASPs) and regulated their activities in the country. In light of the law, it has been mandated that prospective VASPs shall obtain preliminary approval or preliminary authorization from relevant authorities before providing services in Benin to ensure they meet certain qualifications on transparency, security, and adherence to AML/CFT laws. Law No. 2024-01 is one of the many initiatives by the Beninese government concerning the use of cryptocurrency for fraud, money laundering, and terrorism financing risks. By imposing strict regulatory policies, Benin plans to protect its citizens against the risks that come with virtual assets while assuring interested parties of a secure environment to trade and invest in cryptocurrencies. Likewise, the Ministry of Economy and Finance has also been quite vocal in warning all citizens about unregulated cryptocurrency investments. Through a public statement, the Ministry warned against fraudsters masquerading as cryptocurrency trading experts who promise people that investing their savings in highly volatile virtual assets would yield very impressive returns. Besides that, the Ministry has reiterated that though cryptocurrencies are an innovation, they cannot replace the traditional currency nor be used legally as a means of payment in the Benin Republic. Being a member of the West African Economic and Monetary Union, legal tender in Benin is still the CFA franc (FCFA), and any promotion of cryptocurrencies as a substitute for traditional money is considered illegal. As such, Law No. 2024-01 expresses Benin’s commitment to maintaining the financial integrity of the WAEMU while exploring the possible benefits of the digital economy. Taxation of Cryptocurrency in Benin Courtesy: Pixabay The General Tax Code in Benin serves as the primary regulation for cryptocurrency taxes, as it is classified as intangible property. While other legal frameworks are being developed, this tax regulation focuses on the transaction’s income and capital gains. This means that cryptocurrencies are subject to both capital gains and income taxes in Benin and all parties. In addition, it’s important to maintain accurate records of all cryptocurrency transactions. Crypto enthusiasts in Benin are required to comply with the tax regulations and to carry out accurate tax reporting, such individuals must keep accurate books and records of all purchases and sales. Although Benin’s recently implemented VAT tax code (Article 224 of GTC; Tax Administration Note of 2023) targets cross-border digital services. This may also apply to services related to cryptocurrencies offered through e-commerce platforms. Nonresident platforms providing such services to consumers in Benin may be required to pay VAT, especially in Business-to-Consumer (B2C) transactions. For failure to comply with the application of tax regulations on cryptocurrencies, penalties involve fines and the noncompliant entity being listed publicly. Factors Driving Crypto Adoption in Benin Courtesy: Pixabay Statistics predict that there will be 196,500 crypto users in Benin in 2025, demonstrating the country’s growing interest in cryptocurrencies. This is commendable despite Benin’s average revenue per user being just US$8.8. Factors affecting Benin’s adoption of cryptocurrencies include: Financial Inclusion The biggest force behind the adoption of cryptocurrencies in Benin is achieving greater financial inclusion. A large population is underbanked or unbanked in Benin, indicating an inability to access any form of financial services officially. Blockchain technology as well as cryptocurrency provides a barrier-free alternative to traditional banking systems. Cross-border payments and remittances Just like other developing nations, Benin is heavily dependent on remittances from its diaspora community. With traditional remittance channels, these transactions are typically affected by high transaction costs and stressful withdrawal processes. Meanwhile, with cryptocurrency, transactions can be done more quickly and affordably as the lack of middlemen lowers costs, making them very feasible for Beninese families and businesses. Rising Digital Literacy Another factor is Benin’s growing usage of mobile phones and increased digital literacy. Due to the growth in the use of mobile wallets and other mobile-centric financial services, the majority of people now find digital financial management to be more comfortable. Beninese are more inclined to adopt cryptocurrencies and use them for their day-to-day activities. Economic Instability Benin experiences economic
Gambia
The Current Status of Crypto Adoption in Gambia Source: Pixabay Gambia, a culturally rich country with a small but resilient economy, has just made a groundbreaking move to include cryptocurrency in its financial ecosystem. From being cautious, Gambia is now following the step of other burgeoning digital finance landscapes of West African countries by introducing a regulatory framework that embraces cryptocurrencies and the full benefit accrued to digital currencies. Historically, Gambia’s approach to cryptocurrency can be described as a “watchful waiting” approach. Crypto transactions were in a gray area because of a lack of formal regulations in place, and this exposed users to potential fraud, security breaches, and volatility associated with unregulated markets. As crypto adoption increased around the country and the world, more Gambian leaders appeared to appreciate the potential and challenges digital assets pose. This watchful approach has evolved into a well-thought-out regulatory strategy that caters to Gambia’s recognition of the financial and economic opportunities of crypto in 2024. In a recent progressive development, Gambia introduced a regulatory sandbox in order to encourage innovation in fintech. Within this framework, startups and established businesses can experiment with new crypto products and services in a confined and supervised space. This blocks any harm and allows business growth as they can create and innovate while mitigating risks to the consumers and the financial system. In addition, the sandbox model is an excellent opportunity for Gambia to keep up with the rapidly changing digital financial landscape, allowing local young entrepreneurs to flourish and draw funds without jeopardizing security. By encouraging this type of risky innovation, Gambia is preparing the ground for the evolution of new digital tools that can help maximize economic progress in the nation. Crypto Law In Gambia Source: Pixabay 2024 is undoubtedly a crucial year in the context of Gambia’s journey of formulating a legitimate framework to regulate cryptocurrencies. Gambia’s outlook toward regulating cryptocurrencies matured from the absence of rules to acceptance and the use of digital currencies. Previously, Gambia had taken a rather cautious attitude and posture towards cryptocurrencies, tolerating them without specific legal frameworks. This lack of regulation left crypto-transactions in a gray area, where there were no prohibitions but neither were there any protections from risks like fraud or market manipulation. The Gambian cryptocurrency regulatory landscape touches key pillars, starting from giving digital assets legal recognition to consumer protection, anti-money laundering protocols, and driving fintech innovation. Legal recognition of digital currencies remains one of the crucial steps towards bringing clarity to crypto activities. Such a move ushers in possible policies on taxation, compliance, and investor protection, just like those seen in many parts of the world. The government of Gambia has enforced tight crypto regulations on exchanges and wallet providers due to the volatility of digital currencies. The regulation demands security standards, operational transparency, and user protection akin to the highest bar. In such a way, such regulations provide a way for investors to be safe from security breaches and fraud, The Gambian authorities, in a bid to curb illicit dealings, have made it mandatory for crypto service providers to subject themselves to AML and CTF standards that include KYC and reporting suspicious transactions. Such regulations will align with international best practices that aim to protect the integrity of the financial system of Gambia from being compromised by new digital currencies and ensure they are not used in any form of illegal deal. Taxation of Cryptocurrency in Gambia Source: Pixabay The income tax system in Gambia, as highlighted by the Income and Value Added Tax Act of 2012, does not consider the inclusion of cryptocurrency taxation. This act has principally provided for the imposition of taxes on incomes derived from businesses, employment, and property, with imposed taxes upon individual and corporate earnings. Furthermore, a value-added tax is imposed on goods and services in the country. The Act does not consider cryptocurrency to be an asset that is taxable; income or gains related to crypto are therefore not defined under Gambian law. For example, when persons or companies receive cryptocurrency through investment gains or as income, such earnings would not be classified or taxed within the existing structure by the Gambia Revenue Authority. Most countries with clear legislation on cryptocurrencies classify such assets as capital and are therefore taxed with regard to capital gains, or income, depending on the nature of the transactions. When Gambia considers the implementation of its regulations concerning digital assets in the future, such classifications can be pursued by instituting income tax on crypto earnings or capital gains tax on profits from trading. In the meantime, crypto regulation in the Gambia pertaining to legal recognition and anti-money laundering will reach taxation in due time as the government tries to find a balance between innovation and fiscal responsibility. Individuals and businesses operating in The Gambia who are presently involved in crypto activities are advised to consult tax professionals who will take the necessary steps that comply with the general income and business tax laws until such time as more specific crypto-related laws are enacted. Factors Driving Crypto Adoption in Gambia Source: Pixabay The drivers of crypto adoption in Gambia are multidimensional, complex, and deeply set in socio-economic, technological, and cultural dynamics. These dynamics include the following reasons: Economic Instability and Protection against Inflation Like many other African countries, Gambia is plagued daily by currency fluctuations and economic turmoil that affect their local purchasing power. Cryptocurrency offers Gambians a form of store of value and an opportunity to hedge their resources from the influence of inflation. Demand for Financial Inclusion Traditional banking access is poor in Gambia, with zero financial infrastructure in the rural areas. Cryptocurrency offers an avenue for the unbanked population to access digital financial services independent of bank branches or complicated documentation. Need for Affordable, Effective Remittances The Gambia receives a high volume of remittances from the diaspora, and different traditional channels charge very high fees for their remittance services, reducing the amounts recipients get. Cryptocurrency transactions are faster at a
Israel
The Current Status of Crypto Adoption in Israel Source: Pixabay Cryptocurrency adoption in Israel extends well beyond the tech community, further affecting an ever-larger share of the general public. Israeli brokers have provided crypto trading for over a decade, while Israeli consumers have readily embraced international platforms that facilitate the buying and trading of digital assets. According to the Israeli Crypto Blockchain & Web3 Companies Forum (iCryptoForum), at least 174 blockchain-related companies are based in Israel, with around 3800 professionals. Israel’s involvement in crypto investments, algo trading, cybersecurity, RegTech, and technical infrastructures further places them top of the global crypto market. The Israeli Bitcoin community came into existence as early as 2011, subsequently giving rise to the Israeli Bitcoin Association in 2013, a nonprofit entity committed to extending exposure and use of Bitcoin and other cryptocurrencies. The association has been very effective in maintaining a positive atmosphere, promoting education, and supporting the benefits of crypto. Among the developments observed in Israel’s cryptocurrency regulation environment, one notable example is the Bank of Israel’s plans for the nation’s CBDC, also known as the “digital shekel.” While still in the study phase, the possible issuance of such might positively impact Israel’s financial environment. The digital shekel would make all digital transactions easier, potentially reduce financial friction, and have wider use by the general public if or when it’s adopted. At the same time that the Bank of Israel demonstrates its proactive stance toward CBDCs, the effect of this on decentralized digital assets is yet to be fully realized. The CBDC would need to compete with privately issued cryptocurrencies, particularly stablecoins. This could shape public perception and policy on digital assets in Israel and might affect future legislative approaches toward stablecoins. Crypto Law In Israel Source: Pixabay Over the years, Israel has taken several significant steps toward institutionalizing the norms of regulating cryptocurrency. Israeli legislation lagged behind the development of cryptocurrency, even as blockchain technology started to achieve broad recognition among the country’s tech-savvy community. The beginning of this change came in 2016, with a ruling by Israel’s Capital Market Authority (CMA), the regulator in charge of the country’s savings and insurance, highlighting the essence of a license for prospective brokers or custodians of virtual currencies, meaning a license is required. While the framework was established in 2016, the first license for a cryptocurrency was issued just this September. Four licenses have since been issued, showing increased regulatory capacity. The process eliminated the need for self-regulation that crypto companies had initially reverted to because of the absence of formal oversight. The policy report of the Ministry of Finance identifies the completion of the licensing process of Digital Asset Service Providers (DASPs) and recommends removing barriers within the current regime that would better allow integration between the crypto market and Israel’s banking infrastructure. Apart from the CMA, other regulators in Israel, such as the Israeli Securities Authority (ISA) and the Bank of Israel (BOI), are involved in the crypto sphere. For instance, the ISA plays a significant role regarding security token regulation and is very active in the promotion of necessary legislative adjustments to further improve the regulation of digital assets. This wider regulation includes those activities that would normally fall under the purview of the ISA, such as fund management and advisory services, but also extends to trading platforms that operate in digital assets. Conventionally, banks in Israel have shown wariness in accepting deposits from cryptocurrency transactions due to perceived risks in AML compliance. In response, the BOI’s imposition of new policies—such as Directive 411—seeks to standardize how banks conduct risk management when it comes to virtual currency transactions. This compels banks to develop internal policies as to how they can handle risks involving virtual assets without broadly declining services. In November 2021, Israel’s Money Laundering and Terror Financing Prohibition Authority developed comprehensive regulations that put the AML standard of Israel at par with global best practices. The regulations introduced strict KYC requirements, blacklist usage, and reporting mechanisms for the deterrence of financial crimes interlinked with digital assets. These are the regulations that, if adhered to, would further ensure a safer market and help in gaining confidence from more conservative financial institutions for crypto companies operating in Israel. Taxation of Cryptocurrency in Israel Source: Pixabay Israel has developed a clear but complex system of taxation for digital currencies. This goes to show that investors and businesses alike need to be more informed about regulatory environment implications on taxes. ITA has gone to great lengths to establish guidelines that classify cryptocurrency as an asset, which can lead to several transactions falling under the umbrella of capital gains tax and, under certain conditions, income tax as well. The ITA treats the said cryptocurrency transactions as capital in nature through its Income Tax Circular 05/2018; therefore, gains from the sale of any form of digital currency, including Bitcoin, should be considered capital in nature. The term ‘capital in nature’ suggests that every disposition of cryptocurrency—such as sale and exchange—should be a taxable event wherein gains are measured for capital gains tax purposes. This means that individuals have to account for and pay income against gains every time they make a sale or trade concerning their digital assets. For businesses, the taxation framework is far more complex. Many of the business crypto-related transactions are classified as ordinary income from a business, thereby becoming subject to an income tax rate rather than lower capital gains rates. This is especially important for entities that are active traders, crypto miners or offer cryptocurrency services. This means that organizations dealing with crypto have to observe increased administrative and reporting duties with respect to taxes, which is complex in itself and requires very detailed financial planning. In this regard, the ITA has identified what makes cryptocurrency so unique and may make taxpayers’ compliance difficult. To this end, the ITA promulgated the “Temporary Procedure for Accepting Tax Payments from Profits on the Realization of Decentralized Payment Methods” on December 23, 2023. This procedure
Guyana
The Current Status of Crypto Adoption in Guyana Source: Pixabay Guyana, a small country on the northern coast of South America, seems to be heading into an economic transformation, putting it into the spotlight for global investors. According to the IMF, the country’s economy surged by a record 62.3 percent in 2022, and this boom is highly attributed to the sudden discovery of massive offshore oil reserves, which took in unprecedented revenues and huge foreign investments. But all this new wealth also brings challenges and opportunities, particularly with regard to financial inclusion and digital innovation, to which cryptocurrency could, in theory at least, make a game-changing contribution. While the GDP figures look impressive, the country has still maintained high rates of poverty, given that about a third of its population lives below the poverty line. A survey by Statista showed that the average revenue per user, that is the amount spent per Guyanese, is estimated to be US$7.4 in 2024, a rate much lower than in countries with leading digital economies. The population is relatively small, at about 810,000, and there are limited digital infrastructures within its borders, contributing to low crypto adoption rates. Because there is no explicit prohibition, some analysts have considered this an implicit ban as the government has yet to license any crypto trading platforms. There are also no formal mechanisms for crypto exchanges or financial service providers to legally operate. With increased public investment and other poverty-reduction initiatives by government agencies, financial independence is gradually spreading. This might provide more grounds for cryptocurrency to take hold, as it opens alternative avenues for citizens to store wealth, send remittances, and engage in the digital economy. The IMF, in turn, has pointed out several times the potential of cryptocurrency in enabling financial inclusion, particularly in developing countries like Guyana that do not have universal access to bank infrastructure. Crypto Law In Guyana Source: Pixabay Cryptocurrency, at least for the time being in Guyana, falls within a regulatory gray area. Digital assets are neither taken as legal tender nor banned; they fall under a quasi-legal status that has both attracted and discouraged investors. Unlike countries that have drawn up clear legal frameworks for their use, Guyana itself has not instituted any laws for the use, trading, and taxation of digital assets. While the central bank of Guyana, the Bank of Guyana, has issued advisories about risks related to crypto investment, it has not taken any restrictive measures. Though there is an increasing use of digital financial services in Guyana, the country has never made crypto regulation a focus. All this could be generally because the use of crypto is underdeveloped in Guyana and somewhat complex to regulate. An article in January 2024 highlighted that the government has so far not licensed any crypto trading platforms and has no formal pathway for a company to be recognized as a crypto entity in Guyana. It is, in fact, this lack of regulation that makes some people create a perception of an implicit ban on crypto. This perception has been further amplified by a number of high-profile cases related to alleged crypto-related Ponzi schemes, such as the Accelerated Capital Firm case, where principals attempted to repay clients in cryptocurrency, and this move has been openly criticized by the Attorney General. As Guyana embarks on a new era of economic history, pretty much driven by big oil revenues, the increasing need to address modern financial systems, such as the taxation of cryptocurrencies, is becoming more pertinent. According to the 2023 Money Laundering/Terrorist Financing Risk Assessment done by Guyana’s AML/CFT National Coordination Committee, cryptocurrency poses the following risks—money laundering and terrorist financing, coupled with the potential for tax evasion. However, this rapid economic growth driven by oil wealth may hasten the building of a regulatory framework for digital assets. Their government has already taken steps to manage risks from the newfound affluence with attempts to cool inflation and lower income inequality by means of public investment projects, cash grants, and tax relief targeted at vulnerable groups. Taxation of Cryptocurrency in Guyana Source: Pixabay Guyana’s present approach to cryptocurrency lacks a taxation framework. Several reports showed that Guyana has failed to license any virtual asset service providers within its jurisdiction. In addition, no officially recognized crypto regulations make it difficult for agencies such as the Guyana Revenue Authority (GRA) to determine and collect taxes on virtual currency transactions. “The mission of the Guyana Revenue Authority is to promote compliance with Guyana’s Tax, Trade, and Border Laws and regulations, through education, quality service, and responsible enforcement programs, thereby contributing to the economic wellbeing of the people of Guyana.” — The Guyana Revenue Authority (GRA) Moreso, there is no specific guidance from the Guyana Revenue Authority concerning crypto assets with regard to tax. While other countries automatically apply capital gains taxes to the trading of cryptocurrencies as with other asset classes, a lack of explicit laws and regulations has caused confusion among potential crypto investors in Guyana. The GRA’s website only describes the traditional capital gains taxes but does not mention anything concerning digital assets, thereby leaving citizens confused. A clear taxation system on cryptocurrency will achieve immense success results as it provides revenue to the government and clears the air for persons and businesses operating crypto transactions. If Guyana continues with these positive trends, the formulation of a tax code on cryptocurrency might be one of the initial steps to comprehensive crypto legislation. Factors Driving Crypto Adoption in Guyana Source: Pixabay Even though crypto is not yet adopted by mainstream civilization, the rapid economic growth brings an entirely new set of potential opportunities. Some key factors that propel cryptocurrency adoption in Guyana include: Economic Growth and Diversification Guyana has witnessed unprecedented economic growth. An economic boom with increasing economic returns put more and more disposable incomes in the hands of Guyanese. New wealth means a growing desire for investments, such as cryptocurrency, other than those available in traditional assets. The need to move out of