UnitedStates

Top 5 Countries with the Highest Crypto Investors

The technology behind blockchain and cryptocurrency is built on a trustless platform. Hence it is a web transaction that cannot be traced, and we cannot know the exact amount of investment that individuals have. Most people believe the amount of crypto coins available today is a hoarse. They believe that cryptocurrency funds, exchange and mining firms play the role of whales in the industry, capitalizing on the trustless platform of the technology and using it to control small investors.
While there are whales in some cryptocurrency projects, it is not true that exchanges and mining firms play the role of whales in the market. And what better way to know than to check their user base data. Most of these exchange and mining firms have data like country and IP address of their customers. And from these data, one can conclude that through the collective investment in cryptocurrency by residents of different countries, they have placed these countries on the map. Even though cryptocurrency still have a long way to go in terms of global acceptance, one cannot deny that these investors are have contributed to the level that we are in today. I have taken my time to write about the top 5 of these countries.

The United States

The United States is home to a lot of cryptocurrency exchanges, mining firms, trading platforms and blockchain oriented companies. It is also the number one country on the global scale of the installation of Bitcoin ATMs with over two thousand (2,000) Bitcoin ATMs installed as at December 2018. All these activities and endeavors could only mean one thing, the American population accepts cryptocurrency. Well, it depends on what we mean by population though, because only 8% of the American population is said to be holders of Bitcoin alone. This of course is a big deal, considering the population of Uncle Sam’s country.

China

If there is anything on cryptocurrency that China has been in the news for, it is the constant crackdown on cryptocurrency activities. But that is just the story of the Government of the people of China as the country is still one of the leading countries in terms of digital currency trading. It some of the world’s leading exchanges and the citizens in this country are known for their mining activities. It is generally believed that most Chinese miners tend to move their residential houses and offices closer to power plants because it is cheaper in terms of cost to mine cryptos. Also, recent trends reveals that Chinese government are working on various blockchain technologies, one cannot tell if the crackdown will continue, but the investors will definitely reduce if it does.

Romania

Romania is home to numerous programmers and developers who are mostly freelancers. It also plays host to many firms and businesses that are big players in the IT industry. It therefore won’t come as a surprise to anyone that it has a lot of investors. About 12% of the residents of Romania are said to be holders of at least one cryptocurrency, and guess which cryptocurrency is the most important… Bitcoin.

South Korea

South Korea is the second Asia country on this list. Unlike China, the government of South Korea is not hostile towards cryptocurrency. Most people say that the crackdown of China on cryptocurrency caused the drift of investors from the country to South Korea. South Korea is a country with eyes for the technological company, hence it plays host to lots of exchanges and cryptocurrency businesses. Most of the exchanges in South Korea are restricted to the country alone, this means that there are enough investors. As always, Bitcoin is number one on the list of the most held cryptocurrency in this coutry.

Japan

There is a large number of acceptances of cryptocurrency in Japan. It is one of the few countries that has recognize cryptocurrencies as an institutionalized means of payment. This has in some ways increased the number of investors in this country as there is little or no restrictions that stops them from engaging in cryptocurrency market transaction within and outside the country. The exchanges in Japan are known for the swiftness in which they process transactions.

Is US fair towards Cryptocurrency?

United States, as the home of Silicon Valley does not just boast only as the capital of tech companies. It also has one of the strongest and outstanding cryptocurrency and blockchain friendly states, having Bitcoin ATMs in virtually every corner of the cities. So far, the government of the United States is yet to exercise any constitutional power to regulate cryptocurrencies and blockchain technologies. Thus, it an left as an exclusion of states within the country. This means that states are at liberty to set their own regulation. For example, the state of Arizona in 2017 passed the Arizona House Bill 2417 to regulate blockchains and smart contracts. Vermont also passed a bill to recognize the admission of data that was embedded on the blockchain network as evidence in court. This was done without the need for verification. Some of the most friendly cryptocurrency states in terms of policies and regulations are Tennessee, Kansas, South Carolina, Texas and Montana. However, the government of the United States remains skeptical on the financial instability that is posed by the decentralization of the technology. But it has given leverage to its 50 states to come up with their own laws and policies concerning cryptocurrency and blockchain technology. One can only but wonder if the United States has been fair to cryptocurrency.

On US Cryptocurrency Regulation and Regulators

In 2013, a bureau of the Treasury Department of the United States (FinCen) declared that virtual currencies do have legal tender status in any jurisdiction. This has not however birthed hostile policies geared towards the technology as the residents of the country controls the second largest volume of Bitcoin in the world, holding at 26%. Regulatory bodies in the United States have several definitions for cryptocurrency.
The Security and Exchange Commission (SEC) for example views cryptocurrency as a security. It has continued to scrutinize the lack of security laws guiding the currency though. But in 2018, their main focus was on initial coin offerings. The rate at which coin offerings were being released was so alarming that they had to step into the scene, stepping up efforts to make policies to make coin offerings more secured. SEC has the power to regulate securities, derivatives based on securities as well as their markets. The first issue recorded of whether investments in cryptocurrencies – Bitcoin to be précised – are to be considered as securities is resolved. In the resolution, federal and state courts (SEC v. Shavers) held that such investments are to be considered as securities and therefore relevant, whether they are purchased with fiat currency or cryptocurrency. The Commodity Futures Trading Commision (CFTC) views Bitcoin as a commodity. Christopher Giancarlo who is the commissioner of CFTC is known to be a crypto friendly regulator. He is a known crypto evangelist, advocating for friendly policies geared towards the advancement of cryptocurrency.

On Taxation

The Internal Revenue Service (IRS) sees cryptocurrency, not as a currency but as a property. In 2014, it released an issued guidance on the difficulties involved in taxing the digital currency, and then it proposed ways in which it should be taxed. According to the IRS, the use of digital currency is somewhat a realization event. And the amount realized is the market value of the property received.
Also, on the sale of digital currency, there is either a taxable gain or loss. This is determined by subtracting the basis of the seller from the amount gotten from any sale. This characterization of the gain or loss is rooted on whether the seller is an holder of the digital currency as a capital asset, or if the investor is involved in a business where he holds the digital currency as inventory or any other property. Miners of cryptocurrencies are required to make known the true market value of the digital currencies that they mined, with regards to date of receipt of their respective gross income. Also, a miner who works for a mining company as an employee is required to pay self-employment tax on their net earnings.
So there you have it. In my opinion, I will say the United State has been fair towards cryptocurrency. Most of the policies surrounding the digital currency in the country were founded on facts that can be proven.