Legal aspects of crypto investments

The legal regime of cryptocurrency, in particular Bitcoin, varies considerably in different countries. In a number of countries, operations with cryptocurrencies are officially authorized. Usually they are treated as a commodity or investment asset and for tax purposes are subject to the relevant legislation. Sometimes Bitcoin is recognized as a settlement currency (for example, in Germany and Japan). In other countries (for example, in China), operations with digital assets are prohibited for banks, but allowed for individuals, while China is the leader in the field of mining due to the presence of the greatest production capacity. In Switzerland, cryptocurrencies are subject to the same rules as foreign currencies, and this country is one of the most favorable jurisdictions for Bitcoin startups and public blockchains. There are no restrictions on the use of Bitcoin in Russia for 2017.

European Union
On October 22, 2015, the European Court of Justice ruled that exchanging bitcoins for fiat currencies is exempt from VAT. The court decision states that the VAT law applies to the supply of goods and the provision of services. Transactions in bitcoins were classified as payment transactions with currencies, coins and banknotes, and therefore are not subject to VAT. The court recommended that all EU member countries exclude cryptocurrencies from the number of assets subject to taxation.

Germany
At the end of August 2013, the Ministry of Finance of Germany made a statement that Bitcoin could not be classified as electronic or foreign currency, but rather the definition of private money, through which multilateral clearing operations can be performed.

Thailand
According to the company from Bangkok, Bitcoin Co. Ltd., the Bank of Thailand, although it did not recognize Bitcoin as an independent currency, but stated that a transaction is required for operations with it for the right to conduct currency exchange operations, refusing to issue it. Since July 29, 2013, the company has suspended its exchange service. The company’s website, citing a representative of the Bank of Thailand, declares that “due to the absence of legal grounds, it is illegal to buy / sell bitcoins, buy / sell any goods or services in exchange for bitcoins, send bitcoins from outside or outside of Thailand Thailand."

China
On December 5, 2013, the People’s Bank of China banned Chinese financial companies from trading with bitcoins. The statement stated that Bitcoin is not a currency in the real sense of the word. Financial companies are prohibited not only direct bitcoin operations, but also the publication of quotations or insurance of financial products related to bitcoin. At the same time, individuals are free to participate in online transactions at their own risk and peril. Bitcoin is considered as a commodity, but not cash.

USA
In the official reports of the World Bank and the FBI, bitcoin is considered a “virtual currency”. According to the classification of the Financial Crimes Commission (FinCEN) under the US Treasury, bitcoin is referred to as "decentralized virtual currencies." In the fall of 2017, the Securities and Exchange Commission in the USA (SEC) initiated the first ever case of fraud in the primary placement of cryptocurrency (ICO).

Israel
The official position of Israel in relation to Bitcoin - it can not be a means of payment. At the beginning of 2017, the cryptocurrency was equated to the property, the sale of which the owner is obliged to pay VAT and income tax.

Other countries
In some countries, for example, in France and India, there has not yet been a formal decision on the regulation and legal regime of cryptocurrencies, however, regulators have made statements that they are trying to develop a position on cryptocurrencies, and warn potential users about the high risks of investing in cryptocurrencies due to high volatility. The French Central Bank believes that even professional traders should be careful - Bitcoin convertibility is not guaranteed, the bitcoin holder is unlikely to be able to go to court in the event of theft or fraud.

Despite cryptocurrencies, countries also trying to control ICO, as there are lots of scams now. However, there are still projects, which have potential. Open Packaging Network is the example of such platform. It is a blockchain-based project whose goal is to provide transparency in the packaging industry by creating a platform that uses technology to provide value to industry stakeholders. This creates a platform for seamless, transparent interaction between buyers and sellers, effectively combining all the verticals involved in the filling business in a market where demand meets supply and vice versa. The project aims to become a public digital book for the filling industry, in which the parties demonstrate transparency and trust due to the integrity of the system. This guarantees the sellers of seriously interested buyers, better payment terms, reliable demand forecasts and good prices for their products, while buyers are guaranteed high quality materials delivered in good conditions and on time.