Crypto means illegal?

Currently, cryptocurrency culture is at the stage of rapid development. The activity of people in crypto sphere can be relatively divided into two categories:

1) Investors, advisors, miners, blockchain developers and other activities connected with crypto sphere. In this case, crypto sphere is associated with obtaining a certain profit: investors invest in ICO projects and after its completion sell tokens with a margin of hundreds of percent; miners issue crypto currency, as well as with the development of intellectual property: various programs working on the basis of blockchain technology.

A grand field for marketing can be found here as well: PR managers, social media, Ads managers are trying new strategies to drive traffic to crypto sphere and attract advisors. Project advisors are experts of certain crypto communities who attract certain investors as well as promote the project on their social networks: Facebook, Twitter, Telegram, Linkedin, Medium, etc. Team can get professional advice concerning not only marketing but also technical, legal and conceptual components of the project depending on the specialization of advisor. A rating of ICO advisors can be found, for example, on the website icobench.com

2) Fiat users who are not connected with cryptocurrency but have already seen splendid flat lays with Bitcoin cappuccino foam and heard gossips about black economy functioning with crypto.

It's not easy to dispel the negative perception of alternative cryptocurrency at once, but today we are going to clarify the hottest issues of fiat holders.

Then, here are the most popular cryptocurrency myths:

1) Cryptocurrency trade is illegal

 At the moment, more and more countries introduce regulation of cryptocurrency turnover based on two concepts: either treat it as property/asset or as a means of payment (its and its derivatives).

The fastest adaptation of cryptocurrency proceeds in Europe, where the legislation has adjusted faster to modern realities and there is an opportunity in b2b interaction when you can convert fiat funds into cryptocurrency and back at the bank level.

The European Union is a good place for the crypto community, as they most extensively introduce opportunities and benefits for working with cryptocurrency.

In Russia cryptocurrency is treated as a property that can be exchanged for other property. Of course, in legal terms, this means that you cannot exchange it for money (because in this case, it is already a sale).

Considering Asia,  attitude to cryptocurrency is currently ambiguous. For example, on the one hand, in China it is seriously restricted, on the other hand, they own almost the largest share of the market. Japan, on the contrary, seeks to introduce cryptocurrency regulation as quickly as possible so that users feel protected and the state does not lose the possible profit from the control of operations.

The US, due to the complexity of legislation regulation in different states and their tendency of extraterritoriality is not currently clear in the regulation.

However, cryptocurrency, as well as the Internet,  has no boundaries, which makes it possible to choose services that are located in places where operations with are recognized legal at the federal level.

 

2) Cryptocurrency is related to terrorism, violence and illegal trade.

Any fiat currency, especially in the West, is associated with these statements. If you look at the statistics, everything that cannot be tracked is popular in this sphere, including cash as well. If we make a historical review, then, because of the anonymity properties, cryptocurrency was also used for illegal mutual settlements. However, later, when it was considered as a mean of investment and received a wide output beyond the limits of that target audience.

 At the moment, its popularity as a means of payment is still extremely low, but more and more companies, shops and other services  are beginning to implement cryptocurrency in their business.

 

3) Cryptocurrency is not taxed, therefore it can be difficult to keep financial reports.

That is all about jurisdiction - if we consider the Russian Federation, the tax on cryptocurrencies is not paid until it is exchanged for real money. The act of currency exchange will be considered as the receipt of profit, which is taxed.

 In countries where the cryptocurrency is recognized as a means of payment, taxes  must be paid mandatorily. Germany, for example, has intentions to introduce the possibility of paying for social services with  cryptocurrencies.

Based on the all mentioned earlier, it's safe to say that when recording income in fiat you go through all the usual procedures and have all the standard tools for paying taxes in any country.

 

4) Cryptocurrency is difficult to withdraw to cash.

The process of withdrawal of cryptocurrency will not be any difficult than to withdraw shares, electronic money, or to convert funds.

Thus, you need to make an exchange through either offline or online exchanger. In the case of online services, you will likely to pass KYC, as well as while exchanging other currencies.  There are also fast telegram exchangers where you can exchange currency without being interrupted from your favorite movie.

 

5) Business for cryptocurrency is unstable due to significant changes in cryptocurrency rate.

Business for cryptocurrency is not stable if the anchor price is cryptocurrency itself. And this will continue unless the world regulators are introduced, which will ensure the stability of its course. A significant increase in operations with cryptocurrency can be another trigger, therefore even large sales will not be reflected seriously.

If we took it deeply, any currency has some degree of volatility. Currently, the problem with this is solved quite simply on our site: for example, an anchor price is formed, which is more stable, and the cryptocurrency is used as a convenient means of mutual payment, constantly converting into the equivalent of its anchor.

It's always hard to get rid of old habits. Psychologists say it takes 21 days to break up with the addictions. And what is a habit?- Repetition of the same action aimed at obtaining a feeling comparable to comfort. Buying and selling with cryptocurrency are not only comfortable but also profitable.

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