Cryptocurrencies are not government-backed currencies. However, they are now being taxed in the U.S. There are no specific rules or regulations for cryptocurrency as it is still in its infancy stages. Carter said: “You can’t regulate constant creations because anyone can create their own cryptocurrency and say this is mine. That’s what many people have done, and then there are no regulations to stop that. It’s not registered, nor an actual currency backed by anything. So, without the regulations, if an investor loses the money, that’s on them. The government has no authority to step in for fraud.”
Still, countries like Australia and Japan consider cryptocurrencies legal and treat them as property. Switzerland, too considers it legal, and it is also considered a payment form in some contexts. In the EU and Latin America, regulations vary by country. India is considering regulations around it, and there have been discussions to impose a tax on it, whereas China considers it illegal.
Also, when it comes to cryptocurrency being halal in Islamic Finance, there is a spirited debate ongoing between crypto enthusiasts and traditionalists. For now, some rules consider crypto halal while others believe crypto to be haram. It will be interesting to see how that evolves in the future.
Dubai Virtual Assets Regulatory Authority established
Dubai has recently adopted its first crypto law and formed a regulatory body for virtual assets. The Dubai Virtual Assets Regulatory Authority (VARA) has been established and will be working with all related entities to promote security and transparency for crypto investors. VARA will be tasked with regulating the sale of virtual assets and virtual tokens while also being responsible for the regulation and authorising virtual asset service providers. It will also ensure that investors’ data remains secure and safe in the hands of virtual asset service providers.
