Virtual currency is also known as a digital currency which is a form of money that can only be used electronically and is decentralized in nature. This type of money is majorly used as a form of payment online since it is accepted by some companies. Reviews about different companies that accept virtual money as payment can be found in OmdömesStälle.
Because it is not regulated and is decentralized, many countries that have legalized virtual currencies as a form of payment have therefore put in some regulations to prevent theft and scams. In Sweden, a lot of rules and regulations have been created to regulate the usage of virtual currencies, and they are:
- SCEA Amendments:
SCEA whose full meaning is Sweden Currency Exchange Act was established in the year 2020 on 1st January and the act requires all financial institutions to avoid all activities that will lead to or are related to money laundering. This bill also includes the providers of wallets and virtual currencies.
This law is very strict compared to its counterparts such as the AML regulations. Because of the definition that was given to virtual currency by the Swedish government, cryptocurrency such as Bitcoin and Ethereum and crypto services such as Bitcoin code is also included in this act.
- MIFID II:
Virtual currencies such as cryptocurrency fall under this law which regulates the financial market and proposes that financial establishments are legally allowed to carry out their business activities. This bill is only applicable to virtual currencies whose security can be transferred to another electronic device. The breakdown of this law leads to stiff penalties for those who break it.
- Payment Service Regulations:
This law in Sweden states that the government cannot use virtual currencies as a form of payment method in its civil service. This means that virtual currencies cannot be used as salaries to pay the country workers. This regulation is necessary to prevent scandalous establishments from exploiting and scamming their citizens.
Although virtual currencies cannot be seen as unlike physical cash, the central bank of Sweden has admitted that virtual currency is a form of an asset and is considered a taxable financial resource. It is this regulation that compels Swedish citizens to present all their transaction history of virtual currency to the tax agency. The price and date of the transactions are included when presenting the transaction details to the tax agency.
- Banking and Transmission Regulation Law:
When it comes to virtual currencies, there are regulations since it is not considered a general payment method. According to the Swedish banking legislature, virtual currencies can only be accepted as a general payment method when there is massive acceptance by its citizens. This means that in the bank, you cannot pay or accept payments with virtual currencies.
Over the years, a lot of virtual currencies have been coming into the limelight such as utility tokens, investment tokens and Cryptocurrency. In order to safeguard their citizens, countries such as Sweden have laws that regulate the usage of virtual currencies.
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