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    Victoria O.

    Watchdogs: Is Bitcoin Legal in Sweden?

    The Swedish government supports companies that use blockchain technology and work with digital currencies. This is because the country has almost switched to non-cash payments. In Sweden, less than 10% of payments are made in cash. The COVID-19 pandemic gave an impetus to the growth of the popularity of digital currencies. The coronavirus was another reason for the development of blockchain technology and the use of cryptocurrencies in Sweden. 

    There Are Wonderful Plans for the Weekend: To Write a Couple of New Laws, EH?

    There are no regulations regulating the use of blockchain technology in Sweden. The adoption of such laws is not planned in the short and medium-term, which complicates the process of regulating the activities of crypto companies. 

    The main supervisory authorities in Sweden that influence the work of crypto companies are: 

    • The Financial Supervision Authority (SFSA); 
    • The Swedish Data Protection Agency. 

    A specialized body of the Swedish Financial Control has legalized cryptocurrencies in Sweden as a means of payment. 

    For some companies that interact with the traditional currency, requirements regarding licensing and implementation of requirements have been introduced. Transactions using cryptocurrencies in Sweden are not subject to VAT. 

    In January 2018, the Central Bank of Sweden said that it was considering a proposal to introduce its own cryptocurrency-the digital crown. 

    Bitcoin Legal Status in Sweden 

    Bitcoin was equated to a currency. It is important to note that the income from " bitcoin mining” is considered in Sweden as income from labor, not a business activity. 

    The Minister of Financial Markets of Sweden noted that the authorities are developing stricter requirements for cryptocurrency companies. 

    E-Krona — Europe’s First State-Owned Cryptocurrency Launched in Sweden 

    The Central Bank of Sweden has announced the launch of a testnet with big plans for the future. The new project is called e-Krona, and it is the first state-owned cryptocurrency in Europe.  

    Sweden is a developed country; the financial and innovation spheres clearly demonstrate this. The active policy of transition to electronic payment systems adopted in Europe is particularly pronounced here. 

     In recent years, the Swedes have practically abandoned cash: their role is performed by bank cards and contactless payment services, which account for 80% of all payments in the country.

    It is interesting that this is practiced not only among the population, but also by the banks themselves — many of them have also moved away from traditional formats, and in general, banknotes account for only 1% of the country's GDP. 

    How to Implement the Idea of a State Cryptocurrency?

    Consideration of the possibility of launching such a project began several years ago: all these years, the Central Bank has been looking at the industry and analyzing what is happening. 

    So, the cryptocurrency has already been developed and is currently at the testing stage. It is handled by representatives of Accenture, they are also responsible for monitoring and further development of the project. 

    The pilot launch is expected to last until 2021. Then the e-Krona will be transferred to the use of Swiss banks, and only after that, it will be distributed among the population.

    Not everything is so simple: the representatives of the Bank themselves answer that there are no specific goals for launching to the masses yet. This is a rather serious and responsible decision, and the Central Bank does not have the right to make it independently; therefore, the fate of the project will also be determined by the opinion of citizens. 

    The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research.