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Sweden
6.93 Rather Enabling Environment
Sweden is one of the global leaders of the world Bitcoin market. The customer base of the first Swedish Bitcoin exchange BTCX showed an impressive growth of 1,000 people per month in 2017. Sweden is a popular country for mining because of a cool climate and low electricity rates.

In 2014 the Swedish Financial Supervisory Authority (Finansinspektionen) has made the determination that bitcoins are subject to its authority, as trade in bitcoins (i.e., offering a site where bitcoins can be bought and sold similar to an exchange) is other financial activity (not currency exchange) (annan finansiell verksamhet) and thus subject to mandatory reporting requirements.
In 2015 the case of the European Court of Justice regarding VAT on bitcoin started with the application of a Swedish national David Hedqvist.

The Swedish Financial Supervisory Authority (FSA – Finansinspektionen) issued a statement in November 2017 regarding the regulation of ICOs and highlighted some of the risks associated with investment in ICOs, which are primarily related to the lack of appropriate regulation. The FSA emphasizes that the ICO projects of "most ICO campaigns are unregulated" and, therefore, are not controlled by the state authorities; at the same time, the regulator warns that "there are no guarantees that a token or cryptocurrency entitles its holder to make claims against the issuer."

The fact that only 15 % of payments were made in case in 2016 (official info of Central Bank) prompted the local authorities to start discussing the release of their own official E-krona digital currency, as announced by the Riksbank in 2016.

In February 2018 Sweden took the initiative to propose an intergovernmental agreement in the Economic and Finance Council of the EU aimed at international regulation of Bitcoin and other cryptocurrencies under the auspices of the UN and the World Bank.
Neutral Political Environment
5.0 points
Swedish regulators are quite restrained about cryptocurrencies and the blockchain technology. On the one hand, they are afraid of excessive regulation of the sector, and on the other hand, they are aware of the risks and threats that cryptocurrencies carry. In Sweden, the introduction of the nation's own cryptocurrency is quite seriously discussed due to the specific unpopularity of cash among Swedish residents.

The Swedish authorities are outspoken supporters of international regulation in the field of cryptocurrency under the auspices of the UN, including the rejection of national norms and practices in favor of future international standards, as evidenced by the proposal of Sweden in the Economic and Financial Affairs Council of the European Union.
Rather Enabling Legal Environment
6.24 points
Regulatory Convergence
Sweden is missing comprehensive legislation specifically designed to regulate the blockchain and cryptocurrencies. Individual reports, statements and preliminary judgments are formulated by a number of agencies, including the Riksbank, the Financial Supervisory Authority (FSA, Finansinspektionen) and the Swedish Tax Agency (Skatteverket), but these explanations are not exhaustive. At the same time, at the moment, the legal positions of the agencies do not cause serious contradictions.

Definiteness of Legal Regulation
Sweden does not have any specific regulation that deals with cryptocurrencies. A number of agencies have issued statements, reports, and preliminary judgements on how they interpret cryptocurrencies and how such currencies relate to Swedish law. The Riksbank and FSA do not define the cryptocurrency as a currency. The Swedish Financial Supervisory Authority (Finansinspektionen) only stated that Bitcoin is subject to its regulation, since cryptocurrency trading is categorized as "other financial activity" (annan finansiell verksamhet), which is actually equivalent to the status of a means of payment. Currently there are no specific regulations governing ICOs in Sweden, as it goes beyond the existing laws.

Stability of Legal Regulation
The government is not keen to regulate the crypto sphere. Such organizations as the Riksbank, the Ministry of Finance, and the FSA note high risks for investors in the field of cryptocurrency, primarily because of the high volatility, secondly, because of the lack of guarantees from state bodies. However, the prospects of developing special legislation are not yet visible – representatives of state agencies refrain from making any declarations about their intention to regulate. The Government of Sweden is strongly in favor of international regulation of bitcoin and other cryptocurrencies.

Adequacy of Legal Regulation
In general, the government is not keen to impose strict regulation on the cryptocurrency sector, believing that excessive regulation can only do harm. On the one hand, such a position creates some uncertainties in regulation, and on the other hand, it allows regulators to comply with market requirements for regulation. The blockchain technology sector also enjoys a rather favorable environment and will likely be further regulated within the framework of the European Blockchain Partnership. The blockchain is used at the official level (by the government organization Lantmateriet) and is not subject to criticism from the authorities.
Situation with the Rule of Law
Sweden has high indicators of the rule of law, ranking 4h in the world among 113 countries. The conditions of the legal regulation of blockchain and cryptocurrencies are neutral, and since the values of the sub-criterion of the rule of law are high (0.86), the amount of the difference between weighted (multiplied by Rule of Law Index score) and unweighted assessments are not significant.
Enabling Infrastructure Environment
9.55 points
Sweden ranks 5th in the UN Global E-Government Development Index. Sweden also has high business environment development indicators ranking 10th in the world.