While some countries have put on strict restrictions on the possession of Bitcoin, others have not cared to put out a clear set of rules on the same. Thus, there is massive confusion about the legality, and knowing about the same is important to not land up in trouble.
Bitcoin has been evolving with the increase in use all around the globe, however, it might take several decades to replace the supply of money.
Countries In Which Bitcoin Is Banned:
There are several countries that have banned the use of Bitcoin completely citing different reasons.
Here are the 9 countries:
- Bangladesh has completely banned Bitcoin as well as any other cryptocurrency claiming that it is unauthorized by Bangladesh banks keeping in mind the risks of money laundering.
- Nepal’s central bank doesn’t recognize Bitcoin as a legal currency, hence, banning it completely.
- Algeria had banned all cryptocurrencies saying that they have nothing physical to back them up with.
- Bolivia has banned cryptocurrencies citing their unregulated nature.
- Ghana has made cryptocurrencies illegal.
- The Dominican Republic has banned cryptocurrencies on grounds of it not being legal tender.
- Qatar doesn’t have support from the government as well as citing the possibility of financial crimes, it doesn’t allow the use of cryptocurrencies.
- The Republic of Macedonia doesn’t allow the use of cryptocurrencies.
- Vanuatu-related Bitcoin news broke out claiming that it gives citizenship in exchange for Bitcoin, however, the authorities denied it. Cryptocurrency is illegal here as well.
Countries In Which Bitcoin Is Legally Restricted:
There are several countries that require a license or don’t allow payment through cryptocurrencies; although not completely put a ban on it.
Here are these countries:
- Saudi Arabia’s banks are banned to participate in cryptocurrency exchange.
- Bahrain has restricted the use of cryptocurrencies by putting licenses in place.
- China’s rules restrict the use of cryptocurrencies.
- Hong Kong has put restrictions on exchanges as well as on ICOs ( Initial Coin Offerings).
- Russia has legalized cryptocurrency but with certain restrictions. However, crypto cannot be used for doing payments.
- Iran doesn’t allow its financial institutions to handle cryptocurrency.
- Turkey doesn’t allow crypto as financial assets or payment tools.
- Vietnam allows the possession and trade of crypto, although Bitcoin is still prohibited.
- Kazakhstan has banned mining and exchange of cryptocurrency.
Countries In Which Bitcoin Is Legal:
Almost 111 countries in the world are about to or have legalized cryptocurrencies and see them as a potential future.
Here are some of these countries that are Bitcoin-friendly:
- Australia legalized cryptocurrencies way back in 2017 and charges taxes as well.
- Antigua and Barbuda may legalize cryptocurrency to pay for citizenship.
- Finland has legalized crypto and considers it as a virtual currency.
- Germany has legalized buying, selling, and trading of cryptocurrencies if they come from a licensed organization.
- Indonesia legalized cryptocurrency in 2019, however, it is treated as a commodity while trading.
- Italy recognizes crypto as a virtual currency and imposes taxes.
- Ireland also considers crypto as its virtual currency.
- Marshall Island’s legal currency is SOV, which is powered by blockchain technology.
- Newzealand weighs cryptocurrency against gold and imposes tax as well.
- Norway considers cryptocurrency as an asset.
- Sweden allows trading in Bitcoin, and charges tax.
- Uzbekistan has legalized crypto but requires licensing.
- Venezuela has legalized crypto activities, after banning them in 2018.
- The United States charges tax on cryptocurrencies.
- Japan considers income from cryptocurrency as miscellaneous income.
- Chile has provided protection for cryptocurrency exchanges.
- The United Arab Emirates has its own Emirates Blockchain Technology to move its major transactions to the blockchain. Thus, becoming a government powered by blockchain.
- Estonia does not consider crypto as legal tender but it is considered as a virtual currency.
Country In Which Crypto Is A Legal Tender:
El Salvador: This is the only country so far that recognizes Bitcoin as a legal tender. Before this action, it was recognized as an investor’s risk. Bitcoin investors should rejoice. Bitcoin as a legal tender in any country is a huge event that deserves all the press it gets. El Salvador’s move could be a remarkable precedent in history if more and more countries start accepting Bitcoin in the future.
Regardless of the myths related to cryptocurrency, governments are moving forward to legalize cryptocurrencies. Many countries are in the process of analyzing and researching the same.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.