Bitcoin Crypto Considered Legal and Illegal in These Countries

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Bitcoin Crypto: Cryptocurrency has gained rapid momentum in the past few years. Although the initial growth and popularity were slow, it has gained recognition by not just individuals but also businesses. Digital currency is seen as the future of transactions.

One of the most popular cryptocurrencies that have always stayed on top is Bitcoin. As compared to any other cryptocurrency, people put their trust in Bitcoin more. But regulators, governments, enforcement agencies, tax authorities are skeptical. The main concern is how to establish control over the cryptocurrency market considering it is highly volatile.

However, most people who want to invest in Bitcoin are left wondering whether they can legally use Bitcoin. The legality of Bitcoin varies around the world. While some countries have openly embraced cryptocurrency, some haven’t.

If you are also wondering whether you can invest in Bitcoin depending on the country you live in, here is a quick guide just for you. In this post, we will tell you the countries where Bitcoin is legal and illegal.

Bitcoin: Legal in These Countries

  • United States of America

Bitcoin is legal and regulated to a certain extent in the US. The Financial Crimes Enforcement Network (FinCEN) has been the regulatory department for Bitcoin in the country. Since 2013, the network has guided Bitcoin.

Also, any bitcoin transaction is categorized under Money Service Business (MSB). This is yet again under the Bank Services Act by the US Treasury. And if a transaction in cryptocurrency is above $10,000, the purchase is immediately reported.

So, bitcoin is highly regulated in the US and hence completely legal in the country.

  • European Union

All types of cryptocurrencies including Bitcoin are recognized by the EU. However, the EU banking authority has said that cryptocurrency of any kind is not under its regulation. They warn the citizens to be extremely careful while investing or transacting using Bitcoin.

The world of cryptocurrency is certainly moving in a positive direction in the EU. A proposal was finalized by the commission that enlists the legislations to regulate cryptocurrency thus building a road to trust amongst businesses and individuals.

  • Canada

Just like their neighbor the US, Canada also supports and welcomes bitcoin and any transactions made as such. However, cryptocurrency is highly regulated. The currency comes under Canada Revenue Agency (CRA) thus, bringing it under income tax.

Hence, any transaction or income made using cryptocurrency must be reported. Similar to the US, Canada also considers cryptocurrency under Money Services Businesses. This makes it mandatory to be reported to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

  • Australia

Similar to the US and Canada, this country also considers Bitcoin Crypto or any other cryptocurrency as taxable. So, any transaction made using bitcoin needs to be reported. Whether you buy, sell, exchange, gift, or move the cryptocurrency in anyway, it must be reported to concerned departments.

Apart from these major countries, various other countries consider Bitcoin Crypto legal with absolute regulations. Some of these countries are:

  • El Salvador
  • UK
  • Germany
  • France
  • Denmark
  • Japan
  • Mexico
  • Iceland
  • Spain

Bitcoin is Illegal in These Countries

While some countries have welcomed the digital and decentralized currency, several countries haven’t. Several countries around the world fear the misuse of the decentralized currency for illicit activities. Hence, they have put an implicit or total ban on the use of cryptocurrency.

An implicit ban on cryptocurrency is in countries like Bahrain, Maldives, Cameroon, Kuwait, Georgia, Macao, Libya, and more.

There is a complete ban on the use of bitcoin in countries like Bangladesh, China, Qatar, Nepal, Iraq, and more.

Final Takeaway

The world certainly has a biased take on cryptocurrencies like bitcoin. While some countries openly accept it, some don’t. However, several countries have started assigning the concerned authorities to find ways to effectively regulate bitcoin. After all, digital currency is the future of this world!

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