15 countries where Bitcoin is legal and illegal

In this article, we will take a look at 15 countries where bitcoin is legal and illegal. Go to for more countries 5 countries where Bitcoin is legal and illegal.

2022 was a tough year for businesses, hedge funds and the stock market, but not all of them suffered as much as the cryptocurrency sector. Cryptocurrencies, once heralded as the end of traditional fiat money, took a hit this year as rising interest rates and sour economic sentiment prompted investors to flee the highly speculative market to safe-haven investments such as the US dollar and bonds. As an example, Bitcoin, the world’s leading cryptocurrency, is down 65% year-to-date as it approaches pre-pandemic crypto storm levels that saw capital flow into it as a result of falling stock markets and stimulus checks.

At the same time, as cryptocurrencies have grown, there has been a global push for governments to allow businesses to accept them as a payment method and even legal tender. However, the government’s warnings about the risk of cryptocurrencies were also confirmed last month when the collapse of cryptocurrency exchange FTX Trading Ltd. caused billions of dollars in losses for its clients. The Securities and Exchange Commission’s (SEC) charges against the firm’s founder and former CEO Sam Bankman-Fried initially appeared to be an “honest mistake,” but claims otherwise. According to the Reuters news agency, the main cause of FTX’s collapse was alleged changes to its algorithm by Bankman-Fried and his associates, which allowed the exchange’s partner, hedge fund Alameda Research, to borrow from it to make speculative investments in Alameda’s investments and its investments. allows you to continue. the value of the collateral has decreased. The vicious cycle that bankrupted the firm began when Alameda’s FTT tokens issued by FTX lost value after Coinbase sold its holdings. This undermined consumer confidence in FTX and led to massive withdrawals of consumer funds. However, FTX was unable to cough up the cash as it lent that money to Alameda for investments, leading to its demise.

The collapse of FTX also took the wind out of Bitcoin. After falling from this year’s peak of ~$47,000 to ~$20,000, the currency will soon take another hit, as most analysts assume it costs about the same to mine a Bitcoin. The drama began on November 6 after Coinbase announced its decision to sell its FTT holdings. Over the next three days, FTX’s clients fled, and Bitcoin fell from $20,905 to $15,757 – the level it was in November 2022 – effectively erasing two years of gains and profits for anyone who entered the trade during that time. Since that fateful day, the currency has gained less than a thousand dollars, with Bitcoin currently worth $16,456 at the time of writing (see the best bitcoin stocks to buy).

15 countries where Bitcoin is legal and illegal


Our methodology

For this piece, we’ve divided countries into two groups—those where Bitcoin is implicitly legal and sometimes legal tender, and those where it’s completely banned. Banned countries are listed first. Furthermore, the legal frameworks of all the countries analyzed for the piece do not distinguish between Bitcoin and other cryptocurrencies, except for countries that make Bitcoin legal tender.

15 countries where Bitcoin is legal and illegal

15. People’s Republic of China

Bitcoin Legal or Illegal: Illegal

The People’s Republic of China is the world’s largest economy by one measure and has been one of the most popular regions for Bitcoin mining companies this decade due to the widespread adoption of the technology. However, prompted to act by the high environmental costs of mining and illegal activity, the Chinese government banned all cryptocurrency transactions in the country in 2021, at which time it banned banks and other institutions from providing services such as clearing and exchanges, and mining in the country. illegal. However, such was the Bitcoin frenzy at the time that the market simply dismissed the announcement and the Bitcoin price continued to rise. While cryptocurrency trading is banned, holding it as an asset is protected under Chinese law, according to a lawyer.

14. State of Qatar

Bitcoin Legal or Illegal: Illegal

The state of Qatar is a West Asian country located in the Middle East. Bitcoin and other cryptocurrencies are completely banned in the country’s Qatar Financial Center (QFC). Qatar says the ban is due to poor compliance with know-your-customer (KYC) and anti-money laundering (AML) regulations. These rules are enforced globally by the Financial Action Task Force (FATF) and require banks and other financial service providers to verify their customer profiles and identify the source of funds they transfer domestically and internationally. In fact, the Central Bank of Qatar warned citizens against working with any unregulated financial firm after CoinMENA, an exchange compliant with Muslim law in the country in May 2022. Qatar is a Muslim country and follows Sharia law.

13. Kingdom of Belgium

Bitcoin Legal or Illegal: Legal

The Kingdom of Belgium is a Northern European country with a relatively high GDP per capita. Cryptocurrencies are not banned by Belgium and there are no significant barriers to mining Bitcoin or others or using them for transactions. However, Bitcoin is not legal tender in the country. Profits from trading Bitcoin and other cryptocurrencies are taxed under Belgian law, and authorities often warn people that they are speculative.

12. Republic of Ireland

Bitcoin Legal or Illegal: Legal

The Republic of Ireland is a high-income sovereign state in Europe and is often criticized for its lax tax laws. There are no bans against Bitcoin or other cryptocurrencies in the country, and the only regulations covering Bitcoin are those that apply throughout the European Union. Bitcoin taxes depend on the nature of the transaction, and rates vary if used regularly or infrequently.

11. New Zealand

Bitcoin Legal or Illegal: Legal

New Zealand is an island nation located in the Pacific Ocean. There is no specific legislation in the country that prohibits the mining or trading of Bitcoin. However, like others, New Zealand taxes cryptocurrency transactions. Exchanges and other businesses must obtain a license from the government before providing services, and taxes are paid to sell Bitcoin if the purpose behind the sale and previous purchase was to sell and not hold the currency.

10. Commonwealth of Australia

Bitcoin Legal or Illegal: Legal

The Commonwealth of Australia is an Ocean country rich in natural resources. There are no laws against mining or trading in Bitcoin or other cryptocurrencies in Australia. However, Bitcoin is not equivalent to money in the country. Instead, the law treats Bitcoin as a held asset, and for companies this includes taxation if the Bitcoin is part of day-to-day operations or is acquired with the intention of making a profit.

9. The Netherlands

Bitcoin Legal or Illegal: Legal

The Netherlands is a Northern European country, one of the most prosperous regions in the world. The country does not have specific laws to regulate cryptocurrency, and Bitcoin, among others, must follow the same regulatory framework as other financial products in general. The Dutch government also requires Bitcoins to be disclosed in annual tax returns and subject to capital gains tax. In addition, companies must convert cryptocurrency payments into Euros and declare them in their income statement.

8. Swiss Confederation

Bitcoin Legal or Illegal: Legal

The Swiss Confederation, more commonly known as Switzerland, is a landlocked European country with a high standard of living. Cryptocurrencies are classified as intangible assets under Swiss law, are not legal tender and have no special laws against pearls. At the individual level, Switzerland does not tax any capital gains on cryptocurrencies. However, in order to calculate taxes, they must be converted into Swiss Francs at the year-end exchange rate provided by the government.

7. Federal Republic of Germany

Bitcoin Legal or Illegal: Legal

The Federal Republic of Germany is a European country with the largest economy on the continent. Germany requires companies to be licensed to deal in Bitcoin, and its regulators have called for a global framework for dealing with cryptocurrencies as prices fall globally and more ties are established with established financial institutions. Germany also treats Bitcoin as private money, and banks in the country can also hold and sell Bitcoin.

6. United Kingdom of Great Britain and Northern Ireland

Bitcoin Legal or Illegal: Legal

The United Kingdom of Great Britain and Northern Ireland is an offshore European country. The country does not have a specific regulatory framework for Bitcoin, and purchases and sales of cryptocurrencies by individuals are subject to capital gains tax, which must be paid on any overseas income. Bitcoin taxation in the UK for corporations depends on the nature of the transactions and whether they form part of day-to-day operations.

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Disclosure: None. 15 countries where Bitcoin is legal and illegal was originally published on Insider Monkey.

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