While some countries have strict restrictions on owning Bitcoin, others have neglected to divulge a precise set of rules regarding it. So, there is a lot of confusion regarding the legality and it is important to know the same to avoid getting into trouble.
Bitcoin is thriving with increasing use around the world, but it may take decades to replace the money supply.
Countries where Bitcoin is banned:
There are several countries that have completely banned the use of bitcoin for various reasons.
Here are the 9 countries:
- Bangladesh has completely banned Bitcoin and other cryptocurrencies, citing money laundering risks, claiming they are unauthorized by Bangladeshi banks.
- Nepal’s central bank does not recognize Bitcoin as legal currency, thus banning it completely.
- Algeria has banned all cryptocurrencies, saying there is nothing physical to back them.
- Bolivia has banned cryptocurrencies on the grounds that they are unregulated.
- Ghana has made cryptocurrencies illegal.
- The Dominican Republic has banned cryptocurrencies because they are not legal tender.
- In addition to citing the possibility of financial crimes, Qatar does not support the government and does not allow the use of cryptocurrencies.
- The Republic of Macedonia does not allow the use of cryptocurrencies.
- Bitcoin news linked to Vanuatu claimed it was offering citizenship in exchange for Bitcoin, but authorities denied this. Cryptocurrency is also illegal here.
Countries where Bitcoin is legally restricted:
There are several countries that require a license or do not allow payment via cryptocurrencies; although not a complete ban.
Here are these countries:
- Saudi Arabian banks are banned from participating in cryptocurrency exchanges.
- Bahrain has restricted the use of cryptocurrencies by imposing licenses.
- China’s regulations restrict the use of cryptocurrencies.
- Hong Kong has imposed restrictions on both exchanges and ICOs (Initial Coin Offerings).
- Russia has legalized cryptocurrency, but with certain restrictions. However, cryptocurrency cannot be used for payments.
- Iran does not allow financial institutions to deal with cryptocurrency.
- Turkey does not allow cryptocurrencies as financial assets or payment instruments.
- Vietnam allows the holding and trading of cryptocurrencies, although Bitcoin is still banned.
- Kazakhstan has banned cryptocurrency mining and exchange.
Countries where Bitcoin is legal:
Almost 111 countries around the world have legalized or are about to legalize cryptocurrencies and see them as a potential future.
Here are some of these Bitcoin-friendly countries:
- Australia legalized cryptocurrencies in 2017 and taxes them.
- Antigua and Barbuda may legalize cryptocurrency to pay citizenship fee.
- Finland has legalized cryptocurrency and considers it a virtual currency.
- Germany has legalized the buying and selling of cryptocurrencies if they come from a licensed organization.
- Indonesia legalized cryptocurrency in 2019, but it is still treated as a commodity when trading.
- Italy recognizes cryptocurrency as a virtual currency and imposes taxes.
- Ireland also considers crypto as its virtual currency.
- Marshall Island’s legal currency is SOV powered by blockchain technology.
- New Zealand compares cryptocurrency to gold and also imposes a tax.
- Norway considers cryptocurrency an asset.
- Sweden allows and taxes Bitcoin trading.
- Uzbekistan has legalized cryptocurrency, but requires a license.
- Venezuela legalized cryptocurrency activity after banning it in 2018.
- The US taxes cryptocurrencies.
- Japan considers income from cryptocurrency as miscellaneous income.
- Chile has secured protection for cryptocurrency exchanges.
- The United Arab Emirates has its own Emirates Blockchain Technology to move its core transactions to the blockchain. Hence, becoming a government powered by blockchain.
- Estonia does not consider cryptocurrency as legal tender, but it is considered a virtual currency.
Country where crypto is legal tender:
El Salvador: It is the only country that recognizes Bitcoin as legal tender. Before this act, it was known as the investor’s risk. Bitcoin investors should rejoice. Bitcoin is a big event that deserves all the press it gets as legal tender in any country. If more and more countries start accepting Bitcoin in the future, this step of El Salvador could be a significant precedent in history.
Regardless of the myths surrounding cryptocurrency, governments are moving to legalize cryptocurrencies. Many countries are in the process of analyzing and researching it.
The content provided may contain the personal opinion of the author and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication assumes no responsibility for personal financial loss.