Is Bitcoin Legal?
Bitcoin is the most famous cryptocurrency in the world at the moment. The jump in its popularity has occurred in the last 5 years, although this cryptocurrency was launched in 2008.
However, not all states recognize Bitcoin and allow residents to use it for various transactions. What stops governments from adopting Bitcoin? Of course, this is the inability to control the cryptocurrency, since it is decentralized.
- How is cryptocurrency regulated in different regions?
- Where is Bitcoin legal?
- In which region is this cryptocurrency most used?
The answers to all these questions can be found in this section on Bitcoin legality in online gambling.
Regulations in North America
North America is famous for its innovative approaches to life in various spheres. Here crypto owners feel free except for taxes on their savings. Let us check the situations with cryptocurrency in the USA and Canada in detail.
In the USA, Bitcoin has a completely legal status. This type of crypto is taxed by the US government. Moreover, here everyone can engage in mining because it is not prohibited in the state. This all sounds attractive enough but are the laws and regulations about cryptocurrencies the same in different states of the country?
Since each state has its own internal rules, this also applies to the use of cryptocurrency. Before buying Bitcoin or any other form of it, it is better to read the crypto laws in your state.
Canada, as a country that has similar legislation to the United States, also provides its residents with the right to trade Bitcoin legally. The Government of Canada approves the use of this type of currency as payment for various services and even goods. Cryptocurrency is subject to a certain tax, although it is used on a par with the official currency of Canada.
The regulation of digital currencies is not provided by banks and other financial institutions. For this reason, a legitimate crypt cannot be called legal tender. However, transactions from crypto to real money and from Canadian dollars to crypto can be made in special ATMs. The USA residents have the same opportunity.
Regulations in South America
South America is not so developed as North America. That is why its inhabitants live according to another law. The governments here are conservative towards the use of cryptocurrency within the states. Below there is the information about the acceptance of Bitcoin in Chile, Bolivia, and Argentina.
Until 2019, the position of the government regarding the use of cryptocurrencies in Chile was incomprehensible. The fact is that it was not officially banned, but it was also not allowed. So, 3 years ago, the government announced that taxes would be applied to the cryptocurrency, which marked the beginning of its legalization in the country.
Despite this recognition, over the past couple of years, there have been some difficulties with working on crypto exchanges due to the closure of commercial banks. Various banking institutions started to close bank accounts of crypto exchanges, so there were many lawsuits. Although enough time has passed, the use of Bitcoin and other cryptos in Chile may not be very reliable.
We note right away that cryptocurrency is not legalized in Bolivia. This applies to all digital coins (Bitcoin, etc.). At some point, the country banned all types of cryptocurrencies on its territory, citing the threat to the national currency in the first place. In addition, the fact that the cryptocurrency is not regulated by anyone plays a role here. This is extremely unprofitable for the state, because the cases of major fraud have already been reported in the country.
The government of Argentina, unlike previous countries, is quite positive about cryptocurrency. This is a great find for the countries of South America, where many are conservative about modern digital money. By supporting the use of crypto, the country protects savings from inflation.
Regulations in Europe
In describing the situation with crypto in Europe, it is worth noting its regulation within the European Union. The EU has a specific digital finance strategy, according to which a MiCA package of proposed regulation of crypto money is currently being developed. Upon its readiness, the generally accepted legal framework regarding crypto assets will be used within the union, consumer protection will be provided, and a certain tax base will be arranged for mining and other crypto activities.
Thus, Bitcoin is legal in the EU, and soon, it will become a more serious level of use.
Why did we stand North Macedonia out? The thing is that this country is one of the few that do not support cryptocurrencies and the decisions of the EU to promote their usage. Its government claims that crypto is not safe for the interior economic processes. There might be lots of scammers. Another reason for the non-acceptance of any digital currency is that it will not be regulated by some institutions.
Regulations in Asia
The Asian continent is gigantic. That is why there are countries of both points of view: those who are for crypto and those which against it. We will consider two large countries (Japan and China) because they have quite a great impact on the whole Asian region.
The first thing worth noting is the extremely positive attitude of the Japanese towards cryptocurrency and related operations. Residents of Japan freely own Bitcoin and other cryptocurrencies, and exchange and sell them.
Here, the use of cryptocurrency is so developed that a special body called the Japan Virtual Currency Exchange Association was created to regulate it. This is also done by the Japan Financial Services Agency (FSA).
Although everything is pretty easy and free to use here, the country faces issues with scammers. It has certain bodies that try to take all such activities under control. In recent years, government policy related to digital currencies has been strengthening.
Thus, Japan is the owner of one of the most progressive conditions for crypto usage in the world. The state gets a lot of profit from these currency operations. In addition, Japan is the largest market for Bitcoin.
China always adheres to a stricter policy towards any kind of innovation. Cryptocurrency is no exception. The government of this country is wary of illegal activities committed with the help of cryptocurrency. For example, tax evasion. Connected to this reason, China does not recognize the legality of cryptocurrency in its territory. Official information about this appeared in 2019, although crypto trading continued through exchanges located outside the country.
China had the largest concentration of miners in the world until recently. In 2021, cryptocurrency and related activities became completely banned. The stoppage of Bitcoin transactions by the Chinese had a great impact on the global community that uses this currency. The government made this decision based on several points:
- The threat to the plans for ecological development of the country.
- The threat to the digital yuan.
- The threat to the withdrawal of money from the country.
Now the state testifies the digital yuan and intends to make it the new leading crypto in the world.
Regulations in Australia, New Zealand, and Samoa
The countries from the Oceania region feel free to usy cryptocurrencies. They are developed enough to accept decisions not depending on other parties’ opinions. Let us consider Australia, New Zealand, Samoa, and Vanuatu.
Australia supports the legal use of cryptocurrencies. There is a special system for this: a person needs to register with the Australian Transaction Reporting and Analysis Center (AUSTRAC) so that the state can monitor compliance with the rules for using the crypto. The state’s institution controls the fraudulent activity and collects a certain amount as a tax.
Like Australia, New Zealand is not only loyal to innovations in the form of cryptocurrency, but also promotes its widespread use. So, its inhabitants can trade cryptocurrency freely. However, a certain tax will be charged for this. There is also one peculiarity: the employees can get their salary in any crypto (Bitcoin, Ethereum, etc.) without any problems.
Samoa and Vanuatu
These two countries have more conservative views on cryptocurrencies. One of the legal ways to engage in cryptocurrencies in Samoa and Vanuatu is to obtain a license to promote cryptocurrencies. Simply investing in Bitcoin is not legal here.
Everyone should also remember that money laundering through cryptocurrency, even with a license to promote it, is extremely illegal and will lead to negative consequences.
Regulations in Africa
The last countries we will pay attention to are located in Africa. There is a stereotype that African countries are far from such innovations, like cryptocurrencies. However, they are not. Below there will be information about 7 well-known countries and their attitude towards crypto tendency.
South Africa, Namibia, Zimbabwe, and Nigeria
These four countries have an ambiguous position regarding the legalization of digital money. On the one hand, countries do not promote the use of cryptocurrencies in their territories. On the other hand, they do not have a law prohibiting it.
As in many other countries, here cryptocurrency is not tracked or regulated. Thus, without a law prohibiting transactions with digital funds, residents of countries such as Namibia, South Africa, Zimbabwe, and Nigeria trade Bitcoin, Ethereum, etc.
Algeria, Egypt, and Morocco
Unlike the African countries described above, these 3 states have a clear position concerning crypto payments. There is a ban on them here. Surprisingly that these bans were introduced relatively recently: in 2017 (Morocco), 2018 (Algeria), and 2020 (Egypt).
Despite the illegality of cryptocurrency trading, the purchase of Bitcoin and other digital currencies here continues in good quantities.
Cryptocurrency is an innovation that has received worldwide recognition. Some states prohibit its use, others allow it and even, on the contrary, contribute to it. However, crypto payments have become a worldwide tendency, which will develop further.
We hope that this information managed to help everyone realize how is cryptocurrency regulated in different parts of the world and where it is completely legal.