One question. Is cryptocurrency legal?
The question you might ask when you’re interested in buying Bitcoin or any other cryptocurrencies.
To be honest with you, there is not only one answer to this question but the global answer is, that the legality of cryptocurrency depends on your location and your activity.
But those regulations are changing all around the world because cryptocurrency is kind of new. Bitcoin, the most popular cryptocurrency first saw the daylight only in 2009 and if we compare that to other currencies – it’s nothing.
Why Are The Governments Interested In Cryptocurrency?
Cryptocurrencies aren’t issued by a bank, instead, crypto coins are being mined – they are computer-generated and they are not related to the governments, so there are no exchange rate fees.
As you know, it’s digital cash – it doesn’t exist in a physical form, and that makes cryptocurrency more efficient when buying products or services online, and the governments want to establish a controlled virtual currency system to increase its security, so each country is forming its own laws which regulate cryptocurrencies because there are no international laws.
Some countries say yes to cryptocurrencies, and some – no.
Cryptocurrencies Are Legal In These Countries
Congratulations, if your country of residence is on this list, if not – check for the nearest countries to you that say yes to cryptocurrency, so you can move there.
Note that in this “legal” list some of the included countries haven’t completely legalized cryptocurrencies – there are some minimal regulations.
The USA
Cryptocurrencies are pretty advanced in the USA and the country has a positive stance toward cryptocurrency.
However, the government of the USA has created a few agencies that work with a mission to stop cryptocurrencies from getting used for illegal transactions.
Most people consider that as a plus, but some might view it negatively.
Also, worth noting is, that you can use Bitcoin in the USA not only for online purchases – it’s possible to use it as a payment in some progressive businesses like Subway when buying a sandwich.
Canada
Also, this Northern American country is positive towards cryptocurrencies and the government of Canada isn’t looking at cryptocurrency from the sideline.
They are actively ensuring that cryptocurrencies aren’t used for money laundering.
However, the biggest Canadian banks have banned cryptocurrency transactions with their credit/debit cards.
Australia
The Aussies have no hate towards cryptocurrency and in Australia, cryptocurrencies are considered a regular currency – like all other currencies, so you can legally trade, buy or mine them.
The European Union
Most countries of the European Union allow cryptocurrency, but some specific EU countries have formed their own laws for cryptocurrency.
Some of them are:
- Finland. The Finns classify cryptocurrency as a financial service, not as a currency, which means – value-added tax.
- Belgium. Belgium has also made sure cryptocurrencies don’t have a value-added tax.
- Cyprus. In Cyprus, they completely don’t care about what you are doing with cryptocurrency. There are no regulations or laws for cryptocurrencies.
- In the United Kingdom, the Brits are supportive of cryptocurrency and there are several tax regulations for cryptocurrencies.
- Bulgaria. Cryptocurrency is under its existing tax laws.
- Germany. Cryptocurrency in Germany is a legal currency but they are taxed differently.
However, the European Central Bank is working on identifying the financial risks of using cryptocurrencies.
And that’s a reason for Europeans to be nervous because it could bring some regulations OR maybe positive improvements.
Now, let’s move to countries that say no to cryptocurrencies.
Cryptocurrency Is Illegal Here
Bad news for those who live in the following countries, but at least now you know some places where you can move.
Cyprus is a good option, right?
Anyways, the countries who say no to cryptocurrencies must have some reasons to do that.
It could be a whole list of reasons, like its volatility, not being centralized or it being used for illegal transactions, such as drug trafficking and money laundering.
But not all of these countries have completely banned cryptocurrencies, some governments have just cut support to them, so it’s difficult to trade and use cryptocurrencies.
China
The Chinese government really dislikes cryptocurrencies.
In fact, all Chinese banks and financial institutions are banned from transacting cryptocurrency, and cryptocurrency exchanges are also banned.
The hate is real for cryptocurrencies in China so they’ve also banned cryptocurrency mining. But surprisingly the Chinese government says they are supportive of the idea of creating international laws for cryptocurrencies.
Russia
In Russia, there are no regulations for cryptocurrency but there is one sad thing.
You can’t use cryptocurrencies as a payment method to purchase goods or services because in Russia – it’s illegal.
At least, better than China.
Bolivia, Columbia, and Ecuador
These Latin American countries are worth noting because they have completely banned the use of cryptocurrencies and, in Ecuador, ALL cryptocurrencies were banned after a majority vote in the national assembly. True democracy.
The Rules Will Definitely Change
The first cryptocurrency, Bitcoin, is 10 years old and for a currency that counts as relatively new, so – many countries and their governments have no laws for cryptocurrencies or the regulations aren’t very specific.
What does it mean for the future?
The laws and regulations will change when the governments will have fully analyzed cryptocurrencies.
But now, it’s tough to predict if the laws are going to change for the good of cryptocurrencies or the worse.
