As per reports, Bitcoin, the most prominent digital coin, performed its debut after the economic crisis of 2008. As a result, foreign exchange, government authorities, and tax organizations are trying to create efficient cryptocurrency regulations.
The legality of bitcoin is entirely dependent upon its utilization and location. However, everyone knows government authorities are not responsible for originating new bitcoin units, and you can privately mine this virtual coin.
The only thing you need to mine bitcoin is a mining machine with a bitcoin wallet. Bitcoin trading is legal in most countries. To know more about bitcoin trading, check https://bitiq.org/. Since bitcoin is not related to any major party, intermediator, or financial organization, it works as a P2P system. Bitcoin has limited virtual existence, and it lacks a real-life existence.
Regardless of only a virtual existence, it has an actual market value. Bitcoin offers users many benefits while using it as an alternate payment system. Bitcoin is legal and illegal in some countries; let’s check which countries have banned bitcoin and allowed bitcoin.
United States
The United States is a hotspot for bitcoin as it is home to many popular exchanges like Kraken and coin base. As a result, the US has been highly positive regarding bitcoin. Moreover, government authorities and tax authorities keep coming with different cryptocurrency regulations to remove the possibilities of illicit activities like financial terrors, terror funding, and money laundering.
The online Microsoft Store started to accept bitcoin payments in 2014. Undeniably, many merchants in the United States accept bitcoin as an alternate payment method, but bitcoin is not classified as a currency in the United States. Instead, Bitcoin is classified as MSB in the US. MSB stands for the money services business and underlies BSA. Therefore, Bitcoin is a money service business and a property for taxes on capital gains.
Canada
Canada was the first-ever country to host a bitcoin ATM. In addition, Canada established the first bitcoin ATM in Vancouver near a coffee house. Furthermore, cryptocurrency regulations in Canada ensure no misuse of bitcoin in money laundering activities.
In the United States, bitcoin is a property and money service business; in Canada, bitcoin is a commodity. However, the trustable exchange offering cryptocurrency services in Canada is classified as a money service business. Since bitcoin renders some intense price swings, few banks in Canada do not allow Canadians to buy this virtual coin with the help of Credit card and debit cards.
El Salvador!
El Salvador is in the limelight after accepting bitcoin as a national currency. A few months back, El Salvador became the first country to classify bitcoin as an utterly legal tender. Nayib Bukele, the president of this country, also announced the bitcoin city.
Bitcoin city fueled by bitcoin bonds will be established in El Salvador soon. The country is currently free from any taxes on capital gains. Moreover, the bitcoin city will also be free from VAT.
Countries where Bitcoin is illegal!
China!
China was a bitcoin hotspot a few months back, but the higher authorities of China announced a ban on cryptocurrencies and not just only on bitcoin. Any activity related to bitcoin or cryptocurrencies such as buying, selling, trading, and mining is banned in China.
Exchanges are not allowed to give services to customers. After the ban, miners are shifting to different countries as per their convenience. The majority of the mining community is either moving to Texas or Kazakhstan, and both these countries face an electrical crisis after Chinese miners rush towards them.
Russia
We cannot say that bitcoin is entirely illegal in Russia as Russia has not specified any cryptocurrency regulations till now. But using bitcoin payments in Russia is illegal.
Vietnam
Vietnam banned cryptocurrencies back in 2014. Vietnam intensely studied the consequences of adopting bitcoin as a payment method and decided to ban it as an alternate payment method. Moreover, bitcoin is not classified as an investment or property in Vietnam.
These countries have banned bitcoin and other digital currencies, including maintaining the nation’s financial stability and reducing electricity consumption due to bitcoin mining.
Final word!
It’s been a decade since bitcoin entered the market; many countries like India do not have any particular cryptocurrency regulations and panels. Therefore, legalizing bitcoin is not that easy; that is why government authorities are taking a great deal of time to come up with any rule.
