Bitcoin is one of the most successfully accepted and used cryptocurrencies in the world. The legalization battle of this very virtual currency has been the talk of the town ever since its success made rounds worldwide with Bitcoin Smarter App.
This era is calling for smart strategies when it comes to trade and business, and bitcoin seems to be a competitive entity. One needs to just have bitcoin trading software, one of the most reliable platforms to begin bitcoin trading, and start earning. Although this virtual currency poses to be a good replacement for the fiat currency, its legalization and the extent to which it can be utilized are open to debate. At this very moment, there are 193 countries in the world and each country has some preferences and concerns regarding bitcoin’s legality. Let us have an insight into the countries that have declared bitcoin legal and also the countries that are still in uncertainty.
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Countries where ‘bitcoin’ is legal
Despite the fact that it provides transactions worldwide, countries hesitate to operate it fully because of a lack of proper international laws and regulations. A recent survey conducted by the Library of Congress in 2021 revealed that 103 countries have instructed their financial institutions to make rules and regulations for cryptocurrencies. Following are the countries where bitcoin is legal.
United States of America
Right after four years of its emergence into this world, the U.S directed its treasury department’s financial crimes enforcement network (FinCEN) to make rules and laws for bitcoin. The processing, exchanging, or using of bitcoin or any other cryptocurrency is considered a money services business(MSB), and the U.S makes sure that all such MSBs are affiliated with the bank secrecy act and report to the treasury department on transactions more than $10,000. The government is keen to make more laws regarding cryptocurrencies to track any suspicious and criminal activities related to them.
Canada is also seen as interested in these digital currencies, bitcoin being on the top of the list. The Canadian government focuses on bitcoin being used for income tax purposes. To prevent any mal use of the currency, the government has made sure any MSB gets registered with the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC).
Australia also is a bitcoin-friendly country and encourages to have digital currency transactions. Bitcoin is considered a financial asset in the country and thus any purchasing or selling of bitcoin results in a capital gains tax. The use of bitcoin is descending to the grass-root level as mere computer shops and air travel agencies like “cheap air” deal in bitcoins.
El Salvador is the only country whose legislative assembly passed a law on 8 June 2021, declaring it to be the legal tender within the country.
Apart from the above four, many other countries have made bitcoin legal and are discovering new ways to encourage businesses through it.
Countries where Bitcoin is illegal
Although Bitcoin is welcomed in most countries, still some countries have banned it, whether implicitly or completely.
Once being the hub for cryptocurrencies, china has now imposed a complete ban on all digital currencies just due to its volatile and decentralized nature.
The Central Bank of Turkey has recently imposed a ban on all cryptocurrencies in order to prevent the country from any possible irremediable damage.
Qatar has strictly instructed its financial institutions and banks not to trade in bitcoin or any other cryptocurrency because it poses severe risks like price volatility and its efficacy in crimes. The country 2018 clearly warned the banks of penalties for violations.
More than 40 countries have banned bitcoin or have restricted its use.
Bitcoin and other cryptocurrencies bring a new and smart approach to financial dealings and trade. The across-the-border payments are easily made through bitcoin reducing the menace of high transaction costs and bank formalities. But the hazards of its price volatility and its use in money laundering, terror financing, and drug trafficking, it is still a debate as to whether the world should completely adopt the digital currencies or not.