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Is Bitcoin a Legal Currency?

Bitcoin is considered the first cryptocurrency after its introduction in 2009. Most people credit Satoshi Nakamoto for the creation of this cryptocurrency. But nobody has revealed the identity of Satoshi Nakamoto yet.

However, many investors have expressed their happiness about Bitcoin. That’s because they see it as something profitable and secure.

Nevertheless, some people thought Bitcoin was something that would eventually pass. But, it’s more than a decade now, and Bitcoin is still around. Nonetheless, nobody can confidently say that a Bitcoin investment gives 100% verified returns, just like the other assets.

What’s more, the legality of Bitcoin is unclear in some places. The best option for them is to prefer online trading platforms like this app or any other popular platform where they get top-notch services regarding all aspects. As of 2020, Bitcoin use was legal in countries like the UK, the US, and Japan.

Several developed countries had also made use of Bitcoin legal. But, the legality of Bitcoin varies dramatically, especially in most emerging markets.

In China, the government restricts Bitcoin heavily, although holding this cryptocurrency is not criminalized. In India, the government bans banks from participating in Bitcoin deals. That means the legal status of Bitcoin and other cryptocurrencies is unclear in India.

Even in countries where Bitcoin is legal, people deal with it using the same laws with other assets. But you can run into problems when it comes to tax laws. In most countries, Bitcoin is considered a property and not a currency. Thus, they don’t see it as legal tender.

Top Countries Where Bitcoin is Legal 

Although Bitcoin and the entire cryptocurrency concept are not acceptable yet in most countries, some states have embraced it as a currency. Nevertheless, Bitcoin is struggling to be accepted in most countries globally. Here are the top countries where people can legally store, trade, and shop using Bitcoin.

  • Japan
  • South Korea
  • The United States
  • Germany
  • Australia

The citizens of these countries can trade Bitcoin freely. All they need is a reliable Bitcoin trading platform and capital.

Top Countries Where Bitcoin is Illegal 

Bitcoin is still not accepted in some countries despite its increasing popularity. That means the citizens of these countries can’t go shopping using Bitcoin. Nevertheless, they can use global Bitcoin trading platforms to invest in or trade Bitcoin.

Here are the top countries that are yet to legalize Bitcoin: 

  • China
  • Russia
  • Bolivia
  • Vietnam
  • Colombia

The citizens of these countries may be familiar with Bitcoin. Some are even interested in this cryptocurrency. However, the laws of their countries hinder them from using Bitcoin to shop. Some of them even have difficulties investing in or trading Bitcoin.

Even in countries like the United States, laws that govern Bitcoin ATMs differ from one state to another. For instance, New York requires licensing for any virtual currency intermediary via its BitLicense.

In other states, transmitting money does not affect cryptocurrencies. Some states have nuanced strategies. For instance, if the ATM and a cryptocurrency exchange where people buy Bitcoin are connected, a license is required in Texas.

The Bottom Line 

When it comes to Bitcoin legality, state guidance remains in flux in most countries. Although Bitcoin has been around for more than a decade, many countries have not legalized it. Some countries do not have clear regulations for governing the use of cryptocurrencies.

And this has left most citizens confused. In some states, citizens are interested in Bitcoin, but their governments do not care. Some countries have banned digital currencies.

Some of the reasons that some countries give for banning Bitcoin include fraudsters’ involvement, decentralization, and criminals. Nevertheless, more people are trading and investing in Bitcoin, even in countries where this cryptocurrency is illegal.