Last updated on February 17th, 2022 at 09:50 am.

There are some Countries where Bitcoin is legal, and some Countries where Bitcoin is illegal or completely banned. The regulation of crypto has faced many controversies from its start in 2009. Then the mining of the first Bitcoin took place. Its legal status substantially varies from one country to another. If Bitcoin is legalized in a country, it means that the government needs to provide cryptocurrency sovereign backing.

Countries such as India have levied a bill on this digital currency. They have prohibited private cryptos with some exceptions. Other countries have also placed some limitations on the way of using Bitcoin, banks have banned their clients to make any crypto transaction or apply huge penalties on those who make such transactions. Thus Bitcoin is struggling to get complete acceptance worldwide. But, there are few countries where Bitcoin is legal. Then find out more here and read along to become aware of them.

El Salvador

  • In 2021, it was the first country that officially classified Bitcoin as a legal tender.
  • It was done by the President and all lawmakers of the country agreed to it.
  • The President believed by making this crypto a legal currency, Salvadorans who stayed abroad could easily send money back to their home.
  • On 23 August, the President announced that 200 ATMs are being installed in the country before Bitcoin adoption on 7th September.
  • Bitcoin is now used for paying taxes.
  • Also, no capital gains tax is subjected on any foreign investor.
  • The government has worked together with entrepreneurs for introducing a simpler wallet in case of transactions with low fees.

South Korea

  • Bitcoin is used legally in South Korea.
  • You can also legally trade and invest in not only Bitcoin but also other altcoins in this country. 

Japan

  • The government of Japan created unique regulations for Bitcoin when it accepted this cryptocurrency legally.
  • The biggest Bitcoin market share is held by Japan’s national currency.

Germany

  • Germany’s government announced that this cryptocurrency is not any legal tender.
  • However citizens can use Bitcoin as a substitute currency form.
  • They let their people make Bitcoin investments and also trade in it.
  • Various merchants across Germany’s capital city accept payments made in Bitcoin.

The U.S.

  • The U.S is known to be Bitcoin’s second-biggest adopter.
  • Bitcoin is held by the United States dollar with over 25% of the market share.
  • Using Bitcoin anyone can buy goods or services at different places in the U.S.
  • San Francisco is the Bitcoin hotspot of the U.S.
  • IRS has shown a great interest in this crypto and issued some guidelines.
  • They issued a notice in 2014 for providing tax treatment information on virtual coins.
  • In 2020, they asked taxpayers to provide a declaration of any engagement in crypto transactions.

Australia

  • Are you inquisitive about legal crypto trading in Australia?
  • With a lot of talks regarding it and prospective market regulations, it has been seen that cryptos such as Bitcoin are legal here.
  • Since 2017, Australia has accepted Bitcoin as a legal tender as it has been treated as a property as per the government’s declaration.
  • Capital Gains Tax was also applied to Bitcoin in Australia. 
  • New laws got implemented in 2018 for DCE providers. 
  • The country also has some new regulatory guidelines for all participants of cryptocurrency assets. 
  • From cryptocurrency asset issuers, intermediaries, transaction processors to miners, issuers of trading platforms, and providers of merchant service everyone must adhere to these guidelines.

There are few other countries that have also adopted this cryptocurrency. They are:

  • Vietnam
  • Ukraine
  • Nigeria
  • Kenya
  • Argentina

Conclusion

Currently, Bitcoin is range-bound. The market of cryptocurrency is volatile. Bitcoin is not an isolated digital asset class. Bitcoin may be creating reliability in other countries too. Great potential in Bitcoin is seen by many companies. These days various merchants worldwide accept payments in this virtual currency. Many businesses such as restaurants, online stores, and delivery services have started to accept Bitcoin payments. People can buy Bitcoin at different ATMs worldwide. Many municipal governments are attracting cryptocurrency businesses by allowing the adoption of Bitcoin. Several people have begun to invest or trade in cryptocurrency now. The high rate of Bitcoin adoptions makes it clear that this digital asset is part of the long run. As the international financial center, many other countries too have accepted Bitcoin legally. It is predicted that Bitcoin may become the future currency.

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