Bitcoin had its first inception in 2009 and underwent stratospheric levels in the rise of value in 2017. As the cryptocurrency market largely lacks uniform regulation and is a largely speculative market, there are countries where bitcoin is illegal. Bitcoin has the potential to transform the global economy and most countries have adopted a friendly approach to Bitcoin. However, different countries have different regulatory approaches to bitcoin.
There are numerous countries that take Bitcoin regulation very strictly and have gone to the extent of banning them. Basically, Bitcoin and cryptocurrency transactions are usually anonymous, and you can practically do them from anywhere globally. But, being situated in a country that has a friendlier approach to Bitcoin or cryptocurrency, in general, allows you to be secure when it comes to your digital rights and monetary protection from phishing and other scams. If you’re starting off new or need a reliable one-stop solution for all Bitcoin-related issues, you should definitely opt for something like https://allin1bitcoins.com. If you want to trade successfully in Bitcoin, it is beneficial for you if you’re situated in one of the countries with flexible policing towards Bitcoin. Here are the 5 countries where Bitcoin is legal:
The first name that comes to our minds when we talk about Bitcoin and legality is Japan. It is because it has one of the most progressive environments for cryptocurrencies in the world. If you’re a cryptocurrency exchange business, you’ve to acquire a license from Japan’s Financial Service Agency. Japan officially acknowledges Bitcoin as a unit of account, that is, a digital currency. More than 10,000 businesses in the country accept Bitcoin as legal means of payment. The interest of the individuals is also protected in Japan as it is under some sort of regulation from the government. Customer identities are verified here, and suspicious activities are immediately controlled and informed by respective sectors.
2. United States
It recognizes legitimate Bitcoin usage as well as other cryptocurrencies for as long as they are not being in illegal activities. They are beginning to consider Bitcoin as legal tender and laws governing the use of Bitcoin differ from state to state. Even, the definition of cryptocurrency is varied and different under federal activities. Under the Commodity Exchange Act, it is a registered commodity. They are instead considered as property and are liable to tax guidance rules accordingly. Most American businesses accept Bitcoin as a valid and legal means of payment.
3. United Kingdom
Bitcoin is legal and works as a means of payment in the United States. They are also subject to capital gains and subsequent regulations under the government. You’re taxed on your capital gains you get out of Bitcoin and other cryptocurrencies. However, there are no specific laws that determine the regulation of cryptocurrencies in the country. Corporate tax rules apply to business for profits gained or losses incurred here. The general rules on foreign exchanges and loan relationships apply in the country.
Canada was one of the first countries in the world to come up with regulatory measures and legislation for Bitcoin. In 2014, it made Bitcoin comply with KYC and AML laws. Under the Canada Revenue Agency, Bitcoin is declared as a commodity and any gains or income from Bitcoin is considered as business income, which, in turn, is taxable in nature. However, it must be important to note that Bitcoin is still not considered as a legal tender in Canada. All trading of goods and services involving Bitcoin is considered as a Barter transaction, under Financial Consumer Agency’s recent guidelines. Moreover, all cryptocurrency exchange businesses are required to comply with AML laws and other requirements imposed by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) thus following all requirements of the Proceeds of Crime and Terrorist Financing Act.
Russia not only considers Bitcoin legal but also allows for Bitcoin mining. The country considers Bitcoin mining as an entrepreneurial activity that is subject to taxation under the required sectors. Only qualified investors can take part in proceedings that are related to initial coin offerings (ICO). It is however not considered legal tender. It is considered as property, and you’re not authorized to exchange cryptocurrency for any type of foreign currency. The exchange is however legal if performed through licensed operators. The Ministry of Telecom and Mass Communication however wants miners to be exempt from taxation for the first two years, whereas they want energy consumption to be set at a limit. Besides, they’ve also been debating the creation of a special platform of exchange that would ensure transparency for all cryptocurrency exchange for the sake of safety and security of miners. Many amendments have been made to the Civil Code to protect the rights of cryptocurrency owners. Judicial protection is also guaranteed for digital money as well as digital rights concerning Bitcoin.