Here is the list of countries that consider Bitcoin legal or illegal

While some countries have put strict restrictions on the possession of Bitcoin, others have not bothered to lay down clear rules for the same. Thus, there is massive confusion about the legality, and knowing about the same is important to avoid getting into trouble.

Bitcoin has evolved with the increase in use across the globe, but it may take decades to replace the supply of money.

Countries where Bitcoin is banned:

There are several countries that have banned the use of Bitcoin completely citing various reasons.

Here are the 9 countries:

1. Bangladesh has completely banned Bitcoin as well as any other cryptocurrency and claims that it is unauthorized by banks in Bangladesh, considering the risk of money laundering.
2. The Central Bank of Nepal does not recognize Bitcoin as a legal currency and therefore bans it completely.
3. Algeria had banned all cryptocurrencies, saying they have nothing physical to back them up with.
4. Bolivia has banned cryptocurrencies citing their unregulated nature.
5. Ghana has made cryptocurrencies illegal.
6. The Dominican Republic has banned cryptocurrencies on the grounds that it is not legal tender.
7. Qatar does not have the support of the government, in addition to citing the possibility of financial crime, it does not allow the use of cryptocurrencies.
8. The Republic of Macedonia does not allow the use of cryptocurrencies.
9. Vanuatu-related Bitcoin news broke out claiming that they provide citizenship in exchange for Bitcoin, but the government denied it. Cryptocurrency is also illegal here.

Countries where Bitcoin is legally restricted:

There are several countries that require a license or do not allow payment through cryptocurrencies; although not completely banned it.

Here are these countries:

1. Saudi Arabia’s banks are prohibited from participating in cryptocurrency exchanges.
2. Bahrain has restricted the use of cryptocurrencies by putting licenses in place.
3. China’s regulations restrict the use of cryptocurrencies.
4. Hong Kong has placed restrictions on exchanges as well as on ICOs (Initial Coin Offerings).
5. Russia has legalized cryptocurrency, but with certain restrictions. However, crypto cannot be used to make payments.
6. Iran does not allow its financial institutions to handle cryptocurrency.
7. Turkey does not allow crypto as a financial asset or payment tool.
8. Vietnam allows possession and trading of crypto, although Bitcoin remains banned.
9. Kazakhstan has banned cryptocurrency mining and exchange.

Countries where Bitcoin is legal:

Almost 111 countries in the world are in the process of or have legalized cryptocurrencies and see them as a potential future.

Here are some of these countries that are Bitcoin friendly:

1. Australia legalized cryptocurrencies way back in 2017 and also charges taxes.
2. Antigua and Barbuda may legalize cryptocurrency to pay for citizenship.
3. Finland has legalized crypto and considers it a virtual currency.
4. Germany has legalized the buying, selling and trading of cryptocurrencies if they come from a licensed organization.
5. Indonesia legalized cryptocurrency in 2019, but it is treated as a commodity while traded.
6. Italy recognizes crypto as a virtual currency and imposes taxes.
7. Ireland also considers crypto as its virtual currency.
8. Marshall Islands’ legal currency is SOV, which is powered by blockchain technology.
9. New Zealand weighs cryptocurrency against gold and also imposes taxes.
10. Norway considers cryptocurrency a resource.
11. Sweden allows trading in Bitcoin, and requires tax.
12. Uzbekistan has legalized crypto, but requires licensing.
13. Venezuela has legalized crypto activities, after banning them in 2018.
14. The US taxes cryptocurrencies.
15. Japan considers income from cryptocurrency as miscellaneous income.
16. Chile has provided protection for cryptocurrency exchanges.
17. The United Arab Emirates has its own Emirates Blockchain Technology to move its large transactions to the blockchain. Thus, a government is run by blockchain.
18. Estonia does not consider crypto legal tender, but it is considered a virtual currency.

Countries where crypto is legal tender:

El Salvador: This is the only country so far that recognizes Bitcoin as legal tender. Prior to this action, it was recognized as an investor’s risk. Bitcoin investors should rejoice. Bitcoin as legal tender in any country is a major event that deserves all the press it gets. El Salvador’s move could become a notable precedent in history if more and more countries start accepting Bitcoin in the future.

Conclusion

Regardless of the myths associated with cryptocurrency, governments are moving forward to legalize cryptocurrencies. Many countries are in the process of analyzing and researching the same.

Shourya is a crypto-fanatic who has developed an interest in Business Journalism in recent years. Currently working as a writer with Coingape, Shourya is also an avid reader. Apart from writing, you can find her attending poetry shows, exploring cafes and watching cricket. As she says, “dogs are my home,” her first rescue of a dog was at the age of 7! She has always spoken for mental health and rainbow pride.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.