Even though Bitcoin is accepted in many places, some countries are worried about its volatility and lack of central control. Some people also see it as a threat to their current financial systems and worry that it could be used to fund illegal activities like drug trafficking, laundering money, and terrorism. Several governments have openly outlawed digital money, while others have attempted to shut off any support for it from their banking and financial institutions.
It is unlawful in Algeria to buy, sell, use, or keep virtual currency. This law was passed in 2018 and made it illegal to use cryptocurrency.
United Kingdom of Great Britain and Northern Ireland
Bitcoin Legal or Illegal: Legal
The United Kingdom of Great Britain and Northern Ireland is a European country located just off of the coast. There is no special regulatory framework for Bitcoin in the country, and the buying and selling of cryptocurrencies by individuals is subject to a capital gains tax which is payable on any gains that are made on disposal. For corporations, Bitcoin taxation in the U.K. depends on the nature of the transactions and whether they are one off or part of daily activity.
Bolivia
Since 2014, Bolivia has had a complete ban on the use of Bitcoin. The Bolivian Central Bank banned it and all other currencies not controlled by a country or economic zone.
Federal Republic of Germany
Bitcoin Legal or Illegal: Legal
The Federal Republic of Germany is a European nation with the largest economy on the continent. Germany requires a license for companies to deal in Bitcoin, and its regulators have called for a global framework to deal with cryptocurrencies as prices plunge globally and more links to established financial institutions are made. Germany also treats Bitcoin as private money, and banks in the country can also store and sell Bitcoin.
Colombia
In Colombia, banks cannot help people buy or sell Bitcoin. In 2014, the Superintendencia Financiera told financial institutions that they couldn’t “protect, invest, broker, or manage operations with virtual money.”
Swiss Confederation
Bitcoin Legal or Illegal: Legal
The Swiss Confederation, commonly known as Switzerland is a landlocked European country with a high standard of living. Cryptocurrencies are classified as intangible assets in Swiss law, are not legal tender, and have no specific laws against in. On the individual level, Switzerland does not tax cryptocurrencies on any capital gains. However, for tax assessment, they must be converted to the Swiss Franc at the year's end at a rate provided by the government.
Egypt
Dar al-Ifta, Egypt’s leading Islamic advisory body, issued a religious decision in 2018 declaring Bitcoin transactions “haram,” which implies they violate Islamic law. Even though they are not legally binding, Egypt’s banking laws get stricter in September 2020 to stop people from trading or promoting cryptocurrencies without a license from the Central Bank.
The country’s central bank, Indonesia Bank Indonesia, has made new rules that make it illegal to use cryptocurrencies, like Bitcoin, as a way to pay to start on January 1, 2018.
The country’s central bank, Indonesia Bank Indonesia, has made new rules that make it illegal to use cryptocurrencies, like Bitcoin, as a way to pay to start on January 1, 2018.
Iran
The relationship between Bitcoin and the Iranian government is not simple. Iran has turned to Bitcoin mining, which can make a lot of money, to pay for imports and avoid the worst effects of crippling economic sanctions.
Even though the Central Bank doesn’t allow trading of cryptocurrencies mined outside of the country, it has provided incentives for Bitcoin mining in the country.
The Netherlands is a Northern European country that is one of the most prosperous regions in the world. The country does not have any specific laws to regulate cryptocurrency, and Bitcoin along with others generally has to follow the same regulatory framework for other financial products. The Dutch government also requires that Bitcoins should be disclosed on the annual tax returns and that a capital gains tax will be applied to them. Additionally, companies are required to convert their cryptocurrency payments into the Euro and declare them on the income statement.
Even though the Central Bank doesn’t allow trading of cryptocurrencies mined outside of the country, it has provided incentives for Bitcoin mining in the country.
Netherlands
Bitcoin Legal or Illegal: LegalThe Netherlands is a Northern European country that is one of the most prosperous regions in the world. The country does not have any specific laws to regulate cryptocurrency, and Bitcoin along with others generally has to follow the same regulatory framework for other financial products. The Dutch government also requires that Bitcoins should be disclosed on the annual tax returns and that a capital gains tax will be applied to them. Additionally, companies are required to convert their cryptocurrency payments into the Euro and declare them on the income statement.
India
India is getting more and more opposed to cryptocurrencies. On November 23, the government said it planned to bring a new bill to the Indian parliament that would create a new digital currency backed by the central bank and ban almost all other cryptocurrencies.
The People's Republic of China is the world's largest economy by one measure and was one of the most popular regions for Bitcoin mining companies this decade due to the widespread adoption of technology. However, spurred into action due to the high environmental costs of mining and illicit activity, the Chinese government banned all cryptocurrency transactions in the country in 2021 when it forbade banks and other institutions from providing services such as clearing and exchange and made mining in the country illegal. However, such was the Bitcoin craze back then that the market simply shrugged off the announcement, and Bitcoin price continued to rise. Yet even though cryptocurrency trading is banned, the holding of it as an asset is protected by Chinese law according to a lawyer.
People's Republic of China
Bitcoin Legal or Illegal: IllegalThe People's Republic of China is the world's largest economy by one measure and was one of the most popular regions for Bitcoin mining companies this decade due to the widespread adoption of technology. However, spurred into action due to the high environmental costs of mining and illicit activity, the Chinese government banned all cryptocurrency transactions in the country in 2021 when it forbade banks and other institutions from providing services such as clearing and exchange and made mining in the country illegal. However, such was the Bitcoin craze back then that the market simply shrugged off the announcement, and Bitcoin price continued to rise. Yet even though cryptocurrency trading is banned, the holding of it as an asset is protected by Chinese law according to a lawyer.
Iraq
Even though the government keeps trying to stop people from using them, cryptocurrencies are becoming more and more popular in Iraq. The Iraqi Central Bank has been especially against them. In 2017, it said that they couldn’t be used, and that rule is still in place today. Early in 2021, the Ministry of Interior of the Kurdistan regional government also told money brokers and exchanges that they couldn’t handle cryptocurrencies.
Commonwealth of Australia
Bitcoin Legal or Illegal: Legal
The Commonwealth of Australia is an Oceanic country that is rich in natural resources. There are no laws against either mining or transacting in Bitcoin or other cryptocurrencies in Australia. However, Bitcoin is not equal to money in the country. Instead, the law treats Bitcoin as an asset that is held, and for companies, this includes taxation if the Bitcoin is part of daily operations or has been bought with the intention of making a profit.
Kosovo
Even though it’s not illegal to own or trade cryptocurrency assets in Kosovo yet, the government banned cryptocurrency mining at the beginning of January, citing a growing energy crisis. The country, which declared its independence in 2008, is now facing the worst power shortages in its history. To save energy, scheduled power cuts have been put in place.
State of Qatar
Bitcoin Legal or Illegal: Illegal
The state of Qatar is a Western Asian country located in the Middle East. Bitcoin and other cryptocurrencies are completely banned in the country's Qatar Financial Center (QFC). Qatar states that the reason behind the ban is weak compliance with know your customer (KYC) and anti money laundering (AML) regulations. These regulations are enforced globally by the Financial Action Task Force (FATF) and they require banks and other financial services providers to verify their customer profiles and determine the source of funds that they are transferring inside and outside the country. In fact, the Qatari Central Bank was quick to warn citizens in May 2022 about dealing with any unregulated financial firm after CoinMENA, a Muslim law compliant exchange launched in the country. Qatar is a Muslim country and follows the Sharia Law.
Nepal
According to the Nepal Rastra Bank, as of August 2017, Bitcoin is against the law.North Macedonia So far, North Macedonia is the only country in Europe that has a law against cryptocurrencies like Bitcoin, Ethereum, and others.
New Zealand
Bitcoin Legal or Illegal: Legal
New Zealand is an island nation in the Pacific Ocean. There is no specific legislation that bans the mining or trading of Bitcoin in the country. However, like others, New Zealand also taxes cryptocurrency transactions. Exchanges and other businesses must obtain a license from the government before providing services, and taxes are paid for selling Bitcoin if the intent behind the sale and the preceding purchase was to sell the currency and not hold it.
Turkey
As the value of the Turkish lira dropped, many people in Turkey turned to cryptocurrencies. With some of the highest use rates in the world, regulations came quickly this year as inflation reached its highest point in April.Republic of Ireland
Bitcoin Legal or Illegal: Legal
The Republic of Ireland is a sovereign state in Europe with a high income and one that is often criticized for its loose tax laws. There is no ban against either Bitcoin or other cryptocurrencies in the country, and the only regulations covering Bitcoin are those that are in place in the entire European Union. Taxes on Bitcoin are subject to the nature of the transaction, and the rates vary if it is regularly used or if rarely used.
Vietnam
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The State Bank of Vietnam has said that issuing, selling, and using Bitcoin and other cryptocurrencies to pay is illegal and punishable by fines between 150 million VND and 200 million VND.
Kingdom of Belgium
Bitcoin Legal or Illegal: Legal
The Kingdom of Belgium is a Northern European country with a relatively high GDP per capita. Cryptocurrencies are not outlawed by Belgium and there are no significant barriers to either mining Bitcoin or others or using them for transactions. However, Bitcoin is not a legal tender in the country. Gains resulting from the trading of Bitcoin and other cryptocurrencies are taxed under Belgium law, and authorities have often warned people about their speculative nature.
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