Bitcoin Forum

I am sick and tired seeing thread here on legal about the reasons why bitcoin is illegal on other countries. Its about a hundred same topics. So here are my assumptions hope this would help.

*TAXES
- I think its the main reason of all these. Government didnt know how to categorize bitcoin for their taxation whether it would be on a passive income or not because BTC is also a currency. Thats why its better for them to ban it.

*BANKS
- Crypto becomes a threat to them leading investors to invest on cryptocurrencies rather than them. The monetary system also will change if Bitcoin becomes more popular than fiat. Central banks, which is a part of the government would make some inforcements to stop this.

*SCAMMERS
- This is the good side of all this illegalizations, to protect people from increasing number of scammers on the internet. But if that so, its not a reason why they would stop people from achieving all opportunities bitcoin would give.

Correct me if im wrong, but these three are the main reasons why i think bitcoin is illegal on other countries

It really depends on the country. By taking a look at this page:

https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory

...you'll be able to see countries that have banned Bitcoin and why. Majority of them don't have any reasons cited, but here are a few that have theirs mentioned:

Ecuador - they have an electronic money system
Bangladesh - money laundering concerns
Macedonia - they think it's risky and speculative
Others simply ban using them as payment for transactions.

There's likely no single prevalent issue, but rather a combination of these reasons cited among other things.

Simply they want to save their country from economical crisis,if the bitcoin got popular then the fiat use will reduce so it means taxes for the governments are also reduce.But they better regulate it than making it illegalizing then it will save the government from tax problems and also citizens of their country can get benefited.

Most of the countries have their own explanation why they tagged bitcoin as illegal. There’s a lot of reason for sure but we must remain positive despite of the pressure that government and even banks gives to cryptomarket. Illegal in some places but for their people its a good opportunity that they should not missed.

In addition to this, I think Personal Interest can also be a reason why bitcoin becomes illegal. A lot of big personalities are making negative comment to cryptocurrency just to protect its company. We all know how good cryptocurrency is, and for sure even government know this thing but they are just afraid because its hard for them to collect taxes from this kind of technology.

In addition, not only scammers but some of these countries are close minded that Bitcoin shall be ban because it can be use in illegal activities by most of the bad people in which it my put their nation and welfare of the people at risk. They banning it without considering that their is regulation in order to prevent Bitcoin to be use in illegal means and to ensure that Bitcoin will be use in prosperity of every nation thru tax and reduction of unemployment.

There are countries that banned Bitcoin and cryptocurrency in general all because they have a hard time understanding the whole thing and what they heard and viewed about Bitcoin is limited to the negative side and of course the fact that Bitcoin is something no country can completely control. What we are hoping is that countries that recognized Bitcoin can get benefited by this development and those that banned will realize that they let a good opportunity passed so that later on these countries will also be joining the bandwagon.

Well learning from the history, bitcoin was used as an avenue/gateway towards acquiring illegal goods under the dark web due to its decentralised nature- which cannot be regulated and controlled by the government. Due to this, crime rates increased and drug cartels became prominent in the society. Though this is only one aspect of it, another problem brought about its decentralised nature is the imposition of taxes. Since the government cannot impose tax on something that they cannot regulate/control, this leads to other countries prohibiting/banning its utilisation on the market.

I don’t believe government doesn’t understand cryptocurrency, of course they knew this thing and some of those are just afraid because they cannot control this market. Well, I see a good thing during G20 Summit and those countries still have time until July to give some insight about this thing, let’s all hope for good. :)

Taxes are definitely not the reason for banning bitcoin. In order to buy bitcoin you have to earn Fiat. If you did that the state has already lost taxes and bitcoin is not to blame. Children and the Internet is not an economic topic at all and it can only be viewed as an attempt to legally justify claims to bitcoin. But the banks really bitcoin prevents.

It wouldn't matter if it comes from passive income (Mining) or you earned it by work or commission, it would still be classified as income and is taxable through it.
I don't think this is an issue, if the government is simply banning Bitcoin and other cryptocurrencies because of this reason they are simply favoring one kind of business and is violating the equal protection of the laws through all of their citizens.

Another wrong reason of some politicians whey they related crimes with Bitcoin, again this is not Bitcoin's fault as criminals are taking advantage of it existing virtually and being anonymous.

Bitcoin become advantage for corruptor because they can cover their transaction trace.
Let's imagine they are using mixer, it's become far more difficult to trace !

Bitcoin also cause inflation especially when my currency are weak against dollar ( since bitcoin also based on $ )

Bitcoin has only been around for 8 years. Do you want to say that there was no corruption in your country before the appearance of bitcoin? Lol. The most convenient form for bribes is Fiat. But bribe takers also know how to use non-cash money. What prevents them from using bitcoin? Corrupt officials should be caught by special law enforcement agencies. It is their job to prevent the transfer of money in any form.

It's not difficult at all for the government to make people pay their due taxes. The only thing they need to do is force exchanges to hand them over user information, which has already been happening. Coinbase functions as example of what we will be going through in the coming years -- if people don't declare their taxes themselves, the government will make them pay it. Funny thing is that Coinbase wanted to make everyone believe that they booked a victory by 'just' sending the data of 13,000 users to the IRS. It's firstly not a victory at all, but a severe loss, but secondly, the 13,000 users they snitched on, were the largest account holders. :D

Normal thing that they would focused or pinpointing out those largest account holders since they do able to get some nasty tax on it.I have the same perceptions that we are really heading on that way.Regulation would really require such thing when tax is being implemented then exchanges and other similar services or institutions would really need to comply on whats being asked.

Most of you seem to be thinking that the government wants to save, protect, work for the benefit of the community. These might be the principles of some single politicians, but government as a whole is the oppressor. It only cares about 2 things: power and money, and it will do whatever it is in its power and spend all the money to remain in its place.
They care about your well being only to some extent, because they have to. You're their milk cows. But they won't be afraid to slay a cow or two if it keeps the rest in line.

Honestly, the main reason for the non-recognition of Bitcoin is the fear of cryptocurrencies in general, because they cannot control the transaction of money and  bitcoin is digital currency , and unfortunately, the governments believe that Bitcoin is used especially in prohibited things, such as, drugs, arms trade...So they are afraid of the spread of these harmful uses on the society.

In addition to that, If the governments will find a solution to these problems and particularly if they will control the transactions of money and then there will be a collective recognition of many countries in bitcoin and other currencies, and I think this will be achieved in the near future.

Most of the countries have their own explanation why they tagged bitcoin as illegal.Simply they want to save their country from economical crisis,if the bitcoin got popular then the fiat use will reduce so it means taxes for the governments are also reduce.

That might be the reasons why countries are banning bitcoin and making it illegal. But you must not forget that the major reason why bitcoin is categorized by some countries as an illegal currency because it is/can be used for illegal activities, funding terrorist not only scamming but you can also categorized it with "scamming" and as well as money laundering. Overall your list is the summary of the reasons why still there are some that doesn't fully trust bitcoin, they are only looking at one-side.

And anyhow from the characteristics of bitcoin itself, it still raises concerns for the country, as well as its existence which only exist in cyberspace. This can make the country lack/difficult to protect a various activities that are done related to bitcoin/crypto. Well.. in this world certainly not only good people who live, there are still evil people who abuse these advantages for a more negative purposes.

each country has its own policy on bitcoin, some are legalized and some are forbidding bitcoin from entering their own country, the reason some countries that legalize bitcoins enter their country are usually national financial crises, because banks and ATMs have run out of cash to be reissued. Another factor is the wide-eyed and unorganized Indian population seeking to withdraw cash to fund its day-to-day operational costs and other needs, thus causing the demonization not to go as expected.

If Indians invest a lot of money in bitcoin, it will lead to a deflation of the rupee. Sterilization of a large mass of cash should lead to a shortage of money. It's the law of Economics. Did you notice that? There are always those who want to buy and sell bitcoins. This compensates for the amount of money in the economy. But banks may experience a lack of money in deposits. Maybe this is the reason for the prohibitions of bitcoin in India?

Yes of course these are the only 3 main or broad heads to categorize the illegallity of Bitcoin.. taxes of course the main reason and banks in every country seems to have a problem with the Crypto systems. When it comes to scammers, it is undoubtedly one of the main reasons for non legalization!!

If it brings money and power take it if it is the threat to money and power that we already have kill it.
Simple as that. People are moving factor in the world, but collateral too. Only chosen ones are important.

You got a good conclusion out of all same shitty posts having same content inside.
Govt. do not understand how to tax Bitcoin and other anonymous cryptocurrencies. It is difficult for them to control it but if made illegal it can become a popular source of wealth hiding or money laundering.
Banks want to adobt blockchain tech. but want to avoid cryptocurrency as tech. behind it can help them to their system easy and cost effective.
Scammers often collect huge amt. of money from crowd for project development in form of ICO's and then run away. It is a good side if such crowd funding would be regulated in interest of investors.

OP's is right on the conclusion above, the main reason is paying taxes to the government but they failed to do that because of decentralized coins ever. But there are some countries that bitcoin is legal and also some do not declare that cryptocurrencies having a payment of taxes so it is not legal and also not illegal. Being neutral countries in bitcoin or other cryptocurrencies is good to hear then enjoy the moment while they are quite in prohibited law.

Is depend of that country, some country legalized bitcoin and illegalizing bitcoin. But in country legalized bitcoin, I sure bitcoin more grow faster in that country, they do transactions with bitcoin, more investors believe especially in that country. Some country not legalized bitcoin yet, because the government afraid and can't control bitcoin. So that reasons the government banned and illegal bitcoin for their country.
My hope in the future more country can accept and legalized bitcoin !

avoiding the existence of criminal actions in the field of technology, and the most important conventional currency vigilance replaced by electronic currency, because if it happens, the value of convention currency or the value of the country's currency will drop dramatically and cause the market to decline rapidly, loss will not be infinite

The biggest thieves and scammers are Banks and governments. Technology moved fast and now they're trying to catch up.. best way for them to make money and keep hold of power is to illegalise till they figure out what to do.. unfortunately they have no concerns whatsoever about criminal activity..

yep, maybe some countries don't feel confident in their own national currency...

You're right, but banks can't exist without our money. We all help them in this. Each of us was pleased with the opportunity to abandon the services of banks and gladly continues to use Fiat. Developers, miners and users cannot agree among themselves to create conditions for the use of bitcoins as a currency. The life of bitcoin is in our hands but we are irresponsible about this gift.

The "legality" status of bitcoin only depends upon the mindset of the people and the government who is going to accept it . If government takes it as a threat to their fiat , it is never going to be termed as one of the official currency . There are outcomes of everything both positive and negative and with bitcoin i think there is  a way to deal with every type of negative outcomes if it is handled with intelligence.

For some countries, it my illegal yet because they cannot yet accept the vision and the reason of cryptocurrency and that is to help promote the country and the world to become cashless and for it to help the world in having a worldwide innovation and that is thru the use of blockchain.

But now they are realizing its potential that they can't simply declare it as illegal as under the table people will continue its use and try to make profit. Even if countries ban its usage there are still number of ways to access bitcoin and government also knows this thing. I think they should start come out with solutions rather than imposing a ban on new technology.

There are certain rules  that some governments think bitcoin is violating, some don't care, some don't want bitcoin at all as they don't want their countrymen to manipulate as they were thinking that there are big whales just awaiting for the price to get high so they can sold their coins.

Banks in the last years don't really want our money anymore with how easy it is for them to obtain money. It's not for nothing that the interest rates on our savings accounts are almost zero.

It has gone even so far, that banks have started to charge negative interest rates, which is almost funny, but a very sad and sickening development. Banks can borrow money for free in the time we're living in.

They then loan it out to businesses and regular people, and that that major difference in interest flows directly into their pockets. It's almost free profit if you think about it. Our capital has almost become redundant.

They are afraid to lose their control that's why they combine forces to ban cryptocurrency. The reasons mentioned by OP may be one of the reasons why some countries ban crypto but I believe that behind those reasons, this is their major reason - if they will not ban crypto and more people use it then they cannot monitor anymore the movement of money in which case they would lose control and have less power. We can see that the bankers are more often than not catalyst of spreading fear, uncertainty and doubt because they don't want people to think that using cryptocurrency has some advantages over using fiat money.

this is the main reason some countries ban bitcoin from entering the country, but it is different if bitcoin is in charge, maybe a country that initially refuses to rethink, so I guess it's just a fantasy

Apart from what you have listed Op the people making it illegal say bitcoin is a speculative currency which is not a good characteristic for the financial market, hence their decision but with regulations underway chances are high that in most countries it will be soon legalized.

In essence now looks like bitcoin is being highlighted much deeper by most governments, will it be able to advance the country without any negative impacts or not. And I think it depends on the insights of each of the governments of each country too., in deepening the technology related to crypto and its various things like the characteristics of bitcoin/crypto.

Now governments are closely monitoring the development of the cryptocurrency market. They cannot ban the use of bitcoin so they try to lead its legalization and develop mechanisms to regulate it. If they succeed, there will be no need to ban bitcoin. But if the government will not be able to control it they will ban.

Bitcoin can be used for illegal activities like drug or terrorism so they don't want bitcoin in their country.But the main reason is people can use bitcoin without taxes if they continue to do then all people will use crypto which leads to economical crisis in their country.

I often follow to the news about how special investigate authorities investigate crimes related bitcoin and I don't understand why do people talk about that,first of all its not anonymous,bitcoin is pseudoanonymous which means when investigate authorities have doubts in bitcoin transactions they will investigate it easily..So we can say that its easier to investigate bitcoin transactions than in another situation.Also you said this process will cause economical crisis,its not true because there will be new,imported money,for example just imagine in X Country where is no economical progress, bitcoin maybe very effective for their economical,social and for other forms...

You’ve created a much detailed list, those three is will fitted. I can add one and for me the biggest reason why the government is not open in legalizing bitcoin and all cryptocurrency.

 *Greediness greedy
[gree-dee]
adjective, greed·i·er, greed·i·est.
• excessively or inordinately desirous of wealth, profit, etc.; avaricious:
the greedy owners of the company.
• having a strong or great desire for food or drink./*Money

From this word is enough to define what we created in this world in the persona of our elected government employees to servants. They don’t care about the people who are poor, but only to the rich and mighty.

Those big companies are just lucky because they already got the money and all they did was to hide it to everyone and put it on the bank which means it doesn't circulate well, whereas bitcoin can circulate well through the use of blockchain.

There are so many reasons for making bitcoin illegal. And some of the reasons are listed as below:

-> Evasion of taxes by the citizens of the country is one of the biggest worry that makes the government of any nation to rethink about the legalization of bitcoin. It will make the processes much more tedious for the governments!!

-> Governments of many nations hold an opinion that the bitcoin, if legalized, the incidents of criminal activities in the country would scale up to a great extent!! This is the reason these countries end up banning bitcoin or declaring it illegal.

-> Due to anynoumous nature of the transactions in the crypto market, governments argue that the black market transactions would emerge in their country and it would lead to a depressed economy.

Yes, there are the numerous points of view regarding this topic and your assumptions here are totally right too.

Banks are the current competitors of crypto. As cryto currencies are ruling the currency market, as banks are running on fiats, banks are indirectly forcing the government to block cryto currencies get into the country as banks are the main source of a country. This is the reason a country hesitates in adapting bitcoin or any other cryto currencies or hesitates to legalize it. And yes, taxes and scammers are the other main reasons to hold back in legalizing the crypto currencies.

Not just bitcoin instead, but also other digital currencies. the government prioritizes transactions with the use of local currency that is the government-regulated dollar.

Honestly, I am not going to support these corrupted governments. But sometimes, I think that they are right to ban the cryptocurrency. But I also feel that banning it is futile. So why not just legalize it and regulate it? They will get their taxes and I think people will pay taxes as long as it is not banned. So, people have to choose, either ban or tax. As for the scammers, I believe that it is not their fault. People are stupid who want to throw their money in the bin.

There are other reasons that could be attributed to the factors you mention above such as money Laundry from the developing countries of the world to the developed countries.

I think that this view is the main reason that we see a significant outflow of capital from bitcoin. Why do you need government permission to use bitcoin? Are you worried you won't be able to exchange your Satoshi for $ 100? Lol. The price of bitcoin rests on the capital of millionaires. They are attracted to bitcoin anonymity and deregulation. Legalization will lead to the fact that bitcoin will cost $ 1.

It depends on their country rules.. There is not necessary to legalize the cryptocurrency.. Because it is not like a fiat currency.. it only a online currency we can only use with electronically .. And also it's price is not stable like other..

That's true, The legalize or illegalize of bitcoin depend on the country rules, so now, you can see that they're only few countries legalize bitcoin officially, I said officially because there is some countries, which people didn't know yet if the bitcoin is legal or not. I think the reasons of Illegalize this crypto, because of the high potential of it or maybe because the high volatility of the price.

Yes, you right Sir. I think they forbid bitcoin to make the country better.

Can happen that some countries are afraid of Bitcoin and other tokens. They are pretty innovative, the technology isn't obvious and the concept of not having physical banknots and coins is scary.
The other possible reason - corruption. Possibly crypto and blockchain make corruption harder to survive

Major reason which I had analyzed is its decentralized and anonymous nature. Being anonymous, it is used to for many illegal activities like money laundering, illegal trades, terrorism and tax evasion etc. So govt is confused towards its legalization as it may shake the whole economy.

What you said about taxes for me its not an argument.I think solution is court,Every goverment's judges must define of its fundamental structures and aspects,they need to define its legal definition,After this legislative bodies will easily create regulative norms,Which I think need good enforcement mechanisms.
I've just seen International revenue's statement about this issue and I think they will regulate it more easily.By this statement citizens of America will be obligated to present crypto transactions because they think that crypto currency is not different form of money,Its so simple but also its another issue how good is this definition for the future and whats about mechanisms there will be fine(250000$ or jail)

Whether or not taxation is the reason behind banning Bitcoin, I think tax on crypto trading has had a large influence on the price since January. Especially in the US, where many people didn't realize there was a capital gains tax until Trump's new tax law.

if you please to correct me about the classification of bitcoin, bitcoin on the point of view of most governments it is not a currency but rather a security or investment, so the principle of taxation must be under gain on holdings rather than the value of the bitcoin itself.

The main reason behind this is tax and local fiat. Once bitcoin will accept by the government it faces tax problem and another thing is mainly local fiat will be affected. Due this bitcoin can be illegal in many countries. And more thing the government and banks are not only face the negative side of bitcoin. But there are so many positive sides.

Ive now gotten to know the reason why. Thanks

Crypto currencies has a volatile price, because it is influenced by demand in the market, it confuses the accountants in finding the tax formula for this :D


Anything about change will certainly have pro and opposite, I see this as a matter of course, anyways it will attract more business people to learn it, Bitcoin has become mainstream.

I think we need to support about this, Bitcoin's and crypto currencies are offering good change for financial freedom and investment, whereas in reality some people want to make profits by criminal way with scamming project. I think the regulation to secure our money from things like this is necessary.

I don't know if I'm so convinced by your three arguments here except for the second one.  Having a stable economy with a deflationary currency unit might pose a problem just in terms of how would you go about assigning wages to ordinary people in Bitcoin rather than fiat?  Central banks take into account a lot of things like population growth, inflation considerations, global economy considerations, etc. ... I'm not at all justifying the reason why the central banking system should be used, I'm just saying that there are other considerations when thinking about actually making Bitcoin the major payment everyone should accept.

This is an older article written in 2014, but it does a good job describing the problem at hand above.

https://www.economist.com/blogs/freeexchange/2014/04/money

Main reasons of illegalizing bitcoin - 1) People mistly don't know how it works and how it can change the world in a positive way 2) They are scared to accept something innovative and promising

There are no reasons except one - current society doesn't want to change itself. We have a pool  of reach people whi carry more than 70% of all world resources, they don't want to lose their power

all the reason taking up about illegalizing bitcoin can be true. in every country has different reason why they dont allow or legalize bitcoin in thier government. cryptocurrency is a good profit and good financial assistance.but, the country who dont allow crypto  are maybe they thing about the security of money may loss if they allow bitcoin in thier government

The reason for illegalizing bitcoin is already we know, when bitcoin is legalized by government it affects local fiat. And the government have to face a lot of tax problem that's the reason behind this.  Once bitcoin enters people forget to use local currency. And the value of local currecy will be no value. But some countries accept bitcoin and some not its depends upon the government of the countrie.

my favourite one - that bitcoin is forbidden in Turkey for being "bad" because of religious stuff

One of the key factors enabling the Bitcoin industry in India to grow rapidly such as China, South Korea and Japan is the legalization of Bitcoin as its tender and its legal currency. The central banks of the Philippines and Japan have also recently legalized Bitcoin as a legal tender, to help their local industries grow and allow general consumers to use bitcoin.

Yes, these are the main reasons on why they will banning it but there are other nations that are not against these issues like Japan and Germany in which using Crypto Currencies specially Bitcoin is free of tax. Their Banks are fully supported the Cryptos currencies too and Scam cannot penetrate because it is fully regulated. So we just hope that other countries that makes Bitcoin is illegal could cope with these two countries on how they deal Crypto without worrying the risks.

I would add in that list financing of different terroristic organizations and simple hiding money from taxes by corrupted politics and generally reach people.

Even this reason alone is enough for bitcoin to be in danger. But it seems to me that now These rich people are actively preparing to subjugate bitcoin. They are not sorry for the money invested if it helps to kill bitcoin. But if not, they also want to concentrate most of the coins in their hands.

Since we cannot control people to invest here and to do something with their coins, there are really something that is happening here in crypto and that is some people are using it in illegal way, and some people were trying to avoid tax which we should not if our law requires

All of these are depends on which country you are, there is some country ignored bitcoin just like people freely used bitcoin, just like what happens here in our country as of now we are enjoying using bitcoin without law implement or even to have tax.
Our government was quiet and no taking action in cryptocurrencies besides they have recognized bitcoin as one of currency that has transaction online. They warn people of the possible happens, Ponzi scheme, illegal activities and others that prohibited and against the law in our country.

As a cryptocurrency weight gains a significant amount, it would start to compete with the amount of regulated traditional money and this would reduce the effectiveness of government monetary policy. The rise in the value of bitcoins in this case would lead to deflation in the real market and the virtual currency causing devolving of real currencies.

There are lot of scams out there and a lot of people are victimized by those different kind of scams, so some countries are avoiding it before it is too late, but some countries are studying it first before they will gonna open bitcoin in the public again.

It is always the responsibility of the individual not to become a victim of fraud. It is wrong to shift responsibility to the government. But I am sure that the state cannot assume such responsibility. All the talk that the government forbids the use of cryptocurrencies to protect its citizens is a lie. Governments do not have a pragmatic interest in pursuing their goals and in ensuring the safety of their citizens.

Yeah we all have the right to investigate to a certain company or even if it was referred by a friend and relatives we are still the one who will make decision, so it is barely our fault if we did not make our part and that is to investigate or to ask some people about it.

It could also be the fact that the project started off as an open sourced code and decentralized public ledger. The fact that it broke traditional boundaries within the way we as a society, and collective operate, may well be the reason many countries ban it.
Not everyone lives within a Capitalist country.
   Bitcoin itself is just a medium, but the platform is built upon what some members of parliament would likely consider as an anarchist movement. I don't think everyone see's Bitcoin as just simple innovation put in motion, but a threat to the way society works.
   Some will consider the bright side, and embrace it with open arms, others will detest and reject it, cutting it's citizens off from benefiting from it. Rome wasn't  built within a day. So to, crypto will take time to become adopted. It will take a collectively  agreed upon stance, to bring about a mass adoption.
Just my two cents!

There's a lot of reasons why bitcoin is not legal. We use to make all things in legal, but in bitcoin, I think, it is not yet legal. For some purpose, this kind of situation, bitcoin is not yet popular for other people. We see a lot of illegal usage of bitcoin. There's always a way where bitcoin is not yet done for all the security and safety. For me, we should not yet legalize bitcoin, because, it is not yet complete or not yet safe for other people who does not have knowledge in bitcoin.

In every country, they have different reasons that they are considering why they come up with the illegality of bitcoin in their country. For me, one of the reason for that they don't want their people to be a victim of investment scheme, or the ICO scam as there are lot there who were already victim and they can't find yet solution to resolve that.

Yeah there are still many problems in bitcoin about scams, fraud, hacking and so forth. governments see bitcoin not from anonymous side only but there are many things that might harm the state and also their society. but fraud and hacking can be avoided by giving them the knowledge to secure their wallets properly. but the government seems still scared with bitcoin?

I support you in not having to legalize bitcoin. But the reason is not that people do not have knowledge about cryptocurrency and they need to be protected. The reason is that it is necessary to protect cryptocurrencies from the influence of the state. Manual control can be taken for Fiat but for bitcoin it's deadly.

There are many changes if bitcoin legalize, firstly a big effect on price bitcoin in the market and also government may take advantage of what bitcoins are. Legalization is good we have to do whatever we want in bitcoin, but that's the problem we can't control those people having bad interest in bitcoin due to illegalization they can do what they want.

Those things being mentioned are the common things which do arise around bitcoins existence because into its decentralized feature those things cant really be avoided yet people do have different mentality which they can done things illegally which will really oppose regulation and traditional laws in each country. Government would really still be scared yet they can able to control bitcoin directly, they might able to handle it indirectly but not on full scale.

Government wants to control this thing and I think the only reason is that, they can't make money if bitcoin continues. Well, they still failed to do that and in the end they just made a regulations that makes it more harder for investors to escape the government. Now better to follow the regulations than to be banned for good.

Professional investors don't mind regulations, and thus don't mind to operate under strict rules. I would say that regulations are the main reason these investors are flowing slowly but surely into this market.

Institutions are tied to very strict rules which largely still prevents them from entering this market right now, which is mainly due to how the governments fail to swiftly implement and update their current regulatory framework.

Regulations should have been set years ago already, and not just recently because this market has once again done what naysayers didn't expect to happen. Underestimating crypto is a stupid thing and they pay the price for it.

In short, those countries don't have the ability to control it. The blockchain technology also needs deep understanding instead of blaming it's problems that isn't caused by the technology itself but it's the people that made those problems.

There are so many reasons for illegalizing bitcoin. Because it enters in to the country it will affect local currency and people are use only bitcoin they forget to use local money. Another main reason is tax problem, for bitcoin money there is no tax. So the country would face economically bad situation. Banks are facing lot of problems due to bitcoin. Because people don't go for banks to invest. Invest in bitcoin will give more profits than bank.

This is true, the reason why government and other countries are threatened by cryptocurrency is because of scammers, they are putting investors at risk, and over millions of dollars are lost by people because of scam. Another thing is that, people's income on cryptocurrency investment and trading are not yet covered by tax law in some countries. That is why some countries are starting to either ban or regulate cryptocurrency investment.

Although  there is already a law regulation to protect people still we cannot eliminate scammers, just do your part to be a good citizen, if we caught someone we should be able to report it to the authority don't just keep silence, we are all anonymous here in forum so it is really hard for us to see scammers  here let us just be very careful.

I don't think the above reason would cause illegalizing. This is a business. Let banks and crypto show their market move in the market instead of banks forcing the authorities ban bitcoin and other crypto currencies. This seems a coward move. As everything became online now, scams are normal as like in normal paper world thieves being around. So lets take everything in a positive node and move about with right decision to grow the respected countries economy with crypto's adaption.

You can invest your savings in a Bank that goes bankrupt. This, too, can be regarded as fraud. What does the government say about this? Maybe they'll ban Fiat or maybe they'll ban banks? No. It won't happen. Governments are looking for a reason to ban cryptocurrencies because they can not fully control this asset.

As we see, bitcoin are becoming more and more popular each and every day. Legalizing bitcoin will affect our own earnings. There is always a reason why bitcoin is not yet legal. We know why legalizing is so difficult, reasons are the safety and security of our bitcoins. There’s a lot of bitcoin scammers and hackers that bitcoin can lead to have a lot of legal rules and rights

Main reason of doing that - fear that bitcoin will eliminate current financial relations and create a new ecosystem. It won't serve interests of many powerful people and will give them a push to claim bitcoin illegal

Even though the legalities of bitcoin hampered by these reason, the proper regulations could help the bitcoin economy rise even better. Despite of those scammers behind whose degrading the reputations of bitcoin, I don't think it will affect the legalization of bitcoin. As long as there will be proper education for people there would be no possible scams to happen hiding in the name of bitcoin. I've heard lately that people being scammed is through middleman who facilitate bitcoin investments, then why were those people trusted someone to handle their funds and yet having an account for direct trading site of each country can be done personally. So that makes it clear and generally we as people should be vigilant, and as an independent body we can help digital currency to be legalize around the world.

Bitcoin is a digital alternative to traditional currencies that are not regulated by any country or bank in the world. It does not have its own emission center, but is able to store all information about the sender and receiver of money. In this system, electronic coins and special financial evidence are used for all financial transactions as well as nonfinancial. it has become a very powerful reason to legalize bitcoin.

Do you understand what you're writing? All you have listed in your post are the reasons why bitcoin has never been legalized. But honestly, I don't want to. The government has never done anything good for the people. They know this and will therefore never allow people to have their own independent currency.

Business is the main motivation behind illegalizing Bitcoin. Crypto's growth has affected fiat's growth in the curency market. As banks and taxes are inter related to fiats / local currencies, black mark is brought to bitcoin to spoil its market name. This is common in business. So never mind if you are in crypto community. I don't find any reason behind calling bitcoin as illegal. This is complete a business.

I think there are other reasons that could be attributed to the factors you mention above such as money Laundry from the developing countries of the world to the developed countries.

The reason behind is bitcoin and blockchain technology is a new innovative platform in which the government legislators were not  yet ready on this or just take  it  aside because they thought or not  expect to the extent of its growth to put  into regulations it must  have  a thorough study before they can make into a law to govern the regulation of cryptocurrency.

Bitcoin is used in illegal activities. Indeed bitcoin is not made for illegal purposes, but the fact is that many illegal transactions now use bitcoin as a means of payment. In essence the activity of black market deepweb transactions all use bitcoin. This is because the nature of anonymous bitcoin transactions.

These are no longer 2011/2012/2013'ish times. Bitcoin has more than proven to not be anonymous, and thus a horrible tool for illegal transactions.

The 'problem' with Bitcoin is that transactions are recorded in the blockchain for ever once confirmed, and the blockchain as you probably also know is open for everyone to browse through, research, etc. Eventually you could be linked to certain transactions, because the 'proof' is present basically for ever, and you can't do anything about it. Unless you actually know how to properly remain under the radar, I would advice people to look for other alternatives (ie, privacy focused coins) when it comes to illegal transactions.

The more people believe in Bitcoin's anonymity, the more they will eventually land themselves into unnessary situations that could have been avoided.

Thank you, really good reviews!
I agree with the three points you mentioned.

Well, sometimes, I strongly disagree with the government's reason for making illegal bitcoins. I am increasingly seeing the greed of the government by trying making news and information overload about the negative side of bitcoin.

There arw so many reasons for illegalizing bitcoin, and it purely depends upon the countries. Many countries are afraid that if they accept bitcoin it will be used for illegal purposes. So many false transactions are done using bitcoin payment. Some countries afraid that if they accept bitcoin it will dominate the local fiat. There is no valuve for local currency. People use only bitcoin instead of local currency. At the same time some countries would allow bitcoin in their country. This will bring some changes to other countries also.

Its just a complete competition between local currencies and crypto currencies. Though the authorities know that the crypto currencies would enhance their economy, they don't wish to allow the into their countries fearing that their local currencies would loose its values. There is no strong reason for legalizing Bitcoin. Everyone requires currencies and why should a currency given a name as legal or illegal.

It's not crypto making sure fiat currencies are losing value, but the printing habits being a toxic element of this system. On top of that, governments don't really have to fear crypto currencies at this point in time. Bitcoin will only form a problem if we (as in the mass) actually start using it as currency, and that's something I can't see happen in the coming years. As long as people keep using Bitcoin as investment, governments won't have anything to worry about, which is a good thing. It will allow Bitcoin and everything related to crypto to keep growing and that's what we all want to happen.

Overall I agree with you that taxes, banks, and scammers are the reasons that make bitcoin illegal. But in addition, free bitcoin is used so it is very vulnerable to criminal acts such as money laundering and terrorist acts. That's what makes the government ban bitcoin. In essence implementing the principles of prudence, safeguarding business competition, risk control and consumer protection is the reason of illegalizing bitcoin.

law enforcement agencies and regulators are still exploring this phenomenon. Actually there is still a question that hinders the existence of this Bitcoin. so the legality of bitcoin is still questionable.

There is another reason that bitcoin does not have an official administrator, so it is likely to be a tool to support crime. I do not know, but I think that's good in anticipation of the government.

I agree with you there, a lot are sticking to the fact of illegalizing bitcoins in some nations
due to the fact that they can't or refuse to make it legal unless there is something in it
for them. Business or influence, it's all about profit and position. Gambling is legal and simple
currencies like bitcoins are having a hard time making it to the legal side. Innovation having
a hard time by people and made to look illegal always seems fishy and conspicuous to me. 

Taking control of money laundering activities is another reason why many countries want to discourage bitcoin as they are unable to control money supply in this economy. But here the problem is even with a ban there is no way you can catch people doing transactions in a bitcoin private key. They will still be untraceable and unaffected such bans. So money laundering and evasion of taxes will still carry on and there is really nothing any country can do about it because this doesn't really comes under jurisdiction. You have to ban internet if you want to ban such transactions which is impossible.

Money laundering does happen with fiats as well. Being a currency, obviously a door is open for both activities as legal and illegal. I would say, though we have number of reasons to deny crypto, we have number of reason to accept cryptos. Its just the competition between fiats and crypto currencies in the money market. Bitcoin and other crypto currencies are forbidden to make the fiats value grow high or keep its value up amongst investors and people. I would appreciate crypto being legalized in countries to grow their economy standard.

Not every country declared bitcoin as illegal some countries did so. I think major reason for declaring bitcoin illegal is Taxes, Banks and Scammers. It will hard for government to get tax from bitcoin users. It hard for government to categorize bitcoin for their taxation whether it would be on a passive income or not because BTC is also a currency. That's why its better for them to ban it. Bitcoin will effect Banks people will exchange many without using them. Scammers doing fraud which is also a thread for people and it is hard for government to stop them.

Don't believe that. It's nothing more than an excuse to punish Bitcoin because of how much of a threat they consider it to be. Governments are very desperate, and we keep noticing that with how they try to slow its growth.

For the first time in decades governments have to worry about something that potentially can disrupt their system, and it feels really good. We can choose to no longer be their slave, and that wasn't possible before Bitcoin.

This change will eventually force governments to show more respect and appreciation for what we can offer. It's no longer what you as citizen can do for the government, but what can the government do for its citizens.

At the end of the day the government is there to serve the people, and not vice versa. It has become a total monster.

in my opinion everything is obvious here ... if you had your own business and you owned it alone, and all people would buy only your goods and use only your services, but suddenly something appears more profitable for people and they start to enjoy  no longer your services, you lose money.  but who will like it? ... Any state is a business and they do not want to share, and certainly they do not want people to be richer and not work for them.