Legalities of Bitcoin

[Gloverwrt]

Governments from most nations have had their say on the legality of bitcoin (cryptocurrencies) in their states.
Bitcoin users should be aware of the status of bitcoin in their countries, and also up to date with any changes made.

The status of bitcoin is not always a straightforward option of it being legal or illegal. Countries have different levels of regulation on the circulation and use of bitcoin in their nation;

- Legal and unregulated : This countries has declared bitcoin legal in its states, with no form of regulation;
France
Chile
Brazil
Denmark
Hong Kong
Malaysia
Poland
Switzerland
Italy
Denmark
Turkey
Japan
Ireland
Venezuela
Hungary
Malaysia
Mexico
Ukraine.
Most of this countries advise its citizens on the risk involved in trading, selling and circulation of bitcoin, and advises against it without putting any restrictions.
In Switzerland, bitcoin is wholly accepted and its growth is encouraged by the government.
Portugal has made no announcements and has not acknowledged or restricted bitcoin. It is this far being circulated.
In South Africa, bitcoin is accepted but can not be used as a form of payment.
In Russia, bitcoin was declared 'legal' in 2016, but there is a level of restrictions, and it cannot be used as a form of payment. And bitcoin accounts can be blocked if discovered.

- Legal and subject to taxation: Bitcoin is legal in these countries but different forms of VAT are paid to the government for purchases made.
Isreal
Austria
Germany
Finland
Norway.


- Legal and regulated (also subject to taxation) : This countries have set up bodies to regulate the use of bitcoin in their states, and any establishment utilizing bitcoin has to register under the sector.
United States of America
Canada.
In USA the regulatory body is the https://www.fincen.gov
Thailand
Vietnam (in Vietnam it is legal to trade or hold bitcoin, but illegal to use it as a payment tool
In Philippines, cryptocurrency is also legal but regulated. This is an official publication on the status of VC, virtual currency http://www.bsp.gov.ph/publications/media.asp?id=4575

- Illegal and banned: The sales, purchase and circulation of bitcoin is explicitly banned in this states. And it is a crime to be involved in bitcoin, merchants, traders or investors.
This countries include;
China
Egyot
Morocco
Iran
Taiwan
Nepal
Indonesia
Pakistan
Columbia
Bolivia
Algeria
India (India is trying to curb the circulation of bitcoin, but are interested in the blockchain technology and it's other applications)
Saudi Arabia
Bangladesh.

Any information not available here can be found in https://en.m.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory.

The status of bitcoin in these countries is constantly changing so always stay updated on your governments' stance on bitcoin.

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[Vaflia]

I would like to add that bitcoin is also undesirable in Russia. There is no official law on regulation, but if the Bank suspects you of buying / selling cryptocurrencies, it can block your account.

[Gloverwrt]

I would like to add that bitcoin is also undesirable in Russia. There is no official law on regulation, but if the Bank suspects you of buying / selling cryptocurrencies, it can block your account.

That's right. Just added it.

[avikz]

The list of also available in wikipedia so don't want to talk about the list, but I want to point out that how the mentality of a government can ruin a nation and at the same time can set forward for prosperity.

Legal and regulated countries:
France
Chile
Brazil
Denmark
Malaysia
Poland
Switzerland
Italy
Denmark
Turkey
Japan
Ireland
Venezuela
Hungary
Malaysia
Mexico
Ukraine.

As you can see a majority of the countries in this list are considered as the first world country. They have a progressive mentality and that is directly reflecting in their GDP or financial prowess. Now look at the second list.

China
Egyot
Morocco
Iran
Taiwan
Nepal
Indonesia
Pakistan
Columbia
Bolivia
Algeria
India

You will also see some financial superpowers in this list but the majority of them are still considered as a third world country with no significant GDP contribution. Also majority of the countries in the second list are the lowest scorer of "Human Development index". So there is no holistic growth due to the backward thinking governments. India needs a special mention here because a major percent of wealth is controlled by only 0.9% of the citizens and 72% of Indians are still falls below the poverty line! They fear the opportunities while opportunity comes knocking at the door!

[dothebeats]

Are those countries with certain circular/memorandum from their central bank regarding bitcoin and cryptocurrencies count as a form of 'legality' or even 'formality' in this case? If so, the Philippines would be one of them. Only recently, people have been receiving certain bans and suspension on their accounts on a prominent exchange due to the BSP (Bangko Sentral ng Pilipinas or the Central Bank of the Philippines) memo regarding fraud and anti-money laundering concerns. This particular publication expresses the BSP's concern regarding the rise of bitcoin and other cryptocurrencies, so the Philippines should somehow be on that list.

[Gloverwrt]

I think it's that the first world countries see the writing on the wall and don't want to lose out on a possible silicon valley 2. The lower list sees crypto as a challenge to their corruption and authority they don't want things to change and will keep it down.

China is an exception. The Chinese government is well aware of the potential in cryptocurrency, but want to utilize it indigenously.
I think that's why it created it's own digital currency.

Are those countries with certain circular/memorandum from their central bank regarding bitcoin and cryptocurrencies count as a form of 'legality' or even 'formality' in this case? If so, the Philippines would be one of them. Only recently, people have been receiving certain bans and suspension on their accounts on a prominent exchange due to the BSP (Bangko Sentral ng Pilipinas or the Central Bank of the Philippines) memo regarding fraud and anti-money laundering concerns. This particular publication expresses the BSP's concern regarding the rise of bitcoin and other cryptocurrencies, so the Philippines should somehow be on that list.

Added

[NeuroticFish]

As you can see a majority of the countries in this list are considered as the first world country. They have a progressive mentality and that is directly reflecting in their GDP or financial prowess. Now look at the second list.

There are different "directions" taken by the governments.

The normal ones have recognized and somehow regulated crypto. Some found the opportunity to earn some more money/taxes for their county, some others preferred to encourage the businesses accept crypto.

Then there are the countries with problems. Most of them are so busy with the corruption and other similar issues they didn't even get to understand what's going on with this bitcoin thing.

Then there are the countries afraid of the change, countries looking what others do and possibly copying that, but with great delays.



My country is in the corruption group. Depending how you are interpreting the law, you have to pay certain taxes or not for Bitcoin trading. But everything is so complicated (to favor corruption) almost nobody cares, since whatever you do, it'll be wrong and you'll have to bribe the ones coming to check you up. And the government is busy weakening the anti-corruption laws, not with going forward, handle Bitcoin and so on.

[tegarp90]

Bitcoin is not illegal in indonesia, but just banned for buying/selling something in bitcoin.
But for owning and trade it with rupiah it's okay, even there is official indonesian crypto exchange called indodax

[TravelMug]

Weird, I'm not seeing:

1. Malta - which is very friendly to crypto. As far as I know Binance and OKex already moved their HQ in that country.
2. Singapore - another crypto hub in Asia. https://bitcoinist.com/singapore-fully-embrace-cryptocurrencies/
3. Tigers of Baltic - Lithuania, Latvia and Estonia, https://news.bitcoin.com/bitcoin-payments-are-on-the-rise-in-the-baltics/
4. Marshall Islands - https://www.newsbtc.com/2018/05/11/marshall-islands-make-cryptocurrency-legal-tender-2018-optimistic-outlook/

[lepbagong]

I would like to add that bitcoin is also undesirable in Russia. There is no official law on regulation, but if the Bank suspects you of buying / selling cryptocurrencies, it can block your account.

In my country bitcoin is not recognized as used as payment but does not prohibit other transactions, because the regulations for this have not been made and feared would be detrimental to those who conduct transactions as well as the country responsible.

[oppasong]

in my opinion it is one of the big losses for a country that does not accept or legalize bitcoin, in the case that bitcoin can help a country in terms of economy, just an example of a country that accepts bitcoin is definitely a very advanced and developing country in any way because it has been proven up to now if the country accepts bitcoin, the country will certainly advance and develop.

[btc_angela]

in my opinion it is one of the big losses for a country that does not accept or legalize bitcoin, in the case that bitcoin can help a country in terms of economy, just an example of a country that accepts bitcoin is definitely a very advanced and developing country in any way because it has been proven up to now if the country accepts bitcoin, the country will certainly advance and develop.

There are really a lot of advantages if a country started to adopt and legalises bitcoin. But the fact that they think that bitcoin is so disruptive, (well that's accdg to them) we might still see some countries who doesn't want it. But for those mentioned above who chooses to regulate and embrace it, sooner or later we will see how those nations slowly grows their economy because of crypto or blockchain technology.

[neo444]

Also Tunisia don't accept bitcoin and it is ilegal to use it and buy by it  anything you want

[Dudeperfect]

India (India is trying to curb the circulation of bitcoin, but are interested in the blockchain technology and it's other applications)

It is true that the current government is against Bitcoin and cryptocurrencies but the final decision is to be made by the Supreme Court of India. The case is ongoing and we can expect the decision anywhere within a month, the domestic exchanges are trying their best to explain the side of crypto community in the supreme court.

[pakhitheboss]

The ratio of countries that have declared Bitcoin as Legal and unregulated is higher in comparison to Illegal and banned.

The worst part is that all of the South Asian countries have declared Bitcoin as Illegal and banned except India.

In India it is legal to trade and hold bitcoin, but it is illegal to use local Banks to convert Cryptos to Fiat. Indian goverment is interested in the blockchain technology and has also plans to create its own Crypto.

[Marcel555]

A huge number of countries are quickly identifying the potential OK cryptocurrency and the block ledger system.
I believe the most impact is felt by the citizens as it gives them a key to self sustainance and entrepreneurship.
All the gov't has to do is declare it legal.

[reck1ess]

The list of also available in wikipedia so don't want to talk about the list, but I want to point out that how the mentality of a government can ruin a nation and at the same time can set forward for prosperity.

Legal and regulated countries:
France
Chile
Brazil
Denmark
Malaysia
Poland
Switzerland
Italy
Denmark
Turkey
Japan
Ireland
Venezuela
Hungary
Malaysia
Mexico
Ukraine.

As you can see a majority of the countries in this list are considered as the first world country. They have a progressive mentality and that is directly reflecting in their GDP or financial prowess. Now look at the second list.

China
Egyot
Morocco
Iran
Taiwan
Nepal
Indonesia
Pakistan
Columbia
Bolivia
Algeria
India

You will also see some financial superpowers in this list but the majority of them are still considered as a third world country with no significant GDP contribution. Also majority of the countries in the second list are the lowest scorer of "Human Development index". So there is no holistic growth due to the backward thinking governments. India needs a special mention here because a major percent of wealth is controlled by only 0.9% of the citizens and 72% of Indians are still falls below the poverty line! They fear the opportunities while opportunity comes knocking at the door!

I didn't knew that India banned bitcoin or they make bitcoin illegal on their country since i knew many Indian people who uses this cryptocurrency. Well this is a very informative thread. Good job.

[Ucy]

This doesn't really matter in my opinion. I think the governments will eventually realize that this is beyond their control uless they want to take a tougher approach.
 It makes no sense to ban Cryptocurrency same way it makes no sense to ban Precious Metals like Gold. They cannot successfully ban Cryptocurrency anyway. China have tried it, seems they failed.

I think Legalization of  Cryptocurrency will only lead to complacency in Cryptocurrency community, with more dependent on Centralized exchanges and less focus on decentralized ones. Dependent on centralized exchanges means they will have strong control over Cryptocurrency and can manipulate or censor things as they wish.

[xlmlover]

in Indonesia BI (Bank Indonesia) does not stipulate regulations that specifically prohibit the use of Bitcoin. This means that Bitcoin owners can still freely transact with that currency. It's just that, there is no legal protection in case of cases such as theft or fraud involving the virtual currency

[Diced90]

Governments from most nations have had their say on the legality of bitcoin (cryptocurrencies) in their states.
Bitcoin users should be aware of the status of bitcoin in their countries, and also up to date with any changes made.

The status of bitcoin is not always a straightforward option of it being legal or illegal. Countries have different levels of regulation on the circulation and use of bitcoin in their nation;

- Legal and unregulated : This countries has declared bitcoin legal in its states, with no form of regulation;
France
Chile
Brazil
Denmark
Hong Kong
Malaysia
Poland
Switzerland
Italy
Denmark
Turkey
Japan
Ireland
Venezuela
Hungary
Malaysia
Mexico
Ukraine.
Most of this countries advise its citizens on the risk involved in trading, selling and circulation of bitcoin, and advises against it without putting any restrictions.
In Switzerland, bitcoin is wholly accepted and its growth is encouraged by the government.
Portugal has made no announcements and has not acknowledged or restricted bitcoin. It is this far being circulated.
In South Africa, bitcoin is accepted but can not be used as a form of payment.
In Russia, bitcoin was declared 'legal' in 2016, but there is a level of restrictions, and it cannot be used as a form of payment. And bitcoin accounts can be blocked if discovered.

- Legal and subject to taxation: Bitcoin is legal in these countries but different forms of VAT are paid to the government for purchases made.
Isreal
Austria
Germany
Finland
Norway.


- Legal and regulated (also subject to taxation) : This countries have set up bodies to regulate the use of bitcoin in their states, and any establishment utilizing bitcoin has to register under the sector.
United States of America
Canada.
In USA the regulatory body is the https://www.fincen.gov
Thailand
Vietnam (in Vietnam it is legal to trade or hold bitcoin, but illegal to use it as a payment tool
In Philippines, cryptocurrency is also legal but regulated. This is an official publication on the status of VC, virtual currency http://www.bsp.gov.ph/publications/media.asp?id=4575

- Illegal and banned: The sales, purchase and circulation of bitcoin is explicitly banned in this states. And it is a crime to be involved in bitcoin, merchants, traders or investors.
This countries include;
China
Egyot
Morocco
Iran
Taiwan
Nepal
Indonesia
Pakistan
Columbia
Bolivia
Algeria
India (India is trying to curb the circulation of bitcoin, but are interested in the blockchain technology and it's other applications)
Saudi Arabia
Bangladesh.

Any information not available here can be found in https://en.m.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory.

The status of bitcoin in these countries is constantly changing so always stay updated on your governments' stance on bitcoin.

That is a well detailed break down of the different regulations or legalities of crypto generally, with particular effect added to BTC. Thanks for compiling this, I'm sure who ever comes across it will find it somewhat helpful.