Why Bitcoin is not legal in all countries?

[Jewan420]

Many countries around the world have restrictions on the use of Bitcoin and cryptocurrency, but why? Can Bitcoin legalization cause economic damage to any country?

From my understanding, Bitcoin is a decentralized currency. Most of our Bitcoin transactions are done through decentralized wallets that are out of sight of the government. That means you can easily buy, sell and exchange bitcoins without government intervention. Since Bitcoin exchange is outside the eyes of the government, unethical activities such as money laundering, concealment of black money can be easy for the government. This can increase money laundering in a country, which can destabilize a country's economy.
My one question to the governments is that. The crimes that are being committed through Bitcoin or the governments are blaming those crimes are also being organized through fiat. So why is Bitcoin being blamed? Criminals will commit crimes regardless of whether it is fiat or bitcoin. But for those reasons we the people of the whole world can never accept a good invention of technology negatively. Rather, the public can benefit from the innovative technology only if the governments have good knowledge about the use of this technology and implement it in their country. Today Bitcoin is a harbinger of economic liberation so if we focus on the positives rather than the negatives we will be able to reap the benefits faster.

Do you think governments are reluctant to legalize bitcoin due to hacking or other reasons or lack of knowledge for bitcoin to be legalized in all countries? What are the government's arguments for not legalizing Bitcoin?

[pakhitheboss]

Many countries around the world have restrictions on the use of Bitcoin and cryptocurrency, but why? Can Bitcoin legalization cause economic damage to any country?

I am assuming that you want Bitcoin to become a legal tender. It has become in El Salvador but they have not ditched their fiat. It is impossible for any country to legalize as a legal tender as it is highly risky and it cannot be controlled by the government.

snip..

The next few paragraphs of your OP were a wall of words and I do not entertain such kind of presentation. Moreover I feel that you wrote the final paragraph using an AI. I am warning you that such habits cannot be tolerated. Please ensure you do not repeat it.

[Jewan420]

I am assuming that you want Bitcoin to become a legal tender. It has become in El Salvador but they have not ditched their fiat. It is impossible for any country to legalize as a legal tender as it is highly risky and it cannot be controlled by the government

Despite Bitcoin's flourishing and success, the argument that governments have not legalized Bitcoin is not really a big barrier to Bitcoin adoption. I wanted your opinion on this and other issues.I may fail to convey these points in my presentation.

The next few paragraphs of your OP were a wall of words and I do not entertain such kind of presentation. Moreover I feel that you wrote the final paragraph using an AI. I am warning you that such habits cannot be tolerated. Please ensure you do not repeat it.

I will follow your words and try to present better in future. But I can say with certainty that I have not used any AI. This is written from my own experience ‍and thought. I am truly sorry if you feel that way.

[mindrust]

In my country it is prohibited to use any crypto as a payment method. The government don’t recognize crypto as a currency. They don’t offer any legal support if you buy something with crypto and get scammed by the seller. It is because every business keeps their books in their local currency or the USD and crypto would make the taxation calculations a mess and there isn’t only bitcoin. There are many others and their prices are crazy volatile. No sane accountant/taxation agent can go through that shit. I can understand why my gov banned crypto payments because of that. However banning it completely doesn’t make sense at all. If any country still does that then it is a crap country.

[undeadbitcoiner]

Yes of course there are restrictions in many countries but don't forget that BTC is legal in many countries and El Salvador has BTC as the Nations legal tender but let's explore the different views of countries on BTC and the reasons behind its potential economic impact:
Governments around the world are struggling with how to regulate BTC and other cryptocurrencies, the reasons for the ban could be many which no one can articulate except the person who banned it but here are some of the reasons I think it could be,

BTC and other cryptocurrencies challenge the existing financial systems Given that the first thing that creates a threat to the government, until now crypto is still in its early days, it seems normal to look for sustainability, the association of crypto with fraud and concerns about the safety of investors have led regulators to stay away from crypto.

The strong possibility that BTC and cryptocurrencies can play a supporting role in tax evasion and illegal activities has always raised a red flag over crypto, fueled by the Dark Web and Silk Road). Central banks want stability, but we all know that digital stability is erratic, which is a source of concern for central banks and governments, some of which see cryptocurrencies as a potential threat to their economic sovereignty.

Bitcoin legalization or BAN can have both positive and negative effects, let's start with the positive
- Legalization can increase access to finance for the unbanked. As an example I can take India, which I have visited 3-4 times (90% of villages in India are unbanked and 100 crores + cannot get in touch with public banks).
- Bitcoin makes it easier to transact across borders and can reduce fees and time and bridges like simple payment gateways.
- Adoption of cryptocurrencies allows different countries to attract investment, increase national income by encouraging mining and encourage innovation (El Salvador can be taken as an example where Bitcoin mining is rapidly being transferred from other countries and new ones are continuing to open.

Now coming to the most important part which is the downside and its challenges and risks,
- The nation can protect itself from the devaluation of the Bitcoin currency, it reduces the power of central banks in monetary policy and can lead to national collapse.
- The long-term effects of legalization are still unknown, especially for early adopters such as El Salvador (in my personal opinion, Bitcoin adoption in El Salvador has become widespread and will attract new countries as well, but we are still in the early stages, so don't forget that tomorrow, whatever Maybe we can only hope that tomorrow will be better for crypto).
- Legitimacy must strike a balance between innovation and malice

While writing all this I would like to finally add, BITCOIN is here to stay and its financial freedom and will be legal tender globally but we don't know we will still be there to feel it.

[avikz]

Do you think governments are reluctant to legalize bitcoin due to hacking or other reasons or lack of knowledge for bitcoin to be legalized in all countries? What are the government's arguments for not legalizing Bitcoin?

Money laundering and terrorism financing! These two arguments are always given by the governments who have not legalized Bitcoin yet.

But the reality is very different - governments cannot control bitcoin! I believe that's the strongest reason why governments are reluctant to legalize bitcoin. Don't listen to the other reasons given by the governments because they are not telling you the truth!

[zasad@]

Bitcoin statistics.Where are Bitcoins now?
https://bitcointalk.org/index.php?topic=5487893
Approximately 50% of bitcoins are in the shadow zone and their owners are unknown. If a country legalizes bitcoin and allows free exchange of bitcoin for national currency, then the government is obliged to bear huge risks if the price of bitcoin falls sharply.

[virasog]

If a country legalizes bitcoin and allows free exchange of bitcoin for national currency, then the government is obliged to bear huge risks if the price of bitcoin falls sharply.

On the other hand, if the bitcoin price remains stable or pumps, it will boost the economy that adopts bitcoins. Since bitcoin is in up trend since it was invented and its price keeps on increasing over time, the countries benefit from it.
The country's rulers want to keep the money in their control and that is the reason they are afraid of Bitcoin because they can't print it or get it for free (as they can from paper money). To keep their authority, they will never adopt Bitcoin.

[zasad@]

If a country legalizes bitcoin and allows free exchange of bitcoin for national currency, then the government is obliged to bear huge risks if the price of bitcoin falls sharply.

On the other hand, if the bitcoin price remains stable or pumps, it will boost the economy that adopts bitcoins. Since bitcoin is in up trend since it was invented and its price keeps on increasing over time, the countries benefit from it.
The country's rulers want to keep the money in their control and that is the reason they are afraid of Bitcoin because they can't print it or get it for free (as they can from paper money). To keep their authority, they will never adopt Bitcoin.

Bitcoin is already accepted and traded on many major major major exchanges around the world.  Why would the government be afraid of bitcoin if they can train citizens to use centralized services and then the whole point of bitcoin is lost?

[virasog]

If a country legalizes bitcoin and allows free exchange of bitcoin for national currency, then the government is obliged to bear huge risks if the price of bitcoin falls sharply.

On the other hand, if the bitcoin price remains stable or pumps, it will boost the economy that adopts bitcoins. Since bitcoin is in up trend since it was invented and its price keeps on increasing over time, the countries benefit from it.
The country's rulers want to keep the money in their control and that is the reason they are afraid of Bitcoin because they can't print it or get it for free (as they can from paper money). To keep their authority, they will never adopt Bitcoin.

Bitcoin is already accepted and traded on many major major major exchanges around the world.  Why would the government be afraid of bitcoin if they can train citizens to use centralized services and then the whole point of bitcoin is lost?

That is true, even when anyone buys Bitcoin through Bitcoin ETF, he is not even have an actual Bitcoin. That is even more worse than having Bitcoin on the centralized exchange. Seems like the government has already significant control over how the bitcoin adoption will take place.

By the way, there are also technological and Infrastructure limitations too when we say that bitcoin will be used everywhere. Even if a government can promote centralized services still there is a substantial infrastructure and technological shift required like you need to put a bitcoin wallet / machine even in villages and small coffee shops etc. The centralized systems also face their own risks, such as data breaches and vulnerabilities.

[zasad@]

If a country legalizes bitcoin and allows free exchange of bitcoin for national currency, then the government is obliged to bear huge risks if the price of bitcoin falls sharply.

On the other hand, if the bitcoin price remains stable or pumps, it will boost the economy that adopts bitcoins. Since bitcoin is in up trend since it was invented and its price keeps on increasing over time, the countries benefit from it.
The country's rulers want to keep the money in their control and that is the reason they are afraid of Bitcoin because they can't print it or get it for free (as they can from paper money). To keep their authority, they will never adopt Bitcoin.

Bitcoin is already accepted and traded on many major major major exchanges around the world.  Why would the government be afraid of bitcoin if they can train citizens to use centralized services and then the whole point of bitcoin is lost?

That is true, even when anyone buys Bitcoin through Bitcoin ETF, he is not even have an actual Bitcoin. That is even more worse than having Bitcoin on the centralized exchange. Seems like the government has already significant control over how the bitcoin adoption will take place.

By the way, there are also technological and Infrastructure limitations too when we say that bitcoin will be used everywhere. Even if a government can promote centralized services still there is a substantial infrastructure and technological shift required like you need to put a bitcoin wallet / machine even in villages and small coffee shops etc. The centralized systems also face their own risks, such as data breaches and vulnerabilities.

But if Venezuela was able to make a custodial wallet then what's the problem?


I will show you my personal account of the largest bank in Russia - Sberbank.
In my personal account I can buy dozens of currencies and sell them, I can buy valuable metals and sell them.
I can buy any shares of companies in my country.
And so it is with most banks. Any bank will gladly add popular currencies to this list and will even allow you to pay with them, but this is prohibited by law.

I don't know how things are in your country, but most Russian banks will add cryptocurrencies to the user's personal account in a few days, the only problem is the authorization of this operation by the central bank.

[BlockExplorer24]

Many countries around the world have restrictions on the use of Bitcoin and cryptocurrency, but why? Can Bitcoin legalization cause economic damage to any country?

From my understanding, Bitcoin is a decentralized currency. Most of our Bitcoin transactions are done through decentralized wallets that are out of sight of the government. That means you can easily buy, sell and exchange bitcoins without government intervention. Since Bitcoin exchange is outside the eyes of the government, unethical activities such as money laundering, concealment of black money can be easy for the government. This can increase money laundering in a country, which can destabilize a country's economy.
My one question to the governments is that. The crimes that are being committed through Bitcoin or the governments are blaming those crimes are also being organized through fiat. So why is Bitcoin being blamed? Criminals will commit crimes regardless of whether it is fiat or bitcoin. But for those reasons we the people of the whole world can never accept a good invention of technology negatively. Rather, the public can benefit from the innovative technology only if the governments have good knowledge about the use of this technology and implement it in their country. Today Bitcoin is a harbinger of economic liberation so if we focus on the positives rather than the negatives we will be able to reap the benefits faster.

Do you think governments are reluctant to legalize bitcoin due to hacking or other reasons or lack of knowledge for bitcoin to be legalized in all countries? What are the government's arguments for not legalizing Bitcoin?

Hey,

The primary reasons governments hesitate to legalize Bitcoin often include concerns about money laundering, tax evasion, and economic instability. Bitcoin's decentralized nature makes it harder for authorities to monitor and regulate transactions. However, it's important to recognize that these issues exist with fiat currencies too. Governments may also lack understanding of the technology, which hinders informed decision-making. With better education and clear regulations, Bitcoin's benefits could be more widely realized. Let's keep pushing for a balanced approach!

[YOSHIE]

Do you think governments are reluctant to legalize bitcoin due to hacking or other reasons or lack of knowledge for bitcoin to be legalized in all countries? What are the government's arguments for not legalizing Bitcoin?

The way governments and countries think is not the same in making policies in several matters, especially when it comes to digital money, the economy, investment, interest rates and so on, some countries don't care about the origin of Bitcoin, as long as he comes to that country and benefits them from the economic sector, legal is not a problem for them, as long as it does not conflict with the laws in force in that country and all risks are at their own risk.

In some other countries they think a lot of negative things about Bitcoin, 70% of them think they are doubtful, even though they know that Bitcoin can benefit them in transactions and there are many other reasons that make them not dare to legalize it, because the Bitcoin factor is no man's land, the point is: even though many countries do not apply legal laws to Bitcoin, currently all countries do not prohibit Bitcoin, Bitcoin can be used anywhere, but at your own risk, meaning it is legal, not illegal, no.

[Z-tight]

Do you think governments are reluctant to legalize bitcoin due to hacking or other reasons or lack of knowledge for bitcoin to be legalized in all countries? What are the government's arguments for not legalizing Bitcoin?

BTC is legal in most countries, and a legal tender in only one. Only a few countries have a total ban on BTC and different countries regulate it in their own way, i.e some accept it as a financial instrument, but ban it as a payment option. Centralized government rule in their own way, and a decentralized network is not going to be too attractive to them, some countries also purport that they are protecting their citizens from crypto scams, but more scams happen with fiat.

[Solosanz]

It's the same like why there are bad and good people in this world, anyone can do whatever they like and you can't control it.

The president can add, delete and change the regulations on their country, whatever the reason or excuse, they just don't want to make Bitcoin legal.

While writing all this I would like to finally add, BITCOIN is here to stay and its financial freedom and will be legal tender globally but we don't know we will still be there to feel it

Financial freedom is for people who have some amount of money (preferably in investment) that make you can live without need to work, if you only own little amount of Bitcoin, it doesn't enough to reach financial freedom.

[zasad@]

Bitcoin is not legal in all countries due to concerns over financial stability, regulatory challenges, and potential misuse for illegal activities. Each country’s stance on Bitcoin varies based on these factors.

Everything forbidden has a very strong rise in popularity. Bitcoin is very reckless to use in criminal activities, because criminal case files are not available to the public, while blockchain is available to everyone and any enthusiast or any company that analyzes blockchain can conduct an independent investigation and the criminal will be found in 5 years. Companies are learning to fight the mixer algorithms and unravel these tangles of data.

[jonathanmoore858]

Bitcoin is not legal in all countries due to a combination of regulatory uncertainty, concerns about financial stability, and potential misuse. Many governments are still developing frameworks to manage and regulate cryptocurrencies, leading to hesitancy or outright bans in some places. Bitcoin’s price volatility raises concerns about financial stability and economic disruption, while its potential for illicit use—such as money laundering and fraud—poses significant risks. Additionally, issues related to consumer protection, such as the potential for financial loss from hacking or fraud, and the environmental impact of energy-intensive mining operations, further complicate its acceptance. Each country’s stance on Bitcoin is influenced by its specific economic and regulatory context, resulting in a patchwork of legal approaches worldwide.

[SuperBitMan]

The reason Bitcoin is not legal in other countries is because they want to avoid criminal activity, when you send money through Bitcoin you can't trace the sender or The receiver, a lot of criminal's uses Bitcoin to receive money and you can't trace them.
So some countries see Bitcoin as something that promote crime.
Some countries don't also accept Bitcoin because they feel Bitcoin will damage there economy, they feel if people don't use there currency again there economy will fall.

This are few reasons why some countries don't want to make Bitcoin legal in fact in some countries is made illegal and will be arrested and prosecuted if Caught using.

[Dave1]

The reason Bitcoin is not legal in other countries is because they want to avoid criminal activity, when you send money through Bitcoin you can't trace the sender or The receiver, a lot of criminal's uses Bitcoin to receive money and you can't trace them.
So some countries see Bitcoin as something that promote crime.

Just to be clear, Bitcoin transaction are not anonymous per see.

Some countries don't also accept Bitcoin because they feel Bitcoin will damage there economy, they feel if people don't use there currency again there economy will fall.

This are few reasons why some countries don't want to make Bitcoin legal in fact in some countries is made illegal and will be arrested and prosecuted if Caught using.

I don't think that Bitcoin is too big to affect or damage one's economy, it's a separate entity from the government itself. Bitcoin is not accepted by government because they don't have control over it. But there are nations that are in the middle or gray area, so they accept it, but then there are no legality. I.E. if you are have scammed then the government can't protect you.

[Semen222]

So if you are a government employee and you have a couple of bags of money lying around under your bed, then why not throw it all into BTC? This works not only in ordinary people VS government.