Despite the growth of bitcoin why haven't it been legalized by many nations?

[coupable]

Major reason is tax. The government is having a hard time to tax bitcoin that’s why they are having a hard time justifying the use of bitcoin in their country.

I don't believe that taxation is the main obstacle to legalize Bitcoin in many countries because some countries have successfully set legislation to tax Bitcoin holdings and daily use with countries recognized bitcoin as a tender asset. In other words, any example can be followed and applied by the government willing to legalizing bitcoin use.
Governments always looking for new activities to apply taxation, but with bitcoin it can't apply taxation because they don't recognize it. Why they delay recognition despite it will generate more revenues from taxation? Simple because of decentralized nature of the blockchain which doesn't allow them to controle everything as they used with Fiat money.

[Myleschetty]

Major reason is tax. The government is having a hard time to tax bitcoin that’s why they are having a hard time justifying the use of bitcoin in their country.

I don't believe that taxation is the main obstacle to legalize Bitcoin in many countries because some countries have successfully set legislation to tax Bitcoin holdings and daily use with countries recognized bitcoin as a tender asset. In other words, any example can be followed and applied by the government willing to legalizing bitcoin use.
Governments always looking for new activities to apply taxation, but with bitcoin it can't apply taxation because they don't recognize it. Why they delay recognition despite it will generate more revenues from taxation? Simple because of decentralized nature of the blockchain which doesn't allow them to controle everything as they used with Fiat money.

When I last checked. Despite not accepting Bitcoin as legal tender, some governments taxed it.
 In my opinion, the main factor preventing many governments from legalizing Bitcoin as legal tender is the decentralized nature of Bitcoin, which bypasses the government model of governance because governments prefer to be in charge. Another reason is that they think BTC's seamless borderless transactions and pseudonymity make it a desirable choice for criminals to use as a payment method. We are both know that the majority of illicit transactions are carried out through fiat currency.
Some governments feel that Bitcoin lacks the potential and standing to be used for debts and other purposes like fiat currency. However, the nations that wish to legalize it face obstacles from the World Bank and as well as a lack of infrastructure to enable it. An example is the Central African Republic, despite their acknowledge toward BTC they lack the needed infrastructure to use it in the right way.

[DeeppRockk]

The taxation angle is interesting but I think its more about *how* governments tax rather than whether they do. Take Singapore-theyve had clear crypto tax rules since 2019, but they still dont recognize BTC as legal tender. The real friction isnt just collecting revenue; its that Bitcoins ledger doesnt fit neatly into their accounting systems. Whats often overlooked is how Bitcoin challenges the *mechanism* of monetary policy. Central banks dont just want control-they need it to manage inflation, liquidity, and economic shocks.

[serjent05]

When I last checked. Despite not accepting Bitcoin as legal tender, some governments taxed it.
 In my opinion, the main factor preventing many governments from legalizing Bitcoin as legal tender is the decentralized nature of Bitcoin, which bypasses the government model of governance because governments prefer to be in charge. Another reason is that they think BTC's seamless borderless transactions and pseudonymity make it a desirable choice for criminals to use as a payment method. We are both know that the majority of illicit transactions are carried out through fiat currency.
Some governments feel that Bitcoin lacks the potential and standing to be used for debts and other purposes like fiat currency. However, the nations that wish to legalize it face obstacles from the World Bank and as well as a lack of infrastructure to enable it. An example is the Central African Republic, despite their acknowledge toward BTC they lack the needed infrastructure to use it in the right way.

I agree.  The main reason why Bitcoin is yet to be acknowledged as legal tender by almost all nations is because of its feature.  Bitcoin is built on a decentralized which is a counter of the centralized system that the government implemented.  Another reason is that only a few individuals hold a huge percentage of Bitcoin; once it becomes a legal tender, it might disturb the ecosystem of the government finance.

We all know the government always wanted to be in control, the government will have a hard time acknowledging a decentralized currency as legal tender, because most of them think it will undermine their authority.

[Danica22]

When I last checked. Despite not accepting Bitcoin as legal tender, some governments taxed it.
 In my opinion, the main factor preventing many governments from legalizing Bitcoin as legal tender is the decentralized nature of Bitcoin, which bypasses the government model of governance because governments prefer to be in charge. Another reason is that they think BTC's seamless borderless transactions and pseudonymity make it a desirable choice for criminals to use as a payment method. We are both know that the majority of illicit transactions are carried out through fiat currency.
Some governments feel that Bitcoin lacks the potential and standing to be used for debts and other purposes like fiat currency. However, the nations that wish to legalize it face obstacles from the World Bank and as well as a lack of infrastructure to enable it. An example is the Central African Republic, despite their acknowledge toward BTC they lack the needed infrastructure to use it in the right way.

I agree.  The main reason why Bitcoin is yet to be acknowledged as legal tender by almost all nations is because of its feature.  Bitcoin is built on a decentralized which is a counter of the centralized system that the government implemented.  Another reason is that only a few individuals hold a huge percentage of Bitcoin; once it becomes a legal tender, it might disturb the ecosystem of the government finance.

We all know the government always wanted to be in control, the government will have a hard time acknowledging a decentralized currency as legal tender, because most of them think it will undermine their authority.

We should look at the bigger picture. The use of decentralized currencies will have serious consequences for our economy, not just weaken the power of government. Because our economy can function smoothly and stably thanks to the management and regulation of the central bank and the government through monetary policies.

In this scenario, if Bitcoin becomes currency, it would mean that central banks and governments would lose the ability to regulate the economy. And that would be a chaotic economy, and collapse would only be a matter of time.

Furthermore, if Bitcoin becomes the sole currency of the economy and with a limited supply, it would constrain economic growth. Our world will return to the gold standard, and I do not think many people will want that.

[Donk1]

Well it's said that money is a means of exchange, a store of value, and a unit of an account. Except from the fact that it has a high inflation and devaluation definitely that's how we have all seen it until the dawn of Bitcoin in the year 2009 Unfortunately Bitcoin being a digital asset that is decentralized has come to prove that it's a true store of value that has more to offer than that of fiat currency. And to the government anything they can't control will never be legal, and Bitcoin not being legal makes it not generally acceptable...

That being said the government are scared of losing power because if everyone turns to Bitcoin they wouldn't be able to control the economy. So right now it's easy to say the crypto space is rapidly developing and while bitcoin is not yet legal definitely to me I like to believe that the government cannot say no forever. Unfortunately, a time will come when they will need Bitcoin so for now they are just simply saying not yet that's just it......

[Swordsoffreedom]

...So right now it's easy to say the crypto space is rapidly developing and while bitcoin is not yet legal definitely to me I like to believe that the government cannot say no forever. Unfortunately, a time will come when they will need Bitcoin so for now they are just simply saying not yet that's just it......

I would be very happy if bitcoin became a currency someday. But honestly, the chance of that happening are very small or to put it bluntly, almost zero.

The government has never needed bitcoin, and I do not think that will change in the future. Why would a centralized entity like the government need a decentralized currency? The only thing they need from bitcoin is taxes, and that is why most of them legalize it as a commodity or asset, not a currency.

[TheUltraElite]

I would be very happy if bitcoin became a currency someday. But honestly, the chance of that happening are very small or to put it bluntly, almost zero.

But it is already a currency. Just that government over the world dont unanimously accept it as a currency. You can freely spend it as you wish without any taxation problems as of now.

However the governments want to keep the financial power in their hands so they will print more fiat and not give any attention to bitcoin. But I am sure in future they have to acknowledge its presence and by then mutiple big companies will  have already accumulated a lot of coins.

[macson]

I would be very happy if bitcoin became a currency someday. But honestly, the chance of that happening are very small or to put it bluntly, almost zero.

The government has never needed bitcoin, and I do not think that will change in the future. Why would a centralized entity like the government need a decentralized currency? The only thing they need from bitcoin is taxes, and that is why most of them legalize it as a commodity or asset, not a currency.

Most countries are now treating bitcoin as an asset and commodity because that way they can regulate and collect taxes on activities related to bitcoin without having to recognize it as an official currency. Governments don't need Bitcoin to be their national currency, because recognizing bitcoin as the country's official currency will strengthen bitcoin's position and allow more people to use it for their payments.

Governments prefer to launch CBDCs to maintain full control over their digital financial systems, whereas for bitcoin, they would consider it an investment asset or digital commodity subject to government supervision.

[Peanutswar]

.. why is it hard for most countries to fully accept it is or permit it's exchange?

People arent aware yet regarding with the bitcoin and not all country can now ride with the current trend of the bitcoin and of course if your country is not quite rich yet and have a poor governance for sure you will not take adapt the use of the bitcoin or crypto into your country. Also by that we can consider that the government does not a full control with the crypto space and its against with them no country would like let other people control how they manage their places so possible they didnt want to get involved here yet. But the other hand still there are some countries supported the use of the bitcoin imagine the ease and convenience gives with the crypto such as payment and less hassle transactions not only for investments.

[cxtreenal]

The taxation angle is interesting but I think its more about *how* governments tax rather than whether they do. Take Singapore-theyve had clear crypto tax rules since 2019, but they still dont recognize BTC as legal tender. The real friction isnt just collecting revenue; its that Bitcoins ledger doesnt fit neatly into their accounting systems. Whats often overlooked is how Bitcoin challenges the *mechanism* of monetary policy. Central banks dont just want control-they need it to manage inflation, liquidity, and economic shocks.

For governments, taxation is not a major barrier to Bitcoin adoption. Each country's government has the power to manage a centralized financial system through its central bank and to change and expand it. They use that power to reform the financial structure.
Since Bitcoin is a decentralized asset, governments cannot take responsibility for managing this asset. Another feature of Bitcoin is its price volatility, which is why governments consider this investment risky. Perhaps central banks consider the risky financial system to be a significant barrier to Bitcoin adoption.

[Faisal2202]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

My country did not accept crypto before but once, only for a short time and then they banned it again. According to my knowledge it is a state-based decision and not a single department from finance can take it just like any other thing; it has to be passed down from every authority, like it has been done now.

I know it should not be the way but I think state knows better as they have better resources, and information. They probably knows what is best.

Now army, and other authorities are jointly working on the adoption of crypto and they have set up mining stations (not working as of now, but soon) in short the ban has been lifted and new regulatory framework is on the way. Tax will be imposed too.

Every country has their own state level problems that they had to consider.

[Franctoshi]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

Many governments wouldn't want to legalize something that they can't control. Not your keys, not your crypto. Bitcoin has a private key or key phrase used to ascertain total ownership or control. Bitcoin has so many advantages over the fiat currency monetary system that if every country legalizes it, many banks will go out of business, except if they find a way of leveraging the system. Some countries may adopt Bitcoin in the future but would avoid making it a legal tender.

[coupable]

Major reason is tax. The government is having a hard time to tax bitcoin that’s why they are having a hard time justifying the use of bitcoin in their country.

I don't believe that taxation is the main obstacle to legalize Bitcoin in many countries because some countries have successfully set legislation to tax Bitcoin holdings and daily use with countries recognized bitcoin as a tender asset. In other words, any example can be followed and applied by the government willing to legalizing bitcoin use.
Governments always looking for new activities to apply taxation, but with bitcoin it can't apply taxation because they don't recognize it. Why they delay recognition despite it will generate more revenues from taxation? Simple because of decentralized nature of the blockchain which doesn't allow them to controle everything as they used with Fiat money.

When I last checked. Despite not accepting Bitcoin as legal tender, some governments taxed it.
 In my opinion, the main factor preventing many governments from legalizing Bitcoin as legal tender is the decentralized nature of Bitcoin, which bypasses the government model of governance because governments prefer to be in charge. Another reason is that they think BTC's seamless borderless transactions and pseudonymity make it a desirable choice for criminals to use as a payment method. We are both know that the majority of illicit transactions are carried out through fiat currency.

They are afraid from bitcoin that they will lose controle over their people who will be used to yse bitcoin for everything (daily small payments, investment, trading, moving funds outside the country...), because the real freedom of poor nations is financial freedom. Fiat money becaomes the new form of slavery in modern era.

For the next decades, I really doubt that governments will intend to recognize bitcoin as a legal tender despite its spreadness of use. At the same time they can't ignore it anymore so the best they can do is recognize it as a commodity and apply taxation for its use as investment asset.

[Mpamaegbu]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

You see the merit in Bitcoin as something good while governments of the world see it differently. Again, since Bitcoin seeks to cut off the middleman thing, how do you think government will be happy with that, seeing it disrupts tax system? It's not going to work. That's why most of them ignorantly assume Bitcoin confronts them.

I also think there is another self-serving reason behind this, some officials may keep part of their illegally earned money in cryptocurrency as well, and creating laws that regulate this sphere could end up affecting them too.

Government officials aren't the only ones corrupt or who cam pilfer funds kept in their care. Even those outside "government" (civil  service) do it. They're doing it with fiat. So, whether cryptos exit or not; thieves in government will continue to be there.

[Stablexcoin]

Many governments wouldn't want to legalize something that they can't control. Not your keys, not your crypto. Bitcoin has a private key or key phrase used to ascertain total ownership or control. Bitcoin has so many advantages over the fiat currency monetary system that if every country legalizes it, many banks will go out of business, except if they find a way of leveraging the system. Some countries may adopt Bitcoin in the future but would avoid making it a legal tender.

Some countries haven't called Bitcoin legal, neither do they restrict Bitcoin in the country. It is not a must for Bitcoin to be announced as legal, if the government isn't planning on totally restricting Bitcoin, they will set up regulations in a way it will profit government, which is a reason why we are taxed on cryptocurrencies.

If the government can have a neutral stance on cryptocurrency, that means progress, not legal, but everybody has the freedom to use it under regulations, no one is coming for you or your coins, it's not a must for Bitcoin to be pronounced legal.

[wozzek23]

Centralization hates decentralization, as simple as that. All the nations that did make it legal, did so after KYC laws and making sure they can follow every penny in and out of your bank accounts, nothing more. It's clear that we are not going to see this be an easy thing and because of that we shouldn't be considering this as easy, otherwise it is not going to be acceptable at all. We are seeing this as something that will take a while, but the ones who do not legalize it, did not do that because they feared they can't control it.

[Royal Cap]

I believe it’s not necessarily a bad thing that many countries have not yet legalized bitcoin, because so-called legalization is often just a loud label. In reality, it usually becomes another way to extract money from citizens. I also think there is another self-serving reason behind this, some officials may keep part of their illegally earned money in cryptocurrency as well, and creating laws that regulate this sphere could end up affecting them too. To avoid that, it may be more convenient to leave the issue untouched for now, especially since the majority of the population in such countries does not yet use bitcoin in everyday life.

For me Bitcoin not being legal is not just a tax issue but also a matter of uncertainty. When something is not clearly legal, ordinary people are more afraid. Big guys still find a way. If there is no law,small users are at risk, if there is a scam there is nowhere to go. As is the case in our country, since crypto is illegal, If someone is a victim of a scam through crypto they are afraid to go to the police. I agree that in many countries legality means additional control but if there are some minimum rules, the use is safe. I think the problem is not legality, the problem is how legality is being given. If done correctly, it can benefit not only the government but also the common people.

[Swordsoffreedom]

But it is already a currency. Just that government over the world dont unanimously accept it as a currency. You can freely spend it as you wish without any taxation problems as of now.

In theory, it was already a currency because Satoshi created it with the intention of being a currency, not a speculative asset. But it is not yet an official or legal tender that we can use every day like fiat. Therefore, I do not know how we would use it without converting it to fiat currency.

However the governments want to keep the financial power in their hands so they will print more fiat and not give any attention to bitcoin. But I am sure in future they have to acknowledge its presence and by then mutiple big companies will  have already accumulated a lot of coins.

Frankly, I do not believe the government will make Bitcoin legal tender in the future. Because that wouldn't really benefit them.

What reason would they have to acknowledge it, and what benefit would they gain from making Bitcoin legal tender?

[Webutxo]

I would be very happy if bitcoin became a currency someday. But honestly, the chance of that happening are very small or to put it bluntly, almost zero.

The government has never needed bitcoin, and I do not think that will change in the future. Why would a centralized entity like the government need a decentralized currency? The only thing they need from bitcoin is taxes, and that is why most of them legalize it as a commodity or asset, not a currency.

Most countries are now treating bitcoin as an asset and commodity because that way they can regulate and collect taxes on activities related to bitcoin without having to recognize it as an official currency. Governments don't need Bitcoin to be their national currency, because recognizing bitcoin as the country's official currency will strengthen bitcoin's position and allow more people to use it for their payments.

Governments prefer to launch CBDCs to maintain full control over their digital financial systems, whereas for bitcoin, they would consider it an investment asset or digital commodity subject to government supervision.

Tax comes before any plans any government has for their citizens. Regulations might actually be because they want to know who own Bitcoin and not because they want it. If they want Bitcoin like that, it wouldn't cost them much to buy and hold instead of waiting for people to tax. The government has the power to print money the way they like and people might not know, they know how to manipulate the numbers better without even the economists attention.

If the government are going to tax you of your Bitcoin, it's better it's kept in non custodial wallet, that way you don't have to worry the government will put eyes on your investment and be tracking your Bitcoin investment, you never can tell exactly what government can do next, they don't see money and let it go.