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

[EstherBtc]

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?

[Plaguedeath]

Because they have their own reason:

1. It's harder for them to tax the money, people have a way to cash out privately which make them can't maximize the tax, unlike stock, ETFs where everything recorded in centralized sites.
2. They're a country where most of the citizen are Muslims, Bitcoin is haram in Islam, hence they ban it.
3. They hate Bitcoin.

[HustleZ]

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

There are a few reasons but i think it hasnt been legalized because it is a rather new Asset according to the standard of Worldwide adoption. It has been around for 16 years, A long time but it hasnt proved its stability yet as it had many ups and downs in these years.
 another reason might be POWER, Governments Dont like losing Power and with Bitcoin's Decentralisation they are very likely to lose it as it gives people power in their own hands unlike Fiat Currency.

Because they have their own reason:

1. It's harder for them to tax the money, people have a way to cash out privately which make them can't maximize the tax, unlike stock, ETFs where everything recorded in centralized sites.
2. They're a country where most of the citizen are Muslims, Bitcoin is haram in Islam, hence they ban it.
3. They hate Bitcoin.

Your first point is right but i might have to disagree with point 2, and 3. Point.2 I am a muslim and can assure you that it is not haram in islam if you use it for preserving wealth or as an investment but it is when you use it For Gambling or other haram stuff. Point.3 i dont think thats true because no one hates anything that gives them profit or something valuable in return which bitcoin does so hating it is not a reason to not legalize it. It is not the Main reason for not legalizing but they can not like it because it gives them a loss. which discussed in your point 1

[hd49728]

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

Bitcoin is not owned and controlled by governments and central banks and Bitcoin is like a threat in view of governments and central banks. With conflict of interest, it is explainable why they don't like Bitcoin and in many years want to do many attacks in order to kill Bitcoin adoption.

They can not kill Bitcoin and its adoption in 2025 and in the future so they changed from restrictions, bans to accept Bitcoin but enforce more laws, regulations for getting more money from citizens through tax. Taxing on Bitcoin investors, traders is like a most important concern of governments globally nowadays when they know that their governments will be challenged, even collapsed if they ban Bitcoin.

[Ambatman]

Most countries consider Bitcoin legal or regulated only few have outrightly banned it
The ones that banned it have their reasons like not wanting financial autonomy for their citizens
Terrorism even if Fiat has being funding such before Bitcoin was birthed
Among others.

Like I said before Majority of the world government consider Bitcoin legal and/or well regulated

Except you talking about making a legal tender
Which I believe is too much of a stretch to expect the government to give away their control (Fiat)

[Hatchy]

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

It's a very simple answer mate, the government wants to control everything that's within their border, and bitcoin is that one thing they can never control but still to exist till date..

The decentralised nature of bitcoin prevents it from being controlled by the government like they do with fiat and gold. The government literally has been against the whole idea about the new money system since it cannot be duplicated or manipulated.. just few countries have managed to adopt the new system but not completely..

[Plaguedeath]

Point.2 I am a muslim and can assure you that it is not haram in islam if you use it for preserving wealth or as an investment but it is when you use it For Gambling or other haram stuff.

I still disagree, the reason why Bitcoin is haram because people think that as high risk investment, not about the usage. It's also not backed by gold or fiat, which is another reason.

I know there are some people who said Bitcoin is halal and haram, but from what I know, if it's debatable between halal or haram, better to count it as haram instead.

There are 3 main reasons why cryptocurrency like Bitcoin may be considered haram:

It’s a high-risk investment similar to gambling
It’s used differently to money
It’s not regulated by governments or financial bodies.

For example, a 2019 fatwa by the Syrian Islamic Council explicitly declared cryptocurrencies “like bitcoin” to be ḥarām. They listed many concerns: crypto exists only digitally and isn’t backed by gold or fiat, it’s not regulated by any bank or state, and its prices jump wildly, raising questions about whether cryptocurrency is haram. This makes crypto “inherently high-risk,” they said, which is a concern for those evaluating if crypto investment could be halal.

[EstherBtc]

Because they have their own reason:

1. It's harder for them to tax the money, people have a way to cash out privately which make them can't maximize the tax, unlike stock, ETFs where everything recorded in centralized sites.
2. They're a country where most of the citizen are Muslims, Bitcoin is haram in Islam, hence they ban it.
3. They hate Bitcoin.

Thanks for this response, i had no idea

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

Bitcoin is not owned and controlled by governments and central banks and Bitcoin is like a threat in view of governments and central banks. With conflict of interest, it is explainable why they don't like Bitcoin and in many years want to do many attacks in order to kill Bitcoin adoption.

They can not kill Bitcoin and its adoption in 2025 and in the future so they changed from restrictions, bans to accept Bitcoin but enforce more laws, regulations for getting more money from citizens through tax. Taxing on Bitcoin investors, traders is like a most important concern of governments globally nowadays when they know that their governments will be challenged, even collapsed if they ban Bitcoin.

2020/2021 i remembered the ban and restrictions most asian and West African countries placed on Big Crypto Currency exchange company the Likes of Binance and the rest, as a result of that ban BTC reached it major ALH (all time high) which rubbed off on other coins like ethereum and Binance coin. That lead to P2P means of buying coins. This goes to show that Crypto Currency has come to stay

[moderator's note: consecutive posts merged]

[Z_MBFM]

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?

Not all countries are yet ready to monitor crypto transactions properly and collect taxes properly, and many are very far-sighted about Bitcoin management due to the weak economy of their country, due to which they do not have the ability to legalize Bitcoin and manage it properly. Bitcoin cannot be bought directly in countries where Bitcoin has not been legalized. When Bitcoin is legalized there, Bitcoin can be bought directly through banks. And at that time, if that country cannot bring Bitcoin transactions under tracking, then a large amount of money can be laundered from that country through Bitcoin. And then that country will collapse economically. Considering these aspects, many countries still do not consider themselves ready to legalize Bitcoin.

[Felicity_Tide]

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

I think I will agree with those that suggested that the government are literally the main factor that hinders Bitcoin acceptance in a country. Just like every country, the government are totally in charge. Of course, we hear democracy, or freedom, or whatsoever, but the government always wants to be the boss. Bitcoin is difficult for them to have control over because it literally exceeds a country. It is clearly different from a fiat system where the government can either trigger excess of it, or limit it like what I witnessed in my country in two different occasions.

Having a technology that they can not shut down, can not replicate its monetary form like the excessive printing of fiat, can not be seized without the owner's permission if the person practices self custody, clearly looks like a threat to them. The thing is, some government has learnt to live with it, knowing fully well that nothing can be done, but guess what, they still impose KYC/AML policies, so as to put their citizens in check.

[pawanjain]

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?

It's not that easy to run a nation and and it's not that easy to legalize a currency.
Bitcoin is a decentralized cryptocurrency which makes it hard for governments to control it.
This is why they introduce regulations and policies so that they can control the entities which use bitcoin.
While some have already achieved the regulation many are still hesitant and reluctant to pass those regulations and hence why many counties have not yet legalized bitcoin.

[Shadiq]

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?

Various governments are still reluctant to recognize Bitcoin, mainly because of tax evasion and being outside the control of the government. When a country legalizes Bitcoin, they must have some plans for it and they must also take steps to ensure that the people of the country do not misuse this opportunity.
Not all countries can afford to take this step and do not know Bitcoin well.

The reasons for not giving legality are -
. Lack of government control.
. Possibility of tax evasion.
. Increased amount of hidden wealth.

[cryptotact11]

Point.2 I am a muslim and can assure you that it is not haram in islam if you use it for preserving wealth or as an investment but it is when you use it For Gambling or other haram stuff.

I still disagree, the reason why Bitcoin is haram because people think that as high risk investment, not about the usage. It's also not backed by gold or fiat, which is another reason.

What people think does not matter, only the objective truth matters. Bitcoin is a low risk investment. How many decades do need to pass before this nonsense about high risk investment stops?

It's not that easy to run a nation and and it's not that easy to legalize a currency.

Easy if you are not corrupt, the more corrupt you are the harder it is to run the nation.

[Rikafip]

The main reason why many countries are still hesitant is because countries want to be in the full control of the money used in their country, and something like that is not possible with bitcoin. There is also fear of bitcoin being used for illegal activities but that's just a bullshit excuse as some can be said about fiat money.

Despite that, situation is not as grim as your question suggests as here in Europe we are free to buy/sell crypto freely, as long as you pay the taxes (that can be avoided too for now, but not for too long).

[avikz]

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?

There's a very simple reason -

Bitcoin is neither created nor controlled by any specific nation!

A lot of countries do not want to legalize something that is not created by them, especially when it is related to money matter directly. Probably that's one of the reasons these countries are still developing.

If I take an example of my country, Bitcoin is neither banned nor legalized. We are allowed to trade or invest in crypto. But we need to pay 30% tax for every profit we make. That's a kind of a daylight robbery.

It all depends on the mindset of the government.

[WhoYouCantKill]

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?

The reason for not fully accepting or permitting Bitcoin and cryptocurrencies by many countries can be because they challenge control of the government over money, pose risks for money laundering or tax evasion, it is very volatile, and has a tendency of undermining traditional banking systems. Protecting consumers from scams and market crashing, fear of losing monetary policy control when digital currencies take over national currencies, these seem to be the worry of regulators.

[Stalker22]

According to this map from Wikipedia, Bitcoin is legal in most countries in the world.


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

I havent actually counted, but as far as I can tell there are only a handful of countries where Bitcoin is prohibited (either completely or only partially).

[yhiaali3]

The reason is very simple and clear: Bitcoin is decentralized and maintains privacy, something governments reject. It gives you real control over your assets, while governments want your assets to be under their control.

Governments want to control everything and monitor all their citizens' accounts and financial transactions. Therefore, they reject Bitcoin in its decentralized form, accepting it only if it is implemented through centralized platforms that impose KYC and AML restrictions.

[lionheart78]

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?

What do you mean when you say fully accept Bitcoin?  As far as I look at the data, it contradicts your statement when you say most countries are having a hard time permitting the Bitcoin exchange.  If we look at the article https://blog.sagipl.com/legality-of-cryptocurrency-by-country/, it looks like there is more countries that accept Bitcoin than ban it.  These country as far as I know, accept Bitcoin as a mode of payment, thus the country permits the Bitcoin exchange.

So this is the reason why I asked what you mean by "fully accepting Bitcoin".  If we look at it as being recognized by the government to be used to pay for goods, exchange by people through trading then we can say that most country has it accepted thus contradicting your statement. But if you say it as legal tender, then it is because of the restriction of the country's financial regulations.

[kotajikikox]

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?

They just don't want to. A lot of people still think that cryptocurrency is good for nothing scams due to their volatility and them being issued by non government. Obviously the government would not want to be overshadowed and have other kind of currency, one to be used in transactions and investment purposes, ruling their country.