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

[Abiky]

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.

Using a non-custodial wallet does not guarantee you'll be safe from paying taxes. Especially if you're careless. By sending your coins from the non-custodial wallet to a centralized exchange, the government will have a trail (or track record) they can follow to collect taxes from you. It's all due to the enforcement of KYC/AML laws. That's why everything needs to be done in a decentralized and off-chain manner (in-person/Face-to-Face trades). Even better when you use a privacy coin.

Many countries in the past used to reject Bitcoin out of skepticism. It was the wild west in the early days. Now almost everyone is on-board as Bitcoin has taken the path towards "institutionalization". Of course, there are a few countries that are still against Bitcoin. But I believe that's bound to change in the future. At the pace we're going, it seems to me that we'll be living in a "hyperbitcoinized" world. This means the widespread use of Bitcoin as a currency on top of Fiat. As long as decentralization is preserved, there should be nothing to worry about.

[Rubuchi]

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.

but if I May want to ask how easily possible is it for government to tax the bitcoin and other digital crypto currencies like the altcoins among others. Is it just going to be applicable to those who are on centralized platforms or even the decentralized platforms too can be taxed? How can they deal with your anonymity ?

[endut15]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

[john_egbert]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

Govs don't do steps they are not 100% sure of.

Or if they do think they would be 100% right, while in reality, they won't.

It was always like that and it will stay that way

[Agbamoni]

You should understand that these countries have their own reasons.
Not every sector is acceptable because the government wants to have full control of it. If they can't control the system, they wont accept the technology.
Bitcoin is banned in many countries because it is a decentralized network. The users have full control of their money, they can't be taxed thorugohly unlike regular money and the traditional system of finance.

[Achalugo BTC]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

Yeah, the government are so much in concern about being in control of Bitcoin, which is why they are finding difficult to accept or adopt the idea of Bitcoin.
Which is why some countries are accepting it while others are taking it with a more cautious approach. But even as that, everyone will not be a part of Bitcoin despite its value because most of them will see Bitcoin as a way of scamming them, even though you show them the proof.

[MainIbem]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

Govs don't do steps they are not 100% sure of.

Or if they do think they would be 100% right, while in reality, they won't.

It was always like that and it will stay that way

It's not like they're not 100% sure, the growth of Bitcoin and what it offers enough prove that it's a good alternative for fiat but then the government wants control while Bitcoin gives them less control and offers more privacy to users, which is something most governments can't tolerate, which is why some governments come up with policies that would discourage their citizens from using it but then there's still hope for a change. For instance, take a look at Iran, their currency dropped so bad and it would force their government to turn to crypto and change those policies hindering more citizens from embracing it.

[henry_of_skalitz]

It's not like they're not 100% sure, the growth of Bitcoin and what it offers enough prove that it's a good alternative for fiat but then the government wants control while Bitcoin gives them less control and offers more privacy to users, which is something most governments can't tolerate, which is why some governments come up with policies that would discourage their citizens from using it but then there's still hope for a change. For instance, take a look at Iran, their currency dropped so bad and it would force their government to turn to crypto and change those policies hindering more citizens from embracing it.

i think he meant that the govs want to be sure in what they are doing will bring them profit or control either way.. if it won't, they won't budge their fingers in any kind of activity.

[purple_sparkles]

I don’t see anything wrong with the fact that not all governments have started legalizing the use of bitcoin yet. In most cases, legalization = simply means taxation, so while governments are busy with other issues, bitcoin remains a kind of haven where they cannot easily reach with their long hands. I also assume that one of the reasons they are not rushing to do this is that some of them may hold savings obtained through corruption schemes or fraud in bitcoin or other cryptocurrencies, and developing laws and legalizing crypto could directly affect them as well. Therefore, until another solution is found, it is safer for them not to touch this topic.

[Livingleged]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

Yeah, the government are so much in concern about being in control of Bitcoin, which is why they are finding difficult to accept or adopt the idea of Bitcoin.
Which is why some countries are accepting it while others are taking it with a more cautious approach. But even as that, everyone will not be a part of Bitcoin despite its value because most of them will see Bitcoin as a way of scamming them, even though you show them the proof.

Yea with out any doubt that is the reason most government are not really interested in adoption of bitcoin due to is complexity in term of tractability of transactions  unlike the traditional banking system.

The decentralized nature of of bitcoin is the only reason why they all don’t want to adopt it now they are enforcing all the exchanges to adopt a mandatory KYC for their users just to trace all transactions down to their owner of the those wallet.
The senses of being in charge is just.it and bitcoin wasn’t designed for anyone to be in charge you own you coin  and you can do what ever you want  to do with it at anytime you want no weekends nor holidays.

[Kelward]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

I fully agree with you that the reason some countries are not Bitcoin friendly and others still ban it despite it's accomplishments are not because they are intimidated by the technology, it's all about not being in total control. Governments don't like what they cannot control in their countries and this is what Bitcoin originally stands for which is privacy and freedom for it's holders. Bitcoin transactions that only goes through none custodial wallets and peer 2 peer transactions cannot be monitored by them. Aside from the control I believe that every country will be cool with Bitcoin but Bitcoin is not entirely invincible to them they can regulate and tax the ones that are going through exchanges.

[melinoe]

I don’t see anything wrong with the fact that not all governments have started legalizing the use of bitcoin yet. In most cases, legalization = simply means taxation, so while governments are busy with other issues, bitcoin remains a kind of haven where they cannot easily reach with their long hands. I also assume that one of the reasons they are not rushing to do this is that some of them may hold savings obtained through corruption schemes or fraud in bitcoin or other cryptocurrencies, and developing laws and legalizing crypto could directly affect them as well. Therefore, until another solution is found, it is safer for them not to touch this topic.

They will regulate everything besides themselves

They are the government, quite literally, and they will do everything in their power to stay where they are in terms of data flowing back to them, as well as the people staying by their side tied up by the services / etc.

[Man of peace]

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?

Because those countries who have not accepted Bitcoin or have not legalized Bitcoin in their countries want to have authority over the operations of Bitcoin in their country which is not possible according to the structure in which Bitcoin was built that no one can be able to have control over the operations of Bitcoin and that has been the reasons why some many countries have not accepted Bitcoin or legalize it in their various countries,if there's any other reason best known to them. but the issue of having control over the operations of Bitcoin by the government has been the center of everything..

[cxtreenal]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

The policy aspects of not being able to control it have left most governments indecisive about adopting Bitcoin. Their lack of proper knowledge about Bitcoin has hindered them from creating a potential financial hedge. The smart investors in the world who have learned about the intrinsic value of Bitcoin have adopted it themselves and are taking the bold step of spreading this digital asset among their communities by coming to power.

El Salvador President Nayib Bukele is a prime example. It is certain that more countries will adopt Bitcoin in the future by following his policies. Donald Trump's promise will make America the capital of Bitcoin in the future. The most positive thing is that Bitcoin is not limited to any specific person, institution or country. Bitcoin investors from different countries together form a community and this number will gradually increase.

[SOKO-DEKE]

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 fact is, not everyone has to like Bitcoin and they may have their own reasons for that. In countries that have yet to accept Bitcoin or make it legal tender, it may be because those in power do not like Bitcoin. With that in mind, it is very possible that no matter how much Bitcoin contributes to the development of the country, they will never accept it simply because they don't like it.

So, for countries that do not accept Bitcoin currently, they may accept it in the future if there is a change in power, and the new leader is a Bitcoin supporter. Even in countries that currently accept Bitcoin, it’s possible they may stop accepting it if there is a change in power, and the new leadership does not support Bitcoin.I just want you to understand that not everyone will like Bitcoin, and in many cases, it's because of their own selfish interests.

[Muba20]

One of the reasons why governments are not accepting Bitcoin is that governments cannot control Bitcoin. The way governments usually control everything related to the country's finances through their central banks will never be possible with Bitcoin. Moreover, due to Bitcoin being extremely volatile, governments have not been able to gain full confidence in investing in it. Lack of education about Bitcoin is another reason why governments are not yet interested in Bitcoin adoption, but those who are gaining knowledge about Bitcoin are researching how to make Bitcoin usable in all area. The governments of many countries have started investing in Bitcoin. They have launched educational programs about Bitcoin in their countries so that they can quickly gain good knowledge about Bitcoin and develop further in the world economically.

[melinoe]

One of the reasons why governments are not accepting Bitcoin is that governments cannot control Bitcoin. The way governments usually control everything related to the country's finances through their central banks will never be possible with Bitcoin. Moreover, due to Bitcoin being extremely volatile, governments have not been able to gain full confidence in investing in it. Lack of education about Bitcoin is another reason why governments are not yet interested in Bitcoin adoption, but those who are gaining knowledge about Bitcoin are researching how to make Bitcoin usable in all area. The governments of many countries have started investing in Bitcoin. They have launched educational programs about Bitcoin in their countries so that they can quickly gain good knowledge about Bitcoin and develop further in the world economically.

What would stop them from providing services with BTC through centralized entities like banks?

They do it already. They won't stop anytime soon.

[Nwada001]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

They consider Bitcoin to be a treat, which shouldn't really be that way, and at the same time they can't take their eyes completely from it because they also want to benefit, if not from Bitcoin itself, then from those who are using it. That's why many of them are changing from their initial idea of how they viewed Bitcoin before into something they need to give a legal framework so as to enable them to tax those who use it and the institutions that provide service related to it.

[Abiky]

You should understand that these countries have their own reasons.
Not every sector is acceptable because the government wants to have full control of it. If they can't control the system, they wont accept the technology.
Bitcoin is banned in many countries because it is a decentralized network. The users have full control of their money, they can't be taxed thorugohly unlike regular money and the traditional system of finance.

Of course. But with centralized exchanges dominating the market, "controlling" Bitcoin shouldn't be a problem. Most (if not all) CEXs enforce KYC/AML laws, making tax evasion impossible. Not to mention, the core Bitcoin blockchain ledger is transparent. Authorities can easily track and trace transactions to detect tax evaders. Based on this, I believe countries that were against Bitcoin will change their mind in the long run. Even Russia is exploring legalizing Bitcoin for mainstream use. And China is not behind.

In a "hyperbitcoinized" world, most of the world's countries will embrace Bitcoin as an alternative currency for payments. Adoption is rising at a very fast pace, especially with "Wall Street" on-board. You think opposing countries are going to miss the huge opportunity of taxing BTC? They will want a "piece of the pie", even if the core Blockchain network is decentralized. Governments will end up regulating Bitcoin heavily to keep it under their grasp. We'll see what happens in the future.

[GeorgeJohn]

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?

From the beginning bitcoin were introduced, many countries has not welcomed the idea of decentralized currency,  And they were kicking against the development of bitcoin

Some countries government feels that the reason why bitcoin were created is for money laundering, and that speculation then as bitcoin were introduced, has been the mindset of so many nations

And this are one of the facts why bitcoin is yet to be legalise as a legal tender, So countries doesn't wants to embrace bitcoin due to, they thought bitcoin will devalue their nation fiat currency, so different have different perception and assumptions depends their president understanding of digital decentralized currency.