What does “legal” even mean in a decentralized world?

[Veloxcrypt]

After reading the responses on my previous post about Bitcoin’s legality, I realized something interesting.
Maybe the real question isn’t whether Bitcoin is legal because governments can’t control it. Maybe the real question is:
What does “legal” even mean in a decentralized world?
Governments don’t control Bitcoin’s network.
They can’t shut it down, they can’t change its supply.
But they can regulate:
Exchanges, On/off ramps, Businesses, Tax reporting, Banks interacting with crypto
So technically, they don’t control Bitcoin itself, they control the points where Bitcoin touches the traditional system that creates a strange dynamic:
Bitcoin is decentralized by design, but its users still live inside nation-states.
So here’s where it gets deeper:
If a government bans Bitcoin, does that make Bitcoin illegal or does it only make participation risky within that jurisdiction?
Because the network doesn’t recognize borders.
This makes Bitcoin different from any asset in history. Gold can be confiscated. Bank accounts can be frozen. Companies can be shut down.
But Bitcoin keeps producing blocks every 10 minutes, regardless of policy decisions.
So maybe Bitcoin’s “legality” is not about permission  but about how much friction governments are willing to create around it.
Just my own opinion and view point...

[zasad@]

If your government bans Bitcoin and the police find Bitcoin in a citizen's possession, the following mechanisms are available. It's virtually impossible to confiscate Bitcoin unless the citizen hands over the private key. Therefore, the court can seize or confiscate the citizen's property worth that amount. If the citizen has no property, the government can ban them from leaving the country until they pay the debt, as well as other adverse legal consequences.

[MusaMohamed]

If your government bans Bitcoin and the police find Bitcoin in a citizen's possession, the following mechanisms are available. It's virtually impossible to confiscate Bitcoin unless the citizen hands over the private key. Therefore, the court can seize or confiscate the citizen's property worth that amount. If the citizen has no property, the government can ban them from leaving the country until they pay the debt, as well as other adverse legal consequences.

In some nations, governments through police can enter citizen houses and do their 'dirty jobs' for finding things they need. Like if they know you have bitcoins, and you broke some kinds of laws, they will enter your house and find 'evidence' while who knows what will they do if they find your bitcoin private keys, wallets and so on. In such nations, the best practice is don't let governments knowing about your Bitcoin and cryptocurrency related activities. Don't do anything stupid that can bring them to your home, as if it happens, you will lose your bitcoins.

People who are living in nations with Illegal, Allegal or Unknow legality of Bitcoin and cryptocurrency have to practice more carefully than people who are living in nations where the legality of Bitcoin & cryptocurrency is legal.

https://newhedge.io/terminal/bitcoin/legality-map