Countries Where Bitcoin Is Legal — and Not

The Finrazor team has prepared the list of countries and territories where Bitcoin is legal and illegal supported by special information on laws and restrictions applied, as well as detailed explanations

We have already provided our readers with basic information on Bitcoin and its benefits, so it's time to learn about the legal status of Bitcoin and how it varies from country to country. While some countries allow its use and trade, others impose ban or restrictions.

Today using Bitcoin is legal in most countries. Governments are closely looking at the cryptocurrency market as they are not entirely sure how to view and regulate them. It should be noted, however, that this year some countries (e.g. China) are making small steps towards adopting virtual currencies and establishing customer protections in the industry.

Here is the list of countries and territories where Bitcoin is legal and illegal:

Australia: legal (as of July 1, 2017). There is no regulation for cryptocurrencies as payment. Bitcoin is treated 'just like money', not subject to double taxation; debating a bill to apply AML to exchanges, will prosecute exchanges without a license.

Argentina: legal (as of June 2018). Bitcoin is not a legal currency; no special laws are applied. Central bank's official warnings of the risks are involved. Bangladesh: illegal (as of September, 2014). Bitcoin is prosecuted under AML laws. The Central bank states anyone found guilty of using Bitcoin can face up to 12 years in prison.

Bolivia: illegal (as of May 6, 2014). Central bank's resolution. Any currency or coins, not issued/regulated by the government, are officially banned.

Canada: legal (as of June 19, 2014). Cryptocurrencies must comply with AML and KYC requirements.

Catalonia: legal (as of May 2018). There are no special laws. Barcelona has its own cryptocurrency REC (Recurso Económico Ciudadano — Civic Economic Facility).

Colombia: legal (as of early 2018). There are no special laws.

Chile: legal (as of early 2015). There is no regulation for cryptocurrencies.

China: legal with limitations (as of June, 2018). Bitcoin is prohibited for banks to use. Major exchanges are instructed to shut down; taxes and electricity usage standards for mining to be implemented.

Cyprus: legal (as of early 2015). There is no regulation for cryptocurrencies.

Ecuador: illegal (as of 2014). Nation Assembly is ruling. Cryptocurrencies are banned as the government plans to develop own digital money system.

Egypt: legal technically (as of June 2018). No special laws are applied. While cryptocurrency trading is technically legal, Shawki Allam, Egypt's highest religious leader, says it violates Islamic Religious Law.

Europe: legal (as of June 2018). Supportive rules are underway. Calling for stricter AML policies; Parliament supported measures to prevent cryptocurrencies to be used for money laundering and terrorism.

Hong-Kong: legal (as of early 2018). No special laws are applied.

India: legal with limitations (as of early 2018). Not legal tender; trading is banned. Central bank banned the purchase and sale of crypto assets by financial institutions.

Iran: legal (as of June 2018). There is no legislation.

Israel: legal (as of early 2018). Supportive rules are underway. Resolve bitcoin transactions.

Japan: legal (as of early 2017). Legal tender, not legal currency. Mandatory AML and KYC for exchanges; an exchange study group is established.

Kazakhstan: legal (as of June 2018). There is no legislation. The Central bank plans to ban cryptocurrencies.

Kyrgyzstan: legal (as of June 2018). There is no legislation. Government is against usage of cryptocurrencies.

Lebanon: illegal (as of 2017). There is no legislation.

Malaysia: legal (as of June 2018). There is no legislation. Cryptocurrency regulation is under development.

Mexico: legal (as of June 2018). AML laws are applicable. The government banned banks from dealing in cryptocurrencies in 2014; passed a bill to bring local exchanges under the oversight of the Central bank in late 2017.

Morocco: legal with limitations (as of late 2017). Foreign exchange regulations. Regulators warn of penalties for cryptocurrency use.

Namibia: illegal (as of 2014). References to global AML policies, local legislation. Cryptocurrency cannot be accepted as payment for goods and services.

New Zealand: legal (as of early 2018). No special laws are applied.

Nigeria: legal with limitations (as of January 17, 2017). Central bank's circular. Central bank attempted to ban bank transactions in Bitcoin and other cryptocurrencies.

Norway: legal (as of early 2018). No special laws are applied.

Pakistan: legal with limitations (as of April 2018). The Central bank's statement. Financial companies are prohibited to work with cryptocurrencies.

Russia: legal (as of June 2018). Draft legislation was proposed in mid-2018. Focuses on preventing scams; to increase scrutiny for token sales and mining.

Singapore: legal (as of June 2018). Regulations are in development. Monetary Authority of Singapore warned of the risks associated with using Bitcoin in 2013.

South Africa: legal (as of June 2018). There is no legislation. Cryptocurrency regulations are implemented on a trial basis for a few selected businesses.

South Korea: legal (as of June 2018). Anonymous virtual currency accounts are banned. To increase oversight over exchanges; planning joint oversight with Japan and China over cryptocurrency investment.

Thailand: legal technically (as of March 2018). Two draft royal decrees. Established KYC requirements for investors and a capital gains tax.

Turkey: legal (as of 2018). No special laws are applied.

Vietnam: illegal (as of March 2018). References to global AML policies, local legislation. Cryptocurrency can't be accepted as payment for goods and services.

Ukraine: legal (as of July 2018). The Financial Stability Council of Ukraine supported a regulatory concept of crypto regulation that involves recognizing cryptocurrencies as a financial instrument.

The United Kingdom: legal (as of June 2018). Plans to regulate Bitcoin as a 'commodity'. Financial Conduct Authority warns on the risks due to the of lack of consumer protection.

The United States: legal (as of June 2018). Draft Uniform Regulation of Virtual Currency Act. Treasury classified Bitcoin as a convertible decentralized virtual currency in 2013; a federal judge ruled that 'Bitcoins are funds' in 2016.

Zimbabwe: legal (as of late 2017). No special laws are applied. The Central bank stated Bitcoin is not 'actually legal'.


3,995 USD -0.63%
Volume, 24h
1,255,476,740 USD
70,481,615,984 USD

Related news

Bitcoin [BTC] Futures in good stead against its Spot equivalent: Bitwise Report

Bitcoin [BTC] Futures were thought to be a snippet of the overarching cryptocurrency market, though meager in comparison to the larger spot market. A recent report from Bitwise Asset Management, the crypto-centric investment firm has stated otherwise. In a March 20 report presented to the United States’ Securities and Exchange Commission [SEC], Bitwise analyzed the Chicago Mercantile Exchange [CME], and the Chicago Board Options Exchange, with ten prominent cryptocurrency exchanges’ in terms of their trade volume. Prior to shedding light on their Futures versus Spot findings, it must be noted that the report revealed that 95 percent of the trading volume of unregulated exchanges were seemingly “fake and/or non-economic wash trading”. Taking into account this disparity, the percentage of futures volume to their spot equivalent increases from 1.51 percent to 33.33 percent. Reported Spot volume totaled $6 billion, but after removing the “suspicious exchanges”, the actual volume recorded dropped to $273 million, in comparison to the futures market volume of $91 million. Furthermore, the increase in futures’ volume as a percentage of the spot market has been steadily increasing. From November 2018 to January 2019, the futures market was just over 15 percent, and almost doubled in February 2019 to 33 percent. Since the Futures contracts were approved in December 2017, only on two occasions did the Futures volume, in comparison to the Spot market, shoot above 20 percent; this was in May and August 2018. Futures Volume expressed as a percentage of their Spot Equivalent In terms of their stand-alone trade volume, the CME and the CBOE are in good stead against the world’s top cryptocurrency exchanges. The daily volume the CME, which brings in $84.82 million, ranks second behind Binance’s $110.5 million and ahead of Bitfinex, which records $38.06 million in daily trade volume. The CBOE also fairs well, taking the ninth spot on the ladder, ringing in $6.12 million in daily trade volume. Gemini takes the eight spot with $8.11 million and itBit caps off the top-10 with $5.58 million in daily volume. Notable, among the top-12, eight exchanges are registered within the United States. Despite the CBOE’s comparative success against the spot exchanges’, it has not been performing well against its cross-town rival, the CME. This slump forced the CBOE to delist their Bitcoin Futures [XBT] for March 2019. However, the XBT futures that are yet to expire later in the year will not be off-loaded prematurely. Bitwise also points out that the CME Futures Price tracks the Global Spot Price based on an arbitrage model. Given below is a chart attesting the same: Arbitrage between the CME Futures price and the global Spot price The post Bitcoin [BTC] Futures in good stead against its Spot equivalent: Bitwise Report appeared first on AMBCrypto.

How Cryptocurrency Trading Volume Fiasco Can Lead to Bitcoin ETF Approval

The SEC has held the ETF approval for Bitcoin and Cryptocurrency for a couple of reasons. The most significant reason for the same has been the unregulated marketplace. While decentralization in Bitcoin is an attribute that makes it an ideal asset class, the market places or Exchanges that provide for conversion of FIAT to Cryptocurrency is still controlled by independent entities. A recent report by Bitwise Asset Management published by the SEC inferred that more than 95% of the cryptocurrency volume is being faked. Hence, according to that, the ‘actual spot volume’ on cryptocurrency exchanges is a little above $270 million. Moreover, the reported volume of CME and Cboe Bitcoin Futures is more than one-third of the ‘actual spot volume’ estimated by Bitwise. According to Bitwise Asset Management, This is good news because it means CME— a regulated, surveilled market— is of material size, which important for an ETF. The case of a Bitcoin ETF Approval Now CME Bitcoin Futures reported a spot trading volume of $85 million. Moreover, according to Bitwise Asset Management, the actual trading volume of the Crypto-to-FIAT Exchanges is around $273 million. Hence, according to this statistic the Futures Trading Volume of CME alone accounted for 31.1% of the ‘Actual Exchange Volume.’ Moreover, there are other Bitcoin Futures market active in Europe and Japan as well. Hence, going by the above statistic, it can be said that the institutional investment might be in parity with the unregulated investment in Bitcoin. However, the Exchanges have reported total spot volumes total to the tune of $6 billion. This can necessarily raise doubts on its demand being higher than $100 billion. However, it does not directly affect the total market capitalization of a cryptocurrency.   Parity Between Spot Trading of Bitcoin and Gold The spot trading volume of Gold is 0.55% of its total market capitalization, while according to Bitwise statistics spot ‘actual spot trading on Bitcoin is 0.39%. If the CME Futures volume is included in this data, the percentage will increase to 0.51%. The OTC trading volume on most exchanges is also not added in the Exchange Data. All this suggest that the institutional investment in Bitcoin is considerably more significant than one expects. It is not only healthy in volume but also agrees statistically with the closest relatable asset class, i.e., Gold. Hence, a new form of informational mechanics for the trading of Bitcoin and Cryptocurrency in regulated Exchanges could alleviate the doubts around the Bitcoin ETF approval.   The post How Cryptocurrency Trading Volume Fiasco Can Lead to Bitcoin ETF Approval appeared first on Coingape.

The Debate Over Bitcoin’s Dominance Re-Ignites As Markets Begin Recovery

Signs continue to emerge that the bear market may finally be at an end, as values across the crypto space are inching upwards and a number of platforms are well on their way to real-world adoption. One positive sign is that Bitcoin has moved past USD $4,000 several times over the past few days. This positive movement is reigniting the debate over the flagship cryptocurrency’s long-term role among blockchain assets. Although Bitcoin’s value is clearly on the upswing, there is reason to believe that it may finally be losing its status as the dominant crypto platform. There is no doubt that Bitcoin is having a good month. Although prices remain volatile, it continues to inch upward. Additionally, continued interest from regulators and institutional investors all but guarantees that it will benefit moving forward. There is also a historic reason for Bitcoin advocates to be optimistic, as the coin has increased in value each of the last three Aprils. The Lightning Network is also showing signs of success. After a slow start, use of the off-chain scaling platform is growing. The number of channels is increasing, having now surpassed twenty-five thousand. Also, the value of the network capacity, which is critical to its function, has surpassed USD $4 million. Overshadowing these optimistic developments is evidence that Bitcoin’s hegemony among blockchain assets is slipping. Most notably, Bitcoin’s percentage of the total crypto market cap has been slowly decreasing since September, and now sits at 52 percent. Two years ago it was eighty-five percent. There is also no shortage of positive news around many altcoins. For example, IBM’s adoption of Stellar for its financial payment service, Blockchain World Wire, has grabbed headlines as has Dash’s continuing growth in Latin America. In fact, most of the major moves toward mass adoption of blockchain assets presently involve a Bitcoin competitor. Despite recent successes, there is no question that name recognition and first-mover advantage remains key to Bitcoin’s continued status as top crypto, as even with the Lightning Network it is technically inferior to most top alts. Thus, should a competing platform move significantly ahead in market cap, Bitcoin’s place in the crypto space would likely erode very quickly. Right now, however, no altcoin is even close to breaking out, yet it is worth noting that during the run up of 2017 Ethereum came very close to becoming the top coin. There is, of course, no shortage of debate surrounding Bitcoin’s potential future. Some analysts have come to use the term “altcoin season” to describe the current phase of blockchain adoption, as they assert that the era of Bitcoin hegemony will soon come to an end. Bitcoin supporters, on the other hand, claim, perhaps correctly, that interest in Bitcoin is as strong as ever. One report, for example, puts Bitcoin’s dominance in the market at well over eighty percent when taking into account factors beyond mere market cap. In truth, it is far too early to determine whether or not Bitcoin will remain king among cryptos. One need only look to the evolution of the digital era to find many examples of early players being replaced by more advanced, or more popular, competitors. Nevertheless, the blockchain revolution is a truly unique phenomenon which does not fit any established pattern. Moreover, Bitcoin has demonstrated a remarkable resilience against many attempts to diminish it, and its popularity is growing. Nevertheless, this crucial question will almost certainly be answered over the next several months, as blockchain takes greater steps into the mainstream. Featured Image via BigStock.

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.