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'.


3,669 USD -0.00%
Volume, 24h
993,075,360 USD
63,913,570,845 USD

Related news

Bitcoin (BTC) Darknet Transactions Doubled In 2018: Why This Is Bullish

Crypto Darknet Transactions Boomed In 2018 Since Bitcoin (BTC) burst onto the global stage in 2009, the cryptocurrency, known for its decentralized, immutable, censorship-resistant, pseudonymous, and borderless nature, has become a medium for transactions of all shapes and size. And just like U.S. dollars and other government-issued currencies, BTC has found use cases in illicit transactions. Whether it be purchasing questionable goods or otherwise, the flagship cryptocurrency has found a place. Per a recent report by the way of Reuters, which cited data gathered by Chainalysis, a leading blockchain data analytics consortium, Bitcoin-related transactions on darknet markets, which offer fake IDs, over-the-counter drugs (recreational), among other articles of contraband, have risen dramatically since January 2018. This rally in darknet-related transactions comes as BTC fell from an all-time high of $20,000 to a yearly low of $3,150 in late-December. It isn’t clear how the analytics group, which is often employed by governmental agencies to weed out bad actors, discerned ‘normal’ transactions from those questionable, but Chainalysis revealed that $2 million per day worth of BTC were routed through the darknet’s peer-to-peer marketplaces. Overall, $600 million was spent on darknet markets throughout 2018, compared to $700 million in 2017. While the decline in transaction value could be seen in a negative light, considering BTC fell by over 70% within the same time period, a 14.3% drop is relatively mere. Kim Grauer, a senior economist at Chainalysis, chalked the slight decline in darknet transactions to the closure of AlphaBay and Hansa, two “major markets,” in mid-2017, which purportedly stunted flows into early-2018.  Grauer added: The reason for that drop is more law enforcement activity… It would be misleading to think that this year it (the volume) will go down. Why This Stat Is Bullish For Bitcoin So you may be gandering at the title and thinking, why is this non-innocuous statistics an optimistic sign for BTC and the broader cryptocurrency market/sector? Well, let me explain. Although I do not agree with (much of) what goes on via the darknet, the rise in ‘illicit’ transactions underscores a forward-thinking, bullish Bitcoin trend. More specifically, the monumental growth of Bitcoin’s underlying multi-faceted fundamentals throughout 2018. So make no mistake, while the collapse in price is harrowing, people are still using BTC in transactions, not just pure speculation. Per previous reports from Ethereum World News, data compiled by Jameson Lopp, the chief technology officer of Casa, accentuated that from a fundamental perspective, 2018 was Bitcoin’s best year yet. Hashrate doubled, while a cumulative $410 billion in value was transacted on the “world’s most secure transactional settlement layer.” Bitcoin’s scaling solutions also saw notable levels of adoption. SegWit, a short-term, ‘bandaid-esque’ solution that squeezes more transactions into blocks, saw use swell from 10% to 40% over 2018. The Lightning Network, a long-term scaling solution that takes advantage of off-chain ledgers to facilitate effectively free, low cost, scalable, immutable, and private transactions, swelled to 500+ BTC capacity. And while 2019-specific statistics are scant and hard to come by, preliminary data indicates that the following 12 months will continue to see the flagship cryptocurrency & blockchain network continue to gain traction. This isn’t baseless speculation. Per our previous reports, Coinstar, a North American kiosk provider with tens of thousands of offerings across the U.S. & Canada, recently joined hands with Coinme, a Bitcoin ATM upstart, to implement their services into Coinstar’s terminals. Now, over 20,000 kiosks can buy BTC with their spare change. Title Image Courtesy of Noah Silliman Via Unsplash The post Bitcoin (BTC) Darknet Transactions Doubled In 2018: Why This Is Bullish appeared first on Ethereum World News.
Ethereum World News

Gov’t Shutdown Freezes SEC Activity, But Bitcoin ETF Date Unaffected

The US Securities and Exchange Commission (SEC) has frozen all pending administrative proceedings due to the government shutdown. According to a legal expert, however, the Commission is not allowed, by law, to delay the decision on VanEck/SolidX Bitcoin ETF past its current deadline.  No More Delays Despite Government Shutdown The SEC has issued an order on January 16th, putting all pending administrative proceedings on hold because it has “experienced a lapse in appropriations.” According to the documents, all proceedings which have to face a hearing before the Commission or an administrative law judge, are currently frozen. Jake Chervinsky Legal expert Jake Chervinsky said that even though the SEC has been shut down before that order, administrative proceedings were still in motion, hence deadlines were unaffected. Now that the SEC has stayed all administrative proceedings, interested parties may file a motion to dismiss the stay if their proceedings are an exception of the activities stated in the order. Bitcoinist reported that the SEC needs to come up with a decision on the approval of the CBOE-backed VanEck/SolidX Bitcoin ETF by February 27, 2019. Irrespective of the newest order, the SEC isn’t allowed to further delay its decision, the legal expert holds: This does not change anything about the ETF deadline, which is imposed by the statute and cannot be delayed further. This does not change anything about the ETF deadline, which is imposed by statute and cannot be delayed further. I stand by the following: — Jake Chervinsky (@jchervinsky) January 17, 2019 The commission has already delayed its decision multiple times, with the last one happening in December. SEC’s shutdown saw mounting rumors that the Bitcoin ETF might get automatically approved if the commission misses the deadline. While this is true in theory, Chervinsky recently dismissed the possibility, saying that “in reality, it would never happen.” It’s true that a proposed rule change is auto-approved if the SEC doesn’t make a decision by the deadline, but in reality it would never happen. The SEC has enough staff to put out a decision, even if it’s a one-pager saying ‘denied for reasons to be explained later. Chervinsky, who’s also a frequent commentator on cryptocurrency-related matters, has previously said that the chances of a Bitcoin ETF approval are down to 10%. What do you think about the chances of a Bitcoin ETF approval? Don’t hesitate to let us know in the comments below! Images courtesy of Shutterstock, Twitter@jchervinsky   The post Gov’t Shutdown Freezes SEC Activity, But Bitcoin ETF Date Unaffected appeared first on

Report: Bitcoin Use on Darknet Markets Doubled in 2018

Bitcoin use on darknet markets (DNMs) doubled in 2018, a study has shown, rising to an average of $2 million per day. Bitcoin has long been used to buy goods on the darknet due to its relative anonymity, and looks set to remain a favorite on DNMs, despite the existence of more privacy-focused cryptocurrencies. Also read: Dropgangs and Dead Drops: Report Highlights Evolving Darknet Market Opsec DNM Activity Rose Through 2018 A study released by data firm Chainalysis has revealed that bitcoin transactions on the darknet rose throughout 2018 to around $2 million daily, which is nearly double the activity measured at the start of the year, Reuters reports. But over the course of the entire year, bitcoin flowing into darknet markets actually fell to $600 million from $700 million in 2017. This drop was reportedly due to major darknet sites such as Alphabay and Hansa getting shut down. The marketplaces sold everything from guns and illegal drugs to fake IDs. Despite these major successes for law enforcement, transaction volume has continued to rise on the darknet and is set to further grow, Kim Grauer, a senior economist at Chainalysis claims. She asserts that bitcoin’s volatility has done little to stop people dealing with it, saying: “For someone who wants to buy something on a dark marketplace, the fact that the bitcoin price is fluctuating doesn’t really matter.” DNMs Remain Resilient It doesn’t look like darknet marketplaces will be going anywhere anytime soon. As noted in a blog post by Chainalysis, it is incredibly hard to shut down such sites: “Darknet market activity has been remarkably resilient over the last few years, despite continued efforts by law enforcement to shut down illicit activities. When one darknet market closes, others pop up to take its place.” The blog post adds that although darknet market activity fell by 60 percent after Alphabay closed in mid-2017, the slowdown was “short-lived.” Much of the trade from Alphabay has since moved to Dream. Chainalysis has actually claimed there is “some evidence that darknet activity even increases after closures.” As reported this week, the hidden market ecosystem exploded since the closure of Silk Road – the first DNM – and increasingly sophisticated methods are being developed to outwit law enforcement. Methods like ‘dropgangs’ and ‘dead drops’ are being used to evade the clutches of the three-letter agencies. What do you think about the use of bitcoin on darknet marketplaces? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock. Show the world how cutting-edge you are with a Bitcoin Cash T-shirt, hoodie, bag, key-ring, even a Trezor hardware wallet. Shipping all over the world, quality merchandise and, of course, a payment system that makes people say “wow”! The post Report: Bitcoin Use on Darknet Markets Doubled in 2018 appeared first on Bitcoin News.
Bitcoin News

Hot news

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