The Legal Status of Bitcoin


Questions have arisen about the credibility and legality of using cryptocurrency in business. It is best to answer this question regarding your country of residence or the country in which you want to trade using currencies. Some countries have explicitly allowed their use and trade while others have completely banned or restricted it. Cryptocurrency refers here to Bitcoin and its many other altcoins.

The following 8 countries imposed & # 39; & # 39; absolute prohibition on the use of crypto-currencies in commerce. This means that cryptocurrency, including bitcoins, can NOT be used in these countries. They include:

1. Egypt

2. Algeria

3. Bolivia

4. Pakistan

5. Morocco

6. Nepal

7. Iraq

8. United Arab Emirates

Fifteen other countries imposed & # 39; & # 39; implicit prohibition '& # 39; on the use of crypto-currencies. An implicit ban means that the use of bitcoins and other altcoins is restricted in these countries. These countries include China, Bangladesh, Colombia, Indonesia, Iran, Kuwait, Lesotho, Qatar, Saudi Arabia, Bahrain, Dominican Republic, Lithuania, Macau , Oman and Taiwan.

Depending on your country of residence, you can determine whether you are free to use cryptocurrencies as part of a business, whether their use is restricted or totally prohibited. However, different governments have classified bitcoin in different ways. For example, the Central Bank of China has banned the treatment of bitcoins by financial institutions in China. The ban was implemented in 2014. In Russia, the use of cryptocurrencies is allowed, but it is illegal to buy property with a currency other than the Russian ruble. There is therefore an "implicit prohibition" on the use of bitcoins and probably all other cryptocurrencies in these countries.

The researchers described cryptocurrency as a potential tool for escaping economic sanctions. An example is the escape of sanctions against Russia, Iran and Venezuela. This caused major discomfort which led to a meeting between the Russian and Iranian economic representatives. The purpose of the meeting was to discuss ways to bypass the global SWIFT system through the decentralized blockchain technology. It is also noted that Russia supported Venezuela with the creation of Petro (El Petro). El Petro is a national cryptocurrency initiated by the Maduro government with the aim of obtaining valuable oil revenues by circumventing US sanctions. This shows the reason why the use of cryptocurrency is not met with kindness by some governments. However, in August 2018, the Bank of Thailand announced that it was considering creating its own cryptocurrency, the Central Bank Digital Currency (CBDC).

The advertisement

Advertisements concerning bitcoins and other encrypted currencies are prohibited on Facebook, Twitter, Google, Linkedin, Bing, Snapchat and MailChimp. Also in China, the following Internet platforms are banned from advertising in bitcoins: Weibo, Baidu and Tencent. The Japanese line and the Russian platform Yandex are similar cases.

Tax status

In the United States of America, the Internal Revenue Service (IRS) has decided that bitcoin would be treated as a property for tax purposes. This decision has the effect of subjecting Bitcoin to the capital gains tax.

Bottom line

The legality of bitcoins varies from one country to another and remains undefined or evolving in many of them.

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